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Learn more about GST on low-value goods

GST on low-value goods

A transcript of the webinar on GST for low value goods.


Visual:

Music starts. An image of a person's hands holding a paper form on top of a box. The words "Selling goods to New Zealand consumers? Find out what new tax rules could mean for you" are on the screen.

Audio:

Hello.

I’m TeeJay Bannister from Inland Revenue, the government agency responsible for tax in New Zealand.

I’m going to be talking about new rules for New Zealand’s Goods and Services Tax, or GST. These rules mean overseas businesses may need to register for, collect and return GST on low-value goods sold to New Zealand consumers from 1 December 2019.

 


Visual:
"Applying GST rules that require overseas businesses to register for, collect and return goods and services tax (GST) on low-value goods bought by New Zealand consumers. Presented by TeeJay Bannister."

Audio:

This video will help you understand if your business is affected, and what you need to do differently.

The new rules are broadly consistent with Australia’s GST on low-value goods rules, and with our existing GST rules for remote services and intangibles.

 


Visual:
A glossary table with the title 'Definitions.' The terms are:

  1. Overseas business defined as 'Merchants, online marketplaces and redeliverers'
  2. Consumer defined as 'A person who is not registered for New Zealand GST or doesn’t purchase low-value goods for business use'
  3. Low-value goods defined as 'A physical good valued at NZ$1,000 or less, excluding GST, shipping and insurance'

Audio:

First, let’s explain some of the words we use. By overseas businesses, we mean merchants, online marketplaces and redeliverers. By consumer, we mean a person who buys low-value goods that are delivered to New Zealand, and who is not registered for New Zealand GST; or who is registered for GST and uses the low-value goods wholly for personal use. By low-value goods, we mean physical goods valued at NZ$1,000 or less, excluding GST, shipping and insurance.

 


Visual:

The New Zealand GST system.

  • GST is generally charged and accounted for at a rate of 15%.
  • most goods and services supplied in New Zealand have GST included in the price.
  • businesses must register for GST:
    • if sales from taxable activities were NZ$60,000 or more in the last 12 months; or
    • will be NZ$60,000 or more in the next 12 months; or
    • their prices include GST.

Audio:

GST is a tax on goods and services supplied to New Zealand consumers by GST-registered businesses. It may also apply to imported goods and certain imported services.

To summarise:

  • GST is generally charged and accounted for at a rate of 15%.
  • most goods and services supplied in New Zealand have GST included in the price. The exceptions are goods and services supplied by businesses not required to register for GST, and exempt supplies.
  • businesses must register for GST if sales from taxable activities were NZ$60,000 or more in the last 12 months, or will be NZ$60,000 or more in the next 12 months.
  • anyone who carries on a taxable activity, or who intends to do so from a definite date, may register for GST.

 


Visual:

A photo of a ship in a shipping yard. Text reads 'How we currently treat imported goods.'

  • New Zealand Customs Service is responsible for collecting GST on imported goods.
  • GST is not collected on all goods purchased online from overseas.
  • Today the non-collection of GST on all imported goods is becoming increasingly significant.


Audio:

The New Zealand Customs Service (known as Customs) currently collects GST on imported goods - including anything bought from an overseas business where the total amount of GST and tariff duty on the purchase equals NZ$60 or more.

Right now, GST is not collected on all goods purchased from overseas businesses. That’s because collecting less than NZ$60 in GST and tariff duty at the border is not cost-effective and would result in delays and inconvenience for consumers importing low-value goods.

When GST was introduced in 1986, few New Zealand consumers purchased goods from offshore suppliers and online shopping did not exist. Instead, most imported goods were purchased by GST-registered businesses and then sold on to consumers.

Today, the growth of e-commerce means the non-collection of GST on all imported goods is becoming increasingly significant.


Visual:

'What's changing?'

  • From 1 December 2019, instead of being charged GST at the border, overseas businesses that sell low-value goods to consumers in New Zealand will collect GST if they are required to be registered.
  • Customs will stop collecting GST or any other form of duty on consignments valued at NZ$1,000 or less, except for tobacco products or alcoholic beverages.
  • Customs will continue to collect GST on imported consignments valued above NZ$1,000.


Audio:

From 1 December 2019, instead of being charged GST at the border, overseas businesses that sell low-value goods to consumers in New Zealand will collect GST if they are required to be registered.

