The New Zealand Inland Revenue Department (IRD) has passed a law extending the goods and services tax (GST) to low-value imports starting on December 1, 2019.
Currently, GST is not usually collected on imported goods where the GST and duty payable is less than NZ$60. However, the new law requires for off-shore supplies of low-value goods (LVG) valued at NZ$1,000 or less to be charged GST at 15%. Please note this will only impact taxes, not duties, and will not vary by region. No customs duty will be collected from customers on respective goods valued at $1,000 or less.
No Action is Required
Offshore suppliers are required to registered for GST in New Zealand if their sales exceed $60,000 within 12 months. As part of the value that Pitney Bowes brings to your international business, we will be managing the addition of tax at checkout and the requirements to file and pay the New Zealand government.
What Can You Do to Prepare?
To counteract an impact on volume, we recommend talking to your Client Success Manager about incorporating changes to your marketing tactics.
To learn more about the updated legislation, click here.