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GST proposal for low value goods purchases

01 May 2018

Revenue and Small Business Minister Stuart Nash says the Government is proposing to require offshore companies to collect GST on all goods sold to New Zealand consumers.

He has released a discussion document and submissions may be made on the proposals until 29 June 2018.

GST has always been payable on low-value goods but Customs has not found it cost-effective to collect it when it is $60 or less. GST is collected at the border for goods valued over $400.

The proposal means GST will be charged at the point of sale when the value of the goods is NZ$400 or less. Offshore retailers would be required to register and collect GST if their total sales to New Zealand consumers exceed NZ$60,000 per annum.

The changes will take effect from 1 October 2019.

Last updated on the 16th September 2019