On 1 December 2019, New Zealand introduced new GST rules for overseas businesses that ship low-value goods to consumers in New Zealand.
If your business is impacted by these changes, we’ll need you to add your New Zealand IRD number to your Shippit account.
What's changed?
From 1 December 2019, overseas businesses that sell low-value goods to consumers in New Zealand may need to register for, collect, and return GST of 15%.
A low-value good is a physical good valued at NZ$1,000 or less (excluding GST), such as books, clothing, cosmetics, shoes, sporting equipment and small electronic items.
If the value of goods sold to New Zealand customers exceeds or is likely to exceed NZ$60,000 over a 12 month period, you will need to register for, collect, and return New Zealand GST on those sales.
How can you get ready for the changes?
If the changes apply to your business, the legislation requires overseas businesses to:
Update their business systems so they can collect and return GST.
Register for GST in New Zealand, and collect GST on each good valued at NZ$1,000 or less that is sold to customers and delivered to addresses in New Zealand.
Provide the consumer with a receipt that clearly shows the amount of GST charged.
Return that GST to New Zealand Inland Revenue.
Even if you don’t meet the NZ$60,000 threshold right now, keep track of your turnover so that you’re not caught off guard if the GST rules apply to your business in the future.
What do the changes mean for Shippit users?
If you’re impacted by the changes and are shipping to New Zealand with Seko or DHL Express, you’ll need to add your New Zealand IRD number to your Shippit account.
Go to Settings, then General, and add your NZ IRD number in the International Customs Details section.
We’ll send your IRD number directly to the courier when you manifest a shipment. The courier will reference your NZ tax number when submitting your low-value import to New Zealand customs.
Got any more questions about the new NZ GST rules?
Check out the New Zealand Inland Revenue website for further information about the GST changes. They have also created a short fact sheet for easy reference.