Customs will stop collecting GST or any other form of duty on consignments valued at NZ$1,000 or less, except for tobacco products or alcoholic beverages. Customs will continue to collect GST on imported consignments valued above NZ$1,000.


Visual

What the changes mean

Audio:

Now let’s have a look at what these changes mean in more detail.


Visual:

Low-value goods are:

  • supplied by an overseas business, including merchants, online marketplaces where the underlying supplier is a nonresident and redeliverers
  • outside New Zealand at the time of supply
  • delivered to a New Zealand location and the supplier or underlying supplier makes, or arranges, or assists the delivery of the goods to New Zealand
  • goods, except tobacco products and alcoholic beverages, which are individually valued at NZ$1,000 or less.

Audio:

Low-value goods are supplied by an overseas business, including merchants, online marketplaces where the underlying supplier is a non-resident, and redeliverers.

Low-value goods are located outside New Zealand at the time of supply, and they are delivered to a New Zealand location.

The supplier - or underlying supplier - makes, arranges, or assists the delivery of the goods to New Zealand.

Finally, low-value goods are goods individually valued at NZ$1,000 or less, excluding tobacco products and alcoholic beverages.

 


Visual:

These changes do not apply to:

  • goods sold to New Zealand GST-registered businesses making business related purchases
  • supplies of fine metal
  • alcohol and tobacco products -GST, excise taxes and customs duties are applied at the border regardless of value.


Audio:

These changes do not apply to:

  • goods sold to New Zealand GST-registered businesses making business related purchases
  • supplies of fine metal
  • alcohol and tobacco products -GST, excise taxes and customs duties are applied at the border regardless of value.

Visual:

Title reads 'Low-value goods example' A cartoon image of an acoustic guitar with a $980 price tag with a teal arrow pointing to a package with a $30 price tag.

Consumer buys a guitar from an overseas business for $980

Does the supplier charge GST on the guitar and the shipping?

YES-the guitar is under $1,000 and the shipping charge is $30.00

$980 + $30= $1,010

$1,010 + 15% GST = $1,161.50

The amount of GST collected is $151.50 ($1,161.50 -$1,010)

Audio:

When goods with an estimated customs value of NZ$1,000 or less are sold to consumers in New Zealand, the consumer will pay 15% GST on the full landed value of the good (i.e. inclusive of any extra charges paid to the supplier for freight and insurance).

Here’s an example:

A New Zealand consumer purchases a guitar from an overseas business for NZ$980 plus NZ$30 for shipping, plus GST. Since the guitar is under NZ$1,000 the supplier must collect GST on both the guitar and the shipping charge.

The total amount paid by the consumer is NZ$1,161.50. The amount of GST collected and returned to Inland Revenue by the supplier is NZ$151.50 (NZ$1,010 x 15%).

There is no customs duty for goods imported in consignments valued at NZ$1,000 or less, so the consumer doesn’t have to pay any more tax when the goods arrive at the border.


Visual:

Title reads 'Low-value goods example' A cartoon image of an bicycle with a $950 price tag, a teal arrow pointing from the bike to a t-shirt with a $75 price tag, a teal arrow pointing from the t-shirt to a $50 price tag.

$950 Bike + $75 T-shirt + $50 Shipping = $1,075 + 15% GST = $1,236.25

The amount of GST collected is $161.25 ($1,236.25 -$1,075)

Audio:

In this example we have two low-value goods that total more than NZ$1,000. Whether the goods are consigned separately or together, the registered business should charge GST on both items - as they are each a low-value good.


Visual:

High-value goods:

Overseas businesses can elect to charge GST on high-value goods to New Zealand if 75% or more of the total value of the goods supplied to customers in New Zealand consists of goods individually valued at NZ$1,000 or less, or where the Commissioner of Inland Revenue has given them approval…

Businesses that choose this option will not need to build systems to differentiate between high and low-value goods.

Audio:

Having a low-value goods threshold means that suppliers who sell both low-value and high-value goods will need to implement systems capable of only charging GST on low-value goods.< /p>

Unlike when sending high-value goods to Australia, overseas businesses can elect to charge GST on high-value goods sold to consumers in New Zealand. They can do this if 75% or more of the total value of the goods supplied to customers in New Zealand consists of goods individually valued at NZ$1,000 or less, or where the Commissioner of Inland Revenue has given them approval.

