New Zealand’s New GST Collection Model for Low Value Imported Goods

The latest New Zealand low value imported goods changes are another of many occurring globally in the e-commerce indirect taxes area. On December 5, 2018 the New Zealand government introduced into Parliament the Taxation Bill that is a landmark development proposing new rules that will require offshore sellers, from October 1, 2019, to register and account for Goods and Services Tax (‘‘GST’’) at 15 percent on supplies of low value imported goods (‘‘LVIGs’’) if sales to New Zealand private consumers in a 12-month period exceed NZ$60,000 ($41,380). The $60,000 threshold is the same GST registration threshold that applies to domestic businesses and offshore suppliers of cross-border remote services.

For detailed information please see the below link or the attached article from Eugen Trombitas, PwC NZ Partner and PwC Global E-commerce indirect taxes leader, published in Bloomberg International Tax News.

https://www.bna.com/insight-new-zealands-n57982094757/

NZ GST article

About Zsolt Tenczer

Senior Manager PwC Switzerland email: zsolt.x.tenczer@ch.pwc.com Mobile: +41-79-580-5058 Office: +41-58-792-4560

I started my career at the Hungarian Tax Authority in the last millenium at the dawn of the internet. Joined PwC in 1999 on top of the ebiz boom, when we thought online business will revolutionise the economy in 5 years. I specialized on VAT or more generally on indirect taxes. After several years spent in the Hungarian indirect tax practice, I moved to Zurich, Switzerland where I am working as a senior manager in the International VAT team and Network Driver for the Global Indirect Tax Network of PwC.