The New Zealand Inland Revenue Department (IRD) passed a law extending the goods and services tax (GST) to low-value imports starting on December 1, 2019.
The law requires for off-shore suppliers of low-value goods (LVG) valued at NZ$1,000 or less to be charged a GST of 15% at checkout. Please note that no customs duty will be collected from customers on orders valued at NZ$1,000 or less. GST was not previously collected on imported goods where the GST and duty payable is less than NZ$60.
No Action is Required
Offshore suppliers are required to register 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 manage 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.