New Zealand Targets Overseas Online Retailers

Earlier this year the New Zealand Government announced its intention to change the Goods and Services Tax (GST) treatment of low-value imported goods. Although this is not a new tax, the proposal has been called the “Amazon tax” in the media because overseas internet-based retailers, such as Amazon, are the target of the rule change.

Earlier this year the New Zealand Government announced its intention to change the GST treatment of low-value imported goods. Although this is not a new tax, the proposal has been called the “Amazon tax” in the media, because overseas internet-based retailers, such as Amazon, are the target of the rule change. The Government has now announced the full details of the changes that are to apply from October 1, 2019.

Currently, no GST is imposed on goods imported into New Zealand with a value of $400 or less, although in some cases these goods may attract import duties and a customs charges.  Under the proposed changes, offshore retailers who sell goods to New Zealand customers will need to register for GST in New Zealand if they have sales that exceed $60,000 per year and collect and return GST on goods valued at $1,000 or below that they supply.  This is in line with the equivalent Australian GST rule that also applies to goods costing $1,000 or less.

Goods costing $1,000 or less will not be subject to import duties or customs charges. For goods costing over $1,000 there is no change; customs will continue to collect GST at the border, impose duties (where applicable), and charge the necessary customs fees.

For more details on GST changes in New Zealand contact Greg James at Crowe New Zealand