03.09.2019

New Zealand: GST exemption to import VAT

New legislation will remove GST exemptions on import VAT

New Zealand GST import vat

Back in July 2019, we reported that New Zealand had proposed new rules for GST regarding low-value imported goods.

The New Zealand Parliament has now enacted legislation removing the GST exemption to import VAT for low value goods. They are now recharacterised as "distantly taxable goods ". They are usually defined as

  • Individually have a value of NZ$1,000 or less;
  • Are outside New Zealand at the time of supply;
  • Are supplied by a non-resident; and
  • Are delivered to New ZealandLearn how to maximise your GST reclaims

As a result , non-resident sellers of those DTGs will need to register and account for GST on the supplies they make.

If you are a non-resident merchant; an operator of an electronic marketplace; or a redeliverer (someone who assists a merchant with the delivery of goods to New Zealand)

And:

  • You are importing goods valued at or below NZ$1,000; and
  • You expect the total value of your supplies to exceed NZ$60,000 over a 12 month period

Then it is likely that you’ll need to register and return GST on these supplies.

The new rules are in effect from 1st December 2019, however, non-residents suppliers can register from 1st September 2019.

Looking at gaining more information possible GST reclaim? Join our FREE webinar at 10:30am (AEST) on Thursday September 19th to get everything you need to know.

Learn how to maximise your GST reclaims

 

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