The New Zealand Government passed into law new goods and services tax (GST) rules that apply from 1 December 2019. Overseas businesses that sell low-value goods to consumers in New Zealand may need to register for, collect and return GST of 15%. This applies to merchants or retailers selling directly to New Zealand consumers, as well as online marketplaces and re-deliverers.
Frequently Asked Questions
What is a low-value item?
A low-value good is a physical good valued at NZ$1,000 or less (excluding GST).
What does this mean for overseas businesses that sell goods to New Zealanders?
- update their business systems so they can collect and return GST
- register for GST in New Zealand
- collect GST on each good valued at NZ$1,000 or less, sold to consumers and delivered to addresses in New Zealand
- provide the consumer with a receipt that clearly shows the amount of GST charged
- complete relevant documentation for the New Zealand Customs Service, and
- return that GST to the New Zealand Inland Revenue.
Overseas businesses, online marketplaces and redeliverers need to register for GST when their total supplies of goods and services to New Zealand consumers:
- was NZ$60,000 or more in the last 12 months, or
- will exceed NZ$60,000 in the next 12 months.
- low-value goods valued at $1,000 or less each
- online services and digital products such as e-books, software downloads and streamed movies and music, and
- amounts paid by the consumer for services such as delivery, insurance and your fees.
Does not include supplies to New Zealand GST-registered businesses when determining if you meet the NZ$60,000 registration threshold.
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