New GST import stuff

[gjm 3258]

Received this from YouShop. I might disagree with the bit about 'competitive disadvantage' but I understand where they're coming from. Of course, if we weren't sometimes so thoroughly price-gouged we'd probably not be looking overseas for stuff anyway!

 

As a YouShop customer, we want to keep you up to date about some upcoming policy changes from the New Zealand Government that will affect your YouShop experience.

What’s changing?

From 1 December 2019, all items purchased from overseas and shipped to your YouShop address will have 15% Goods & Services Tax (GST) applied. GST will be charged on the total value of the goods and YouShop services purchased.
 
What does this mean to me if I’m using YouShop?

If you’re buying from overseas retailers and shipping to your YouShop address, the retailer will not charge GST at the point of purchase (as they will not be aware that the items’ final destination is NZ). Instead, NZ Post will collect the GST on all purchases (irrespective of value) on behalf of the New Zealand Government, when you pay for your shipping to NZ through YouShop. 

If the value of your consignment* is over $1,000 then Customs may also collect duty (and GST on the amount of that duty) at the border. 

*A consignment is one or more parcels that have arrived together in New Zealand addressed to the same address/person. 

Why are these GST changes being made?

With the growth of eCommerce, NZ businesses are at a competitive disadvantage compared to offshore suppliers, as they are required to collect GST on all sales, while overseas retailers don’t. These changes will help level the playing field for local businesses. 

Want more information?

The New Zealand Government has released a comprehensive Q&A that explains these changes and the rationale behind them in greater detail. You can read this here.

YouShop allows you to shop from any retailer in the U.S. and Europe and have it sent to your unique U.S. and U.K. address. So, even if the retailer doesn’t ship to New Zealand, YouShop will have you covered. It may even be cheaper to have your item shipped through YouShop over the retailer’s international shipping rates, so it’s always a good idea to check.

[Olaf 3317]

"With the growth of eCommerce, NZ businesses are at a competitive disadvantage compared to offshore suppliers, as they are required to collect GST on all sales, while overseas retailers don’t. These changes will help level the playing field for local businesses. "

yes, this is the convenient sound-bite that is trotted out.  I would cease doing business with any company perpetuating that garbage.  Why not try MyUS.com or Shipitto?

I'm having trouble understanding why I am expected to pay goods and service tax on goods and services I sourced from abroad, for private imports?  Did a local company or my government contribute to the construction or provision of these goods or services?

I of course pay GST on all imports for my company.

Edited September 5, 2019 by Olaf

[Mad_Max 231]

Not just that, but you're also paying any local taxes and duties in the country of purchase, so collecting GST at this end as well is putting a tax on top of a tax. 

[M3AN 4016]

1 hour ago, Mad_Max said:

Not just that, but you're also paying any local taxes and duties in the country of purchase, so collecting GST at this end as well is putting a tax on top of a tax. 

That's an interesting point and yes, very true if you're drop shipping something from/to somewhere that has VA, GS or Sales tax...

And even worse, because that'll form part of the base cost it'll also be included in the NZ tax calculation so you're paying a tax on a tax (which tax rules normally try to prevent).

[gjm 3258]

I'm looking at suspension for one of the Mercs. Commercial sellers in the UK and Germany are happy to sell ex-tax. 

[Eagle 1662]

Most places have never charged me tax regardless but some places ive ordered stuff from in the UK will charge VAT for domestic export deliveries. but you could get  VAT refunded upon proof of export via license 

[M3AN 4016]

The point @Mad_Max is making relates to using a freight forwarder - the seller is obliged to add tax based on the immediate destination, not the final one.

So you can't claim VAT exemption, for example, if you're using a freight forwarder that has a UK address (well, until 31/10, or not).

 

 

[Eagle 1662]

Yes you can't claim exemption but certain businesses will refund you the VAT as above. 

[M3AN 4016]

30 minutes ago, Eagle said:

Yes you can't claim exemption but certain businesses will refund you the VAT as above. 

The way I read your other post was that a license was needed, perhaps I got that wrong. Nevertheless claiming tax back is a more involved process and probably bureaucratic, and you've still paid NZ GST on it which will be even harder for Joe Blow to get back (read: impractical).

A worthy consideration when freight forwarding, that's all.

[Mad_Max 231]

1 hour ago, M3AN said:

 you've still paid NZ GST on it which will be even harder for Joe Blow to get back (read: impractical).

And to complicate it even more, even if you get the tax back from the country of origin, the GST component will still be based on the total original price, good luck getting it adjusted to the price + freight before any tax is added in the country of origin.

[richard 384]

left field question,

if a mate/family member sends over a part/present that not documented is that subjected to tax.

[Mad_Max 231]

4 minutes ago, richard said:

left field question,

if a mate/family member sends over a part/present that not documented is that subjected to tax.