Businesses that choose this option will not need to build systems to differentiate between high and low-value goods.


Visual:

Title reads 'High and low-value goods example' A cartoon image of golf clubs with a $1,200 price tag, a teal arrow pointing from the golf clubs to shoes with a $200 price tag, a teal arrow pointing from the shoes to a box with a $100 price tag.

$1,200 Golf set + $200 Shoes + $100 Shipping = $1,500 + 15% GST = $1,725

The amount of GST collected is $225 ($1,725 -$1,500)

Audio:

In this example the supplier has elected to charge GST on high-value goods, so the supplier will charge GST on both the low and high-value goods.


Visual:

Title reads 'High-value goods, example with GST charged,' A cartoon image of a mobile phone with a $1,050 price tag, a teal arrow pointing from the phone to a box with a $10 price tag.

$1,050 Phone+ $10 Shipping = $1,060 + 15% GST = $1,219

The amount of GST collected is $159 ($1,219 -$1,060)

Audio:

In this example, because the supplier has elected to charge GST on high-value goods, the supplier will charge GST on the high-value good even though it’s not consigned with a low-value good.


Visual:

Title reads 'High and low-value goods, example' A cartoon image of a dress with a $1,150 price tag, a teal arrow pointing from the dress to books with a $90 price tag and a box with a $0 price tag.

$90 Books+ $0 Shipping $90 + 15% GST = $103.50

The amount of GST collected is $13.50 ($103.50 -$90.00)

$1,100 Wedding dress. High value good –Customs collect GST

Audio:

In this example the supplier has not elected to charge GST on high-value goods. We have low-value goods and high-value goods consigned together. The overseas supplier will charge GST on the low-value goods, and Customs will only collect GST on imported goods individually valued above NZ$1,000.

The supplier has not charged a shipping fee in this example, however if shipping charges were applied, they would need to be apportioned between the two supplies using a reasonable apportionment basis, such as weight.


Visual:

Title reads 'Low-value goods example' A cartoon image of a wine bottle and a pack of cigarettes with a red X beside them.

Example: Does the supplier charge GST on the wine and tobacco? No. The new rules do not apply to alcohol and tobacco. These goods are always subject to excise taxes and GST at the border.


Audio:

In this example the goods being consigned are wine and cigarettes.

The new rules do not apply, as alcohol and tobacco are always subject to excise taxes and GST at the border.

More information about the treatment of low-value goods is available on our website at www.ird.govt.nz/GSTupdate


Visual:

Teal title page reads 'Overseas businesses'


Audio:
Let’s have a look at what this means for overseas businesses.


Visual:

Overseas businesses overview

  • These GST rules are relevant to three types of overseas businesses: Merchants, online marketplaces, redeliverers.
  • They are required to register if their supplies to New Zealand consumers are likely to exceed NZ$60,000 in a 12-month period.
  • An overseas business that is required to register must charge and collect GST on the services and low-value goods they sell to consumers in New Zealand. They must pay the GST collected to Inland Revenue.


Audio:

These GST rules apply to three types of overseas businesses:

  • Merchants who sell goods directly to New Zealand consumers
  • Online marketplaces through which merchants sell goods and services
  • Redeliverers that offer mailbox redelivery and personal shopping services from other countries.

These types of overseas businesses will be required to register from 1 December 2019, if their supplies to New Zealand consumers exceed - or are likely to exceed NZ$60,000 - in a 12-month period.

If supplies exceed the threshold in a 12-month period, but are not expected to in the following 12 months, the business may not need to register if they can provide information in support of this.

When determining if you meet this registration threshold, include all amounts charged to New Zealand consumers for goods and services supplied to them - including delivery, insurance, and any other fees.

Supplies to New Zealand GST-registered businesses do not count towards the NZ$60,000 registration threshold. This means that if an overseas business only sells goods and/or services to New Zealand GST-registered businesses, they do not need to register for GST.

An overseas business that is required to register must charge and collect GST on the services and low-value goods they sell to consumers in New Zealand. They must pay the GST collected to Inland Revenue.

Overseas businesses will also need to let consumers know GST has been applied, by providing a receipt showing the amount of GST charged along with their GST registration number.

