From 1 December 2019, offshore sellers (including electronic marketplaces and re-deliverers) will be required to register and charge GST at 15% on supplies of low value imported goods if sales to New Zealand private consumers in a 12-month period exceed $60,000. This has often been referred to by the media as the Amazon tax.
The requirement to register impacts non-resident businesses, marketplaces and re-deliverers that sell goods valued at $1,000 or less to consumers (private individuals) or non-registered businesses in New Zealand.
What does that mean for you as a private consumer in New Zealand?
New Zealand consumers are generally likely to see the price of low-value imported goods increase to take into account the New Zealand GST. However, this may not be the case across the board.
Online shoppers buying from offshore suppliers may therefore want to get a jump start on their Christmas shopping if they wish to save themselves the GST (or other increase) that will be imposed from 1 December 2019.
If you are an offshore business which is affected by this change, please contact one of the team at Hayes Knight who would be happy to assist you with your compliance obligations. For the rest of you… … … get shopping!