New Zealand Law Society - GST proposal for low value goods purchases

GST proposal for low value goods purchases

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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.

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