New Zealand: New Zealand proceeds with reform

of GST on low-value imported goods

Información de publicación: International Tax Review ; London (Jan 28, 2019).

Enlace de documentos de ProQuest

TEXTO COMPLETO
New Zealand is changing the goods and services tax (GST) on low-value imported goods. The Taxation (Annual
Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill was introduced in New
Zealand's Parliament in December 2018.
The Bill follows a government discussion document released in May 2018 (discussion document), which proposed
requiring offshore suppliers to collect GST on low-value goods to be supplied to consumers in New Zealand.
Currently, New Zealand's Customs Service collects import duties and GST on imported goods. GST is not collected
on imported goods where the amount of duty or taxes collectable is less than NZ$60 ($40), which equates to
NZ$400 worth of goods if GST is the only relevant duty.
In recent years, online shopping and e-commerce have led to an increase in the volume of low-value goods
imported into New Zealand and, therefore, an increase in the volume of goods on which no GST is collected. This
has led to concerns that domestic retailers might be at a competitive disadvantage by having to charge GST on
their sales while foreign online sellers could sell low value goods to New Zealand consumers without charging
GST.
As a result, the Bill would require GST to be collected and returned on goods with a value of NZ$1,000 or less that
are supplied by a foreign supplier to a New Zealand consumer. The NZ$1,000 threshold is an increase from the
NZ$400 threshold originally proposed in the discussion document.
As proposed in the discussion document, offshore suppliers that supply NZ$60,000 or more of goods or services
to New Zealand consumers would be required to register for and return GST on those supplies. This is consistent
with the threshold at which domestic suppliers are required to register for GST. Other key aspects of the proposal
include:
a) Electronic marketplaces would be required to register and return GST (as opposed to the actual supplier) when
applicable goods are supplied through the marketplace to a New Zealand consumer. One result of this may be that
offshore suppliers supplying goods through an electronic marketplace would have GST affect their pricing, despite
the supplier itself not meeting the NZ$60,000 threshold;
b) Re-deliverers of goods could also be required to register for and return GST if certain conditions are satisfied
(such as the actual supplier of the goods not delivering, arranging or assisting the delivery of the goods to New
Zealand); and
c) The proposed amendments would not require the collection of GST on supplies of low-value goods to GST-
registered New Zealand businesses.
The proposed amendments in the Bill, if enacted, would apply to supplies made on or after October 1 2019. The Bill
has been referred to Parliament's Finance and Expenditure Committee, with submissions being accepted until
February 28 2019.
Tim Stewart (tim.stewart@russellmcveagh.com) and Young-chan Jung (young-chan.jung@russellmcveagh.com)
Russell McVeagh
Tel: +64 4 819 7527
Website: www.russellmcveagh.com

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DETALLES

Materia: Bills; Consumers; Electronic commerce; Supplies; GST; Suppliers

Término de indexación de Asunto: Consumers Electronic commerce Supplies GST Suppliers; Sector: 42384 :
negocios: Industrial Supplies Merchant Wholesalers 45411 : Electronic Shopping and Mail-
Order Houses

Lugar: New Zealand

Clasificación: 42384: Industrial Supplies Merchant Wholesalers; 45411: Electronic Shopping and
Mail-Order Houses

Título: New Zealand: New Zealand proceeds with reform of GST on low-value imported
goods

Título de publicación: International Tax Review; London

Año de publicación: 2019

Fecha de publicación: Jan 28, 2019

Editorial: Euromoney Institutional Investor PLC

Lugar de publicación: London

País de publicación: United Kingdom, London

Materia de publicación: Business And Economics, Business And Economics--Public Finance , Taxation

ISSN: 09587594

Tipo de fuente: Revista científica

Idioma de la publicación: English

Tipo de documento: Journal Article

ID del documento de 2187363410

ProQuest:

URL del documento: http://fresno.ulima.edu.pe/ss_bd00102.nsf/RecursoReferido?OpenForm

&id=PROQUEST-41716 &url=https://www.proquest.com/scholarly-journals/new-
zealand-proceeds-with-reform-gst-on-low-value/docview/2187363410/se-
2?accountid=45277

Copyright: Copyright Euromoney Institutional Investor PLC Jan 28, 2019

Última actualización: 2021-09-10

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