GST to be levied on overseas online shopping

Revenue minister Stuart Nash has announced that GST will go on internet shopping purchases from October next year for goods imported by consumers. This move is expected to raise NZ$ 112m annually within 3 years. The NZ Government decision follows the Australian example  and is expected to help level the playing field for NZ retailers. The proposed rules are to be included in a bill currently scheduled for introduction to the House in Nov 2018. Summary of the proposal from 1 October 2019

  • Offshore suppliers would be required to register for GST if their taxable supplies exceeds NZ$ 60,000 in a 12 month period. This is expected to also cover redelivers which are used by consumers when the supplier does not offer shipping to NZ.

  • The NZ$ 60,000 threshold is the same that applies to domestic businesses

  • Registered offshore suppliers would be required to collect and return NZ GST on goods valued at or below
    NZ$ 1000 supplied to NZ consumers

  • Tariff and border cost recovery charges would be removed from imported consignments valued at or below
    NZ$ 1000 with the exception of tobacco or alcohol products which are not covered by this proposal. All taxes, duties and other charges will continue to be levied by NZ Customs regardless of value on these products

  • Shipments valued above NZ$ 1000 would continue the current process for collecting GST and other duty at the border with the addition of processes so NZ  Customs does not collect GST on those shipments if already collected by the supplier

  • The current border process for managing risk including biosecurity assessment remain in place


Please contact your Mondiale representative should you require any further information.

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