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New Zealand GST foreign B2C low-value goods

From 1 December 2019, New Zealand is imposing its Goods and Services Tax (GST) on imported sales of goods not exceeding NZD 1,000 to its consumers. For any foreign seller or marketplaces making such e-commerce sales to New Zealand consumers there is a GST registration threshold of NZD 60,000. There is a no requirement to appoint a Fiscal Representative.

New Zealand GST on digital services was introduced in 2016.

GST on non-resident sellers and marketplaces

‘Distantly taxable goods’ (low-valued goods) sold by foreign sellers or marketplaces are now liable to import VAT at the point-of-sale instead of at customs entry. This means New Zealand GST must be charged in the checkout by the out of state seller or marketplace.

Excise goods are excluded, and GST remains payable at the border. The same applies for goods in excess of NZD 1,000 – GST is due at customs clearance into New Zealand. Sellers may elect for all goods to be subject to GST at the point of sale if they proportion of goods over NZD 1,000 does not exceed 25% of all sales. B2B sales, where the New Zealand customer can provide a local tax number, are not subject to this regime.

There is an annual registration threshold of NZD 60,000 for foreign traders.

New Zealand GST compliance

If a seller or marketplace GST registers, they must initially apply for an Inland Revenue Department number. They must file GST returns on a quarterly basis. The filings and any GST liability should be submitted by the 28th of the month following the reporting quarter. Returns due for quarters ending November or March have an extension to 15 January and 7 May.

Australia low-value consignment relief was ended 1 July 2018.

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