Sometimes goods may be purchased by a person who is not the intended recipient of the goods, such as with a gift. GST should be charged when low-value goods are to be sent to New Zealand, regardless of where the person making the purchase is located.


Visual:

Merchants

Merchants who make sales through their own websites, mail orders or call centres are responsible for the GST on their sales.

If a merchant is selling goods through an online marketplace, the operator of the online marketplace is generally responsible for collecting GST.

Any sales made through an online marketplace, where the online marketplace operator is required to account for the GST, don’t count towards the merchant’s turnover for the NZ$60,000 registration threshold.

Audio:

Merchants who make sales through their own websites, mail orders or call centres are responsible for the GST on their sales.

If a merchant is selling goods through an online marketplace, the operator of the online marketplace is generally responsible for collecting GST.

Any sales made through an online marketplace, where the online marketplace operator is required to account for the GST, don’t count towards the merchant’s turnover for the NZ$60,000 registration threshold.


Visual:

Overseas businesses for merchants

Who is liable? When to charge>

Merchant: Low-value goods sold over NZ$60,000 to consumers. Only supplier in the chain. Overseas business must collect and pay GST.

Parcel: $300 + GST

Outcome: GST charged at sale. No tax at the border. Exceptions are alcohol and tobacco.

Audio:

Here’s an example of when a merchant would need to collect and pay GST.


Visual:

Overseas businesses, online marketplaces

The operator of an online marketplace is considered the supplier for GST purposes where the marketplace is involved in setting any of the terms and conditions for the sale -either directly or indirectly -or if it is involved in authorising payments or deliveries.

If the marketplace operator does none of these things, the merchant may be responsible for the GST instead

Online marketplace operators will need to consider the total value of goods sold to New Zealand consumers through their platform to work out if they need to register for GST.

Audio:

The operator of an online marketplace is considered the supplier for GST purposes where the marketplace is involved in setting any of the terms and conditions for the sale - either directly or indirectly – or if it is involved in authorising payments or deliveries.

If the marketplace operator does none of these things, an agreement is required between the merchant and the marketplace operator that the merchant is responsible for the GST. The documentation provided to the customer needs to identify the merchant as the supplier and not the online marketplace.

Online marketplaces will need to consider the total value of goods sold to New Zealand consumers through their platform, to work out if they need to register for GST.

Where a discount is offered by the marketplace to consumers, the value of goods is the reduced price paid.


Visual:

Who is liable? When to charge?

A graph containing three boxes that read 'Merchant' with teal arrow pointing at a red box that reads 'Online marketplace: low-value goods sold over NZ$60,000 to consumers. Online marketplace must collect and pay GST.' A teal arrow points from the red box to a dark blue box that reads 'Parcel: $300 + GST.' A teal arrow points from the dark blue box to a light blue box that reads 'Outcome: GST charged at sale. No tax at the border. Exceptions: Alcohol and tobacco.'

Audio:

Here’s an example of when an online marketplace would need to collect and pay GST.


Visual:

Redeliverers

If low-value goods are brought into New Zealand by a redelivererrather than by a merchant or an online marketplace then the redelivererwill be responsible for the GST on the goods.

Examples of services redeliverers provide include:

  • providing the use of an address outside New Zealand to which the goods are delivered
  • arranging or assisting with the use of an address outside New Zealand to which the goods are delivered
  • purchasing the goods as an agent of the recipient
  • arranging or assisting the purchase of the goods outside New Zealandas an agent of the recipient.

A redelivereris required to register for, collect and return GST if the total value of the low-value goods that they deliver plus any services they supply to New Zealand consumers exceeds NZ$60,000 in a 12-month period.

Audio:

If low-value goods are brought into New Zealand by a redeliverer, rather than by a merchant or an online marketplace, then the redeliverer will be responsible for the GST on the goods.

Examples of services redeliverers provide include:

  • providing the use of an address outside New Zealand to which the goods are delivered
  • arranging or assisting with the use of an address outside New Zealand to which the goods are delivered
  • purchasing the goods as an agent of the recipient
  • arranging or assisting the purchase of the goods outside New Zealand as an agent of the recipient.

A redeliverer is required to register for, collect, and return GST if the total value of the low-value goods that they deliver - plus any services they supply to New Zealand consumers - exceeds NZ$60,000 in a 12-month period.

The value of the goods is the price paid by the recipient for the goods.

