New Zealand: Proposal for GST on “low-value” imports | KPMG | BE
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New Zealand: Proposal for GST on “low-value” imports

New Zealand: Proposal for GST on “low-value” imports

New Zealand’s government announced its intention to impose goods and services tax (GST) on “low-value” imported goods by implementing an Australian-style offshore supplier registration model. This would be consistent with the GST regime that applies to offshore suppliers of services to New Zealand consumers.

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Under the proposal, beginning 1 October 2019, offshore suppliers selling goods with a total value of less than NZ$400 to New Zealand consumers would be required to charge and collect GST, if their total sales to New Zealand consumers exceeds NZ$60,000 (approximately U.S. $42,000) a year.  

Tariffs and border charges would not apply to these goods. The existing border process to collect GST, tariffs, and other charges on imports above NZ$400 would remain unchanged. Marketplaces and re-deliverers would be expected to charge GST on goods supplied through them. This proposal would implement an offshore supplier registration model. Comments are requested concerning how the model would be applied. Submissions are due 29 June 2018.

 

Read a May 2018 report [PDF 183 KB] prepared by the KPMG member in New Zealand

 

Read a May 2018 report [PDF 314 KB] prepared by KPMG’s Global Indirect Tax Services

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