New Zealand consider amending the import GST exemption on goods

6 June 2018

From October 2019, the New Zealand (NZ) government is considering whether to make changes to the Goods and Services Tax (GST) rules that apply to non-resident businesses shipping to consumers in the country.

Currently at import into NZ the low value threshold allows all importers to purchase goods from non-resident companies without paying any GST or duties where:

• The combined value of duty, excise and GST calculated on the goods totals NZ$60 or less.
• The goods have no duty applicable and are valued up until an amount of NZ$400.00

By using this threshold, non-resident businesses shipping low value goods can avoid having to GST register and charging GST on their sales in the country.

However in order to remove the unfair advantage that this gives to these sellers over resident businesses, the NZ government is considering whether to make these businesses GST register if their low value import sales sold to non-GST registered businesses, reach the registration threshold of NZ$60,000.

Australia will introduce similar GST rule changes on 1 July 2018.