Transporters, e.g. express carriers, will not typically meet the definition of a redeliverer, and would not be expected to charge GST unless they also offered a redelivery service and met the registration threshold.


Visual:

A graph containing two boxes that read 'Merchant' with teal arrow pointing at a red box that reads 'Online marketplace.' A teal arrow points from the red box to a light blue box that reads 'Redliverer: Low-value goods sold over NZ$60,000 to consumers. Redeliverer must collect and pay GST.' A teal arrow points from the light blue box to a dark blue box that reads 'Parcal $400 + GST.' A teal arrow points from the dark blue box to a green box that reads 'Outcome: GST charged at sale. No tax at the border. Exceptions: Alcohol and tobacco.'

Audio:

Here’s an example of a situation where a redeliverer would need to collect and pay GST.


Visual:

Selling to businesses

Audio:

Selling to businesses


Visual:

Selling to businesses overview

A customer may be treated as GST registered if they provide their GST/IRD number or New Zealand Business Number (NZBN); or notify the supplier that they are registered for GST.

If a customer is not registered for GST or the goods are not for business use, then GST should be charged. If an overseas supplier incorrectly charges GST on a business-to-business supply of goods they can either issue a tax invoice if the supply is valued at or below NZ$1,000; or refund the GST to the purchaser.

Audio:

Generally, GST does not apply to low-value goods sold to a GST-registered customer if the goods are for business use. A customer may be treated as GST registered if they provide their GST/IRD number or New Zealand Business Number (NZBN); or notify the supplier that they are registered for GST.

If a customer is not registered for GST, or the goods are not for business use, then GST should be charged. If an overseas supplier incorrectly charges GST on a business-to-business supply of goods, they can either issue a tax invoice, if the supply is valued at or below NZ$1,000; or refund the GST to the purchaser.

Overseas businesses can make an election to charge GST on their low-value supplies to GST registered businesses if certain conditions are met. You can see more about this on our website.


Visual:

Selling to businesses example

Cartoon image of person at computer writing 'Do I charge GST?' One teal arrow points to 'B2B: provides GST/IRD number or NZBN. States GST registered. Do not charge GST.' with a cartoon image of an office building. Another teal arrow points to 'B2C charge GST' with an animation of a house.

Audio:

Here’s an example of when you would and would not charge GST if you’re selling to a business.


Visual:

Preventing double taxation

Audio:

I’ll now talk about some mechanisms that have been put in place to prevent double taxation at the border.


Visual

Preventing double taxation overview

The mechanisms to prevent double taxation are: the supplier provides tax information on customs documents however this is not currently available for mail items and the consumer can provide a receipt to ensure that GST is not applied again.

Providing this information will prevent GST being charged a second time if the goods arrive at the border in a consignment with a customs value over NZ$1,000.

If GST is paid again on importation, the consumer will need to seek a refund directly from the supplier.

Audio:

The mechanisms to prevent double taxation are the supplier provides tax information on customs documents – however, this is not currently available for mail items and the consumer can provide a receipt to ensure that GST is not applied again.

Providing this information will prevent GST being charged a second time if the goods arrive at the border in a consignment with a customs value over NZ$1,000.

If GST is paid again on importation, the consumer will need to seek a refund directly from the supplier.


Visual:

Preventing double taxation notification

Notification requirements: Receipt.

Animation of a person at their computer labelled merchant with a comment box that reads 'what do I need to include?' An animation of a form that reads 'must include key information' is beside the person. Arrow points to an animated house with the title 'consumer: Receipt can be used to prove GST was paid.'

Audio:

In this example we have a supply of low-value goods made by a merchant.

The business responsible for collecting the GST must provide a receipt to the consumer that contains:

  • the supplier’s name and registration number
  • the date of supply
  • the date which the receipt is issued
  • a description of the goods
  • the price paid for the goods, and the amount of tax included (which may be expressed in a foreign currency)
  • information indicating the goods which have GST included, and
  • information indicating the goods which have not had GST included.

