Paying tax on goods into NZ

[Mavrick 0]

Am looking at purchasing a wetsuit from an American company as it is cheaper than buying them in NZ, totalling about $500 incl the shipping (NZ Dollars).

Am i likely to have to pay tax or any money on this entering the country? The guy said he will put the cost of the wetsuit at half price so i dont have to pay as much. If so, how much roughly?

If anyone with some knowledge on this matter could give me a heads up it would be much appreciated.

Cheers,

Hamish

[e30ftw 410]

When it goes through customs they will hold on to it and you will get a letter about it. They just add GST onto it, so 12.5%. Only time I have had to pay GST was with a megasquirt ECU I got from there which the guy put as $900nzd so I had to pay like $112. Next cheapest thing was $560nzd for a clutch but never got charged GST on that, And a few other things around that price margin too, never got charged with GST..

[Jamez 2147483647]

Do I pay Goods and Services Tax (GST)?

In addition to the tariff duty payable on certain categories of goods, GST of 12.5 percent is charged on all imported goods, even though the entire transaction, including payment, may have been conducted offshore. The GST is calculated on the Customs value of the item (which may include tariff duty) plus any freight and insurance costs incurred in bringing the goods to New Zealand.

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What if I’m importing a low value item?

Customs does not make any charge where the revenue payable on any one importation is less than $50. In practical terms this means that goods, which attract only GST, can be imported up to a value (including freight and insurance) of NZ $399 before the revenue collection threshold is crossed. However with clothing, footwear, and other dutiable goods, the revenue collection threshold is much lower.

Useful site for info

Also....Wet Suits incur an 18% tariff duty.

Edited December 30, 2009 by Jamez

[M3_Power 636]

Anything over NZ$400 including shipping is taxable - some times customs will let it slip, other times they'll collect.

Undervaluing is illegal and if caught you can get a big fine, but most of the time customs will just let it slip on small items like that.

Putting it as a 'gift' works also occasionally - especially if you don't import a lot of stuff (again the $400 limit applies).

For personal use items duty is rarely collected unless it is worth their while - most of the times it'll be collected if sent via the likes of Fedex, UPS and DHL.

PM me if you need more info - I've imported so much from around the world I've become a bit of an expert on the topic now if I may say so haha .. so much so that customs makes routine checks on all my imports now as I believe I am now on their "must check database" haha ..

[Forrest 35]

Not related to car products, but I buy all my running racing spikes off American sites and from what I have heard if it is over a certain dollar value e.g $400 as previously mentioned for personal goods, they tax it at random, i.e every fifth package and if it is over a certain dollar value it gets taxed. This was items from a company not through ebay etc where it can be labled as a gift so it won't be taxed. Just what I had heard a few years back through talking to New Zealand customs. I have been taxed before exceding the limit, then not taxed for also exceding it.

[e30ftw 410]

^ I hope thats true, I just bought something quite expensive from the states and just made it into the country. Will be curious to see if I get taxed or not.

[yng_750 247]

just remember if you mark it as worth $100 when its worth $600 you can only expect to be paid the $100 under insurance if its damaged in transit

[Mavrick 0]

Thanks for all of the info. Seems a bit like daylight robbery if you're just buying stuff for yourself.

Have just got to do some figures and work out if it is still cheaper, pretty sure it will be.

Cheers,

[Sick Puppy 1]

Thanks for all of the info. Seems a bit like daylight robbery if you're just buying stuff for yourself.

Have just got to do some figures and work out if it is still cheaper, pretty sure it will be.

Cheers,

True, but bear in mind that GST is a tax on consumption of goods within New Zealand, so if you import it here, you're consuming it here... $50 is the administrative limit at which it is considered worth imposing...

[kiwiland 3]

Another nasty in paying GST on imported Jap cars for example is Customs cute habit of setting their own exchange rate when converting the Yen price to NZ$ and then applying GST. Does not matter how good an exchange rate you got when buying the yen to send overseas. Guess every little helps the Govt

[tonylauno1 7]

I hear some people put the value down and say this is a sample or something to avoid any extra charges...

[elmarco 56]

If I remember correctly Customs have the right to tax it at what they value the item at - not what you might have paid for it, or what is written on the paperwork.

[chaosad 0]

As mentioned above, if the item would incur more than $50 gst (12.5% of $400 is $50) and it gets picked up, you will get sent a letter requesting the payment of gst plus any other levvies.They wont release the item until this is paid.

It you use a business address it is very likely to get picked up, but if you don't, most of the time they seem to slip through.

I have heard if the sender ticks the box saying its a gift then you wont get charged gst.

At the end of the day, bank on having to pay gst. If it slips thought, consider it a bonus.

[Nobimmer 694]

I've been taxed all three times that Ive brought car parts into the country. They were $1600NZD, $3200NZD and $2400 NZD. Tax pwned me.

[deeveus 81]

just remember if you mark it as worth $100 when its worth $600 you can only expect to be paid the $100 under insurance if its damaged in transit

Which is fair enough, but it's already arrived

They send you the letter confirming that it's landed, I've imported all our housing goods from Australia when I lived there & they wanted to rape us for our TV we bought there, we just said we bought it 2nd hand for a silly amount however for insurance/replacement purposes it's different if you've paid insurance from when it's left the origin.

[cliffdunedin 8]

Late last year my brother moved from Aus to the UK and sent me over his 50' lcd and ps3 that were less than 6 months old. i never had to pay any tax! so perhaps 2nd hand goods or items give are not taxable.