What to look out for with the new GST on “low-value goods”.
On 1 December 2019, the new “low-value goods” regime will begin imposing goods and services tax (GST) at 15% on goods acquired by New Zealand consumers from offshore suppliers.
The new regime will apply to goods with an individual value of NZ$1,000 or less and will require the following non-resident entities to register and account for GST on sales to New Zealand customers:
Non-resident suppliers will need to determine how they incorporate GST into their pricing. In most cases, it is expected they will increase their prices by adding the GST to the amounts payable by New Zealand customers.
The new low-value goods regime is similar to the remote services or “Netflix” tax that is already in place in New Zealand and is also similar to the low-value goods regime already in place in Australia.
For New Zealand customers, a few things are worth noting:
Given the likely impact of the new low-value goods regime, 2019 might be the time to get your overseas Christmas shopping done extra early.
© 2021 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.