New Zealand scraps GST import threshold 2019
- Apr 30, 2018 | Richard Asquith
New Zealand is considering withdrawing its low-value consignment stock threshold for import Goods and Services Tax from 1 October 2019. The proposed measure would help reduce tax evasion, and level the playing field for local retailers. A public consultation has now been launched to consider the effects of the measure.
Currently, goods bought from foreign online marketplaces or e-retarilers are not subject to 15% import GST if below the thresholds of NZ$400. The withdrawal of the relief would oblige foreign e-retailers to register and charge 15% GST. There is a GST sales registration threshold of NZ$60,000 per annum.
Australia is withdrawing its 10% GST import relief on 1 July 2018. The EU plans to do the same in January 2021.