Businesses may apply to Inland Revenue for permission to include alternative information in a receipt. See more about this on our website.


visual:

Preventing double taxation customs reporting

Notification requirements: Customs reporting

Boxes reading 'Merchant,' 'online marketplace,' and 'redeliverer' point to a person behind a computer with comment box reading 'What do I need to include?' Teal arrow points to a form reading:

  • A GST-registered supplier will need to provide their registration number their name; and an indication of which goods have had GST paid.
  • For goods transported by express freight, the supplier provides the GST information provided to the freight forwarder or customs broker

Audio:

Example: Overseas businesses also need to ensure certain tax information is included on customs documents for goods they transport to New Zealand through cargo and express carrier channels.

This applies to all low-value goods the overseas business supplies or redelivers into New Zealand through these channels, whether the recipient is a consumer or a New Zealand business registered for GST.

The overseas business must provide its GST registration number, and indicate which goods in the consignment have had GST paid. It is required to return GST on a supply of low-value goods, and will need to ensure that its name is available to Customs at the time of importation of the goods.

For goods transported by express freight, the supplier must take reasonable steps to ensure the freight forwarder or customs broker have the correct information to complete customs documents on behalf of the importer. This requirement can be met by providing the GST information – included on the receipt or tax invoice – in the commercial documentation provided to the freight forwarder or customs broker.


Visual:

Registration, returns and payments

Audio:

Now I’ll explain how businesses register, report, and pay GST.


visual:

Registration, returns and payments overview

The easiest option for many businesses is to do a simplified pay-only registration.

Under the simplified registration, businesses can register electronically and lodge and pay GST quarterly.

The second option is for an overseas business to do a full GST registration. This is the same system that New Zealand businesses use and would enable businesses to claim back New Zealand GST they incur in purchasing goods and services.

Audio:

Businesses will need to register and obtain a New Zealand GST number.

There are two registration options for overseas businesses.

The easiest option for many businesses is to do a simplified pay-only registration. Under the simplified registration, businesses can register electronically, and lodge and pay GST quarterly.

The second option is for an overseas business to do a full GST registration. This is the same system that New Zealand businesses use, and would enable businesses to claim back New Zealand GST they incur in purchasing goods and services.

Businesses need to consider carefully which option is best for them - there are different requirements and rules for each system. Note that doing a full GST registration requires proof of identity and can take longer to process.


Visual:

Picture of someone using a laptop with a myIR logo on the screen.

Registration

The simplified pay only registration will be available from early September through our website. You will not be required to provide any documentation or a New Zealand Business Number.

Once you are registered you can use your online account to lodge, pay and to check your history.

Audio:

Now I’m going to talk a little about how the simplified pay-only registration works.

The simplified pay-only registration will be available from early September through our website. You will not be required to provide any documentation or a New Zealand Business Number.

Once you are registered, you can use your online account to lodge GST, make payments, and to check your history.


Visual:

Returns

The first GST return under the new rules will be a four-month period from 1 December 2019 to 31 March 2020. From 1 April 2020, you will need to file quarterly. A pay-only GST return will be available for overseas suppliers that only return GST. This return will only include fields relevant to returning GST, such as the amount of:  supplies to consumers in New Zealand  GST required to be paid. If you return and claim GST, you'll be required to file a full GST return.

Audio:

The first GST return under the new rules will be a four-month period from 1 December 2019 to 31 March 2020. From 1 April 2020, you will need to file quarterly.

The quarters, or taxable periods, are:

  • 1 April to 30 June
  • 1 July to 30 September
  • 1 October to 31 December, and
  • 1 January to 31 March

You have until the 28th of the month following the end of your taxable period to file and pay any GST owing. For example, the June quarter GST payment and return are due 28 July. The March quarter payment and return are an exception and due 7 May.

If you haven't made any supplies in a taxable period, you must file a nil return. If you don't file a nil return, we may charge a late filing penalty.

A pay-only GST return will be available for overseas suppliers that only return GST. This return will only include fields relevant to returning GST, such as the amount of:

  • supplies to consumers in New Zealand, and
  • GST required to be paid.

If you return and claim GST, you'll be required to file a full GST return.

Accurate records of all transactions must be kept for seven years and may be kept:

  • at a place outside New Zealand, and
  • in any language except where tax invoices and credit or debit notes require certain English words

Visual;

Payments

You can make payments to Inland Revenue from anywhere in the world.

Includes a ird.govt.nz/tasks/make-a-payment

Screenshot of Inland Revenue's 'Make a payment' page

Audio:

You can make payments to Inland Revenue from anywhere in the world using money transfers or a fee-free payment service.

