Standards for Imposing Customs VAT
On December 01, 2019, the New Zealand GST imposition legislation was revised.
When receiving goods from abroad, New Zealand Customs may charge customs duties (Duty) & VAT (GST) depending on the price and type of the goods.
The customs VAT regulations have been changed as follows, so please read carefully!
“From December 01, 2019, when importing all products with a declared amount of NZD$1,000 or less
15% (GST) of the total purchasing amount + the overseas shipping fee will be charged upon payment of the shipping fee.”
Q1. Why is this change happening??
Businesses in New Zealand include GST in the product price when selling products and pay GST on sales and imports, on the other hand, it continues to grow overseas imports which are difficult to impose GST.
It seems to give fair conditions to overseas imports and Businesses in New Zealand.
It is said that the IRD is recently introducing overseas supplier registration into the system so that GST can be collected!
Q2. What about products over NZD$1,000?
As same as before, formal customs clearance is carried out, and customs duties (DUTY) and VAT (GST) are charged.
**The peculiarity of this revision is,
① If your company is registered in New Zealand
② In case of bringing it for sale in the place of business
③ In case of bringing products under NZD$1,000
If all three conditions above are applied, you will not be charged GST. (Excluding cigarettes, alcohol and metals)
If you are in this case, please enter your business name and GST number when filling out the application.
Before purchasing the item, please visit the “What’s My Duty” site to calculate the estimated duty/ GST and see whether your item is within the tax-free limit.
(https://www.customs.govt.nz/business/import/import-payments-and-refunds/customs-duty-and-gst/)