What is Low Value Imported Goods NZ GST?
New Zealand goods and services tax (NZ GST) applies to sales of low-value goods (“LVIG”) imported by customers into New Zealand. Goods below the value of NZD 1,000 will attract GST of 15%. THE ICONIC will be required to collect and remit 15% on LVIG sold on www.theiconic.co.nz that are shipped from outside New Zealand to customers in New Zealand.
How will the NZ GST impact the Selling Price?
The selling price will be calculated based on the price you set for your item in Seller Centre. The current price you set in Seller Centre will be increased by 15% for any goods you indicate are shipped to a NZ customer address, provided you are an international seller. This applies to customer orders made on www.theiconic.co.nz.
What if we don’t have your NZ residency details?
In the absence of confirmation of your NZ residency, THE ICONIC will treat you as a NZ non-resident unless we have:
Two or more of the following that are non-contradictory and support the conclusion that you are a New Zealand resident:
- You have a mailing or billing address in New Zealand
- You have a New Zealand GST registration number
- You have New Zealand bank details
- Your business IP address is in New Zealand
- Your contact phone number code or landline is in New Zealand
- The Dispatch Country address set in Seller Centre is New Zealand
What if my items are high-value goods?
The legislation enables THE ICONIC to make an election to charge GST on items delivered to NZ with a value of more than NZD 1,000. Given THE ICONIC cannot determine whether the items will be shipped separately or together in one consignment, THE ICONIC will treat all items as taxable and no GST will be charged at customs.
Who is responsible for collecting and remitting LVIG to New Zealand?
When shipping low-value goods from overseas to customers in New Zealand, and you are an international seller, THE ICONIC will be responsible for calculating, collecting, and remitting the 15% LVIG NZ GST directly to the NZ Inland Revenue.
What if the buyer returns the item?
If the customer returns the items, we will refund the amount to the customer and deduct it from your Account Statement, excluding the NZ GST that was withheld by THE ICONIC, as the GST will be refunded to the customer.
What if my company is a NZ non-resident but the goods are already inside NZ at the time of supply (e.g. I have another warehouse in NZ and a customer places an order)? And/or I am not registered for NZ GST.
If you are a NZ non-resident, the supply of distant-taxable goods will be subject to NZ GST, regardless of whether or not the goods are inside or outside NZ at the time of supply. THE ICONIC is liable to collect the 15% GST and pay the NZ Inland Revenue.
What if my company is a NZ resident and I am not registered for GST in NZ?
If you are a resident of NZ and you are not registered for NZ GST, you are subject to the current GST rules. THE ICONIC is not responsible for collecting GST and you should contact your tax adviser to ensure you are meeting your tax obligations.
What if my company is a NZ resident and I am registered for GST in NZ?
If you are a resident of NZ and you are registered for NZ GST, you (and not THE ICONIC) are subject to the current GST rules. THE ICONIC is not responsible for collecting GST. We understand that the current price set in Seller Centre for NZ orders is not inclusive of NZ GST, hence we will apply 15% to the List Price on www.theiconic.co.nz at Checkout. If your GST turnover is more than NZD 60,000, you will be required to register and account for GST on sales of taxable products.
How do I ensure that my package clears customs and is delivered to a New Zealand address?
If you are shipping from outside New Zealand, you must provide with the order the details of the products supplied, the amount of GST charged at 15%, and the company name collecting the NZ GST as ‘Internet Services Australia 1 Pty Ltd’ and include our GST registration number 130 328 539. This information will need to be visible on the Commercial Invoice. Ask your transporter or customs broker to pass this information along the logistics chain so that it can be reported to Customs.
How can I tell which NZ orders are subject to LVIG NZ as separate from LVIG AU and normal AU orders in the TRE Account Statement?
You can use the Report Account Statement to view the export transaction page and generate the Transaction Report for the transaction period in the account. The table below demonstrates the difference between a sale to an AU customer and NZ.