GST On Low-Value Imported Goods

From 1 December 2019, overseas businesses selling low-value goods to consumers in NZ may need to register for, collect and return Goods and Services Tax (GST) of 15%.

Low-value goods are those valued at NZ$1,000 or less (exclusive of GST). Examples include books, clothing, cosmetics, shoes, sporting equipment and electronic items. NZ Customs will continue to tax goods sold for more than NZ$1,000 at the border as they come into New Zealand.

Businesses must register for GST if their total supplies, including services, digital products and low-value goods, to consumers in New Zealand exceed or are likely to exceed NZ$60,000 in any 12 month period. 

The rules apply to overseas businesses selling goods into NZ directly to NZ consumers, as well as online marketplaces and re-deliverers.

What does it mean for you?

For those of you who import items or purchase goods online from overseas, you will see those businesses include GST at 15% on purchases from 1 December 2019. More information can be found on Inland Revenue’s website.

What do I have to do?

There is nothing you need to do at your end, it is business as usual.

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