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New Zealand GST change for Low Value Goods below NZD$1,000

15th August 2019

The New Zealand Parliament passed on 26th June the GST (Goods Services Tax) Offshore Supplier Registration Bill.

From the 1st of December 2019, goods below value NZD$1000 will attract a GST of 15%.

The changes implemented in New Zealand are very similar to the GST legislation that was introduced in Australia back in July 2018.

Impact on GEM customers exporting to New Zealand

These changes mean that, as of 1 December 2019, customers who generate GST value sales revenue of more than NZD$60,000 New Zealand will need to register for the New Zealand goods and services tax (GST) and charge this at point of sale.

Customers may include online shopping platforms, independent merchants and mailbox re-delivery service providers.

The GST applies to low value goods (LVG’s) shipped in consignments equal to or less than NZD$1000. LVG’s are classed as physical goods i.e. books, cosmetics, clothing, shoes, sporting equipment & electronic items.

Customers who meet the NZD$60,000 threshold are required to:

Once a business has obtained an IRD/GST number, they will be required to input this number to the Receiver/Consignee VAT/GST field on their GEM electronic shipping solution.

The information is be visible on the Commercial Invoice and Waybill  

For more information on the changes, exemptions, and how businesses can register for an IRD/GST number visit the IRD website . You can also contact the IRD via email at info.lvg@ird.govt.nz