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New Zealand scraps low value consignment GST Oct 2019

  • GST
  • 19 October 2018 | Richard Asquith

New Zealand scraps low value consignment GST Oct 2019

New Zealand has proposed scrapping the Goods and Services Tax (GST) and customs duty low-value consignment relief of NZD 1,000. It will be requiring foreign e-commerce traders selling goods to local consumers to VAT register once their annual sales crossed a NZD 600,000 threshold. Supplies to businesses will remain zero-rated.

Marketplaces may also be held liable to the GST if they authorise payments, delivery and manage general terms and conditions. Re-deliverers, who organise delivery into New Zealand of online consumer purchases, are also potentially liable to register and collect GST.

GST returns are filed quarterly, and will likely be under the simplified sales-only registration.

The aim is to ensure non-resident online sellers and marketplaces do not have an unfair tax subsidy compared to local online and bricks-and-mortar retailers. It follows a similar move in Australia in July 2018. The European Union is planning to withdraw its €22 VAT exemption in 2021.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.