From 1 December 2019, there is a new GST Rules for low valued imported goods. Overseas businesses that sell goods valued less or equal to NZD 1,000 to customers (private individuals) in New Zealand may need to register for, collect and return, Goods and Services tax (GST).
The rules apply to overseas businesses selling low-value goods directly to New Zealand consumers, as well as online marketplaces and redeliverers. The NZD 1,000 threshold is based on the customs value of the goods. This means transport and insurance costs are excluded when determining if GST needs to be charged.
Furthermore, New Zealand Customs will no longer collect any duty (including import GST) on consignments valued at NZD 1,000 or less, except for tobacco and alcohol.
Suppliers will be required to issue a receipt (and not a tax invoice) to customers where GST is charged at 15% to ensure New Zealand Customs is notified that GST has been charged.
If the supplier is not registered for GST in New Zealand, the following information below can be left blank:
- GST number
- GST paid indicator on the goods item line