Comes down to what "proof" you can provide. For example, my family has just sent part of an inherited estate over to me here in NZ, from Aus. We have had to show the IRD the will which names me as a beneficiary to prove that these items are in fact either a "gift" or were already owned by me while I was in Aus (and were left in Aus) and therefore should be free of any taxes - they still make you put a $$$ value to the items.

Importing a car that I owned in Aus many years ago, I had to sign all sorts of declarations from the IRD that I wasn't going to sell it within 12 months, or GST and import duties would be payable based on the market vale of the car, regardless of what I sold it for.

If the IRD doesn't agree, you pay tax - and if they don't agree with the value you list, they will adjust it to what they want to, and charge GST on that.

Makes it bloody hard for those of us with family and friends overseas who send us presents when the IRD can pick and choose what they deem to be a "gift".

[richard 384]

my brother in Austria send the odd box of lego for my son. at the moment it just turns up on the door step. 

[M3AN 4016]

6 hours ago, richard said:

my brother in Austria send the odd box of lego for my son. at the moment it just turns up on the door step. 

That'll be fine. On the shipping deceleration the sender just need to tick 'Gift' and write 'Lego' in the description. Small packages, irregularly sent to residential addresses and marked as a gift are rarely stopped. If they are stopped you'll face a delay only, no GST (or duty).

[gjm 3258]

Parts for the big, black Mercedes. ?
Actual value is more than this but the shipper has offered a 'gift'... Can't see that working on car parts. Best not to rattle that cage. Declared value can be whatever I'd like it to be - this seemed like a good figure 'til I ran it through the calculator. Maybe $135 (US) is a better idea.

However... Post-new rules, I'll only pay GST on what's coming in, so it'll actually be cheaper!
(At least, that's how I've understood the changes - duty will only be charged on consignments valued in excess of $1000 - under that you get hit for GST regardless of declared value. )

[Mad_Max 231]

11 hours ago, gjm said:

However... Post-new rules, I'll only pay GST on what's coming in, so it'll actually be cheaper!
(At least, that's how I've understood the changes - duty will only be charged on consignments valued in excess of $1000 - under that you get hit for GST regardless of declared value. )

No, not quite how it will work. Customs Duty is only collected if the duty on the $NZ value including shipping is $60 or more. They still calculate how much the duty is first to see if you're liable. If the duty is under $60, you'll pay GST only. However, if the duty is more than $60 you'll be [paying GST on everything including the customs duty.

For arguments sake, you get parts sent over, total landed cost including freight is $200 and deemed not to get the customs duty charged, you'll pay GST on $200. If total landed cost including freight is $500, and a duty is charged, you'll pay GST on the landed cost plus the duty.

Again, it's a tax on top of a tax.

[gjm 3258]

Following the wisdom received hereabouts, I've ordered 4 shocks/struts from FCP and am having them shipped to a MyUS address... Shipping in the US is *free* so that's one cost out of the way.

Let's see how it goes. Can't be worse than my last experience!

[gjm 3258]

On 10/23/2019 at 1:18 PM, gjm said:

Following the wisdom received hereabouts, I've ordered 4 shocks/struts from FCP and am having them shipped to a MyUS address... Shipping in the US is *free* so that's one cost out of the way.

Let's see how it goes. Can't be worse than my last experience!

Update...

Ordered from FCP Euro on 22/10, with (free) delivery to MyUS.
Updated by MyUS and shipped to NZ using FedEx International Economy, where it was delivered this morning - 5th November.

Two weeks order to door. Takes NZ Post that long to get something through customs (having already spent 3-4 days getting it from the plane to customs), then that long again to deliver in country!

Edited November 4, 2019 by gjm

[Eagle 1662]

Did you pay GST?

[gjm 3258]

15 minutes ago, Eagle said:

Did you pay GST?

Not yet.

The manifest lists a number value for the shipment, but doesn't specify a currency...

[richard 384]

has anyone been told that they ( the suppler) no longer ship to new Zealand because of this new law..

 

[gjm 3258]

2 hours ago, richard said:

has anyone been told that they ( the suppler) no longer ship to new Zealand because of this new law..

I'm still not seeing how the NZ gubbmint has convinced every seller on Earth that they're going to collect the GST! 

[Eagle 1662]

Ebay are now collecting gst on goods it seems

[Mad_Max 231]

3 hours ago, richard said:

has anyone been told that they ( the suppler) no longer ship to new Zealand because of this new law..

 

Haven't struck that yet.

14 minutes ago, gjm said:

I'm still not seeing how the NZ gubbmint has convinced every seller on Earth that they're going to collect the GST! 

Not sure...... I haven't paid GST on anything I've imported over the last couple of months, the sellers usually give the invoice at such a  small amount they've probably worked out it'll cost them more to do their own paperwork than the GST they'll collect.

[zero 1162]

4 hours ago, richard said:

has anyone been told that they ( the suppler) no longer ship to new Zealand because of this new law..

 

I know Amazon wont ship internationally to Australia anymore after they passed the same law.

So likely Amazon wont ship here either anymore.