GST on imported low-value goods proposals launched

The Government has launched proposals for offshore suppliers of low-value goods to New Zealand consumers to collect and return GST on those goods. Submissions close on 29 June.

For more information see the Minister of Revenue and the Minister of Customs' media statement, questions and answers, discussion document, fact sheet, and letter from the Tax Working Group.

Summary of the proposals

From 1 October 2019:

The current duty-owed de minimis of $60 would change to a value-based de minimis of $400.

Offshore suppliers would be required to register, collect, and return New Zealand GST on goods valued at or below $400 supplied to New Zealand consumers (supplies to New Zealand GST-registered businesses are excluded).

The rules would apply when the good is outside New Zealand at the time of supply and is delivered to a New Zealand address.

Offshore suppliers would be required to register when their total supplies of goods and services to New Zealand exceed NZ$60,000 in a 12-month period.  In certain circumstances, marketplaces and re-deliverers may also be required to register.

Tariffs and border cost recovery fees would be removed from goods valued at or below $400.

The current processes for collecting GST and other duty at the border by Customs would continue to apply for goods valued over $400.

The current processes for managing border risks, including biosecurity assessment remain in place.

To make a submission e-mail policy.webmaster@ird.govt.nz or write to:

GST and low-value goods
C/- Deputy Commissioner Policy and Strategy
Inland Revenue
P O Box 2198
Wellington 6140