See more about this on our website. Search for the key words “Make a payment”.


Visual:

Compliance

Audio:

I’ll now talk a little about our compliance approach.


Visual:

Compliance – Getting ready for 1 December 2019

Overseas businesses who are required to register for GST under the new rules will need to:

  • update their business systems so they can collect and return GST to Inland Revenue
  • register with us for GST in New Zealand
  • charge and collect GST on each good sold to consumers and delivered to addresses in New Zealand:
    • valued at NZ$1,000 or less
    • valued over $1,000, if you’ve elected to do so
  • ensure that a receipt is provided to the consumer clearly showing the amount of GST charged
  • complete relevant documentation for the New Zealand Customs Service
  • file GST returns and pay the GST to Inland Revenue.

Audio:

Overseas businesses who are required to register for GST under the new rules will need to:

  • update their business systems so they can collect and return GST to Inland Revenue
  • register with us for GST in New Zealand
  • charge and collect GST on each good sold to consumers and delivered to addresses in New Zealand:
    • valued at NZ$1,000 or less
    • valued over $1,000, if you’ve elected to do so
  • ensure that a receipt is provided to the consumer clearly showing the amount of GST charged
  • complete relevant documentation for the New Zealand Customs Service
  • file GST returns and pay the GST to Inland Revenue.

Visual:

Compliance getting ready for 1 December 2019

Review your sales to New Zealand and if you think you need to register, think about whether you need to change your pricing to include GST, or make any changes to your receipts.

Audio:

Review your sales to New Zealand and if you think you need to register, think about whether you need to change your pricing to include GST, or make any changes to your receipts.


Visual:

Compliance getting ready for 1 December 2019

If you’re an overseas business selling through an online marketplace, talk to the marketplace operator about your respective obligations.

Redelivererswill be treated as the supplier of low-value goods for GST purposes if the actual supplier of the goods and no online marketplace is involved in the delivery of the goods to New Zealand. If you offer a redelivery service, you should also consider your obligations.

You may also wish to consult your tax professional.

Audio:

If you’re an overseas business selling through an online marketplace, talk to the marketplace operator about your respective obligations.

Redeliverers will be treated as the supplier of low-value goods for GST purposes if the actual supplier of the goods and no online marketplace is involved in the delivery of the goods to New Zealand. If you offer a redelivery service, you should also consider your obligations.

You may also wish to consult your tax professional. Please don’t hesitate to contact us – we are here to help.


Visual:

Compliance - we're here to help

Compliance with the new laws is being encouraged by communication and awareness, providing a range of guidance products through our website and simplified GST.

If a business doesn't want to work with us, New Zealand has agreements with other countries on mutual cooperation, information exchange, assistance in tax matters.

In addition, Inland Revenue and Customs will work together on matters of non-compliance.

Audio:

We’re working with overseas businesses to help them understand this change and help them register for GST.

If there’s an issue, we’ll talk with businesses to find out what we can do to help.

We may ask for information to ensure businesses are doing the right thing by collecting and paying GST on their supplies and we may also use third party information to help us identify risks.

If a business doesn’t want to work with us, New Zealand has agreements with other countries on mutual co-operation, information exchange, and assistance in tax matters.

The agreements mean New Zealand can request other foreign tax authorities to provide information about foreign taxpayers, and share information with foreign tax authorities about foreign taxpayers that are under audit in New Zealand. In addition, Inland Revenue and Customs will work together on matters of non-compliance.

However, I want to stress that our focus remains on talking to businesses up front and early, on providing guidance and on working together to resolve any issues.


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More information

Audio:

Before I finish, here is some detail about how we can help.


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Technical resources

On our website you can find The Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration and Remedial Matters) Act

Audio:

The Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration and Remedial Matters) Act can be viewed in full on our website.


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Contact us

Globe icon beside website address www.ird.govt.nz/GSTupdate

Email icon beside email address info.lvg@ird.govt.nz

Phone icon beside Phone +64 4 8903056Monday to Friday, 8am to 4.30pm NZST. Translation services are available from 9am to 4.30pm NZST.

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Once again – our website address is www.ird.govt.nz/GSTupdate If you have any questions or you need our advice, please contact us at info.lvg@ird.govt.nz.


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Thank you

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Finally, thank you for taking the time to watch this presentation. We appreciate your interest.