As a result of recent changes to legislation in New Zealand, effective 1 December 2019, THE ICONIC is required to collect 15% GST on all low-value good (<$1000) purchases imported into New Zealand and remit to New Zealand Inland Revenue.
What does this mean?
- From 1 December 2019, THE ICONIC has increased the list price by 15% for any orders shipped into New Zealand from an international address.
- THE ICONIC will collect the 15% GST directly from the customer and remit it to New Zealand Inland Revenue. The sales payment exclusive of GST and less our commission will then be paid to you in line with your payment terms.
What Sellers need to do?
When shipping orders to New Zealand (NZ), you will need to include the following information on your commercial invoice for orders <$1000AUD to show that GST has been collected for these items:
THE ICONIC NZ GST Registration Number:
130 328 539
THE ICONIC Company Name
Internet Services Australia 1 Pty Ltd
The document should show the amount of NZ GST included.
You will need to add a column to show the GST amount charged for each item, as this should make it clear to NZ customers that GST has been returned on all items.
Account Changes
To ensure that the New Zealand GST is correctly collected and passed onto NZ Inland Revenue you MUST fill this in your profile information. Once logged into Seller Center, go to Settings > Your Profile and fill in the following section:
In order for New Zealand GST to be collected correctly, you must supply any New Zealand registration and residency details.
The following fields must be filled out:
- Are you a New Zealand resident for tax purposes? (Y/N)
- NZBN - New Zealand Business Number
- Do you have a NZ GST Registration Number? (Y/N)
- NZ GST Registration Number
How does it look on the Account Statements?
Account Statements can be found in Seller Center through Reports > Account Statements
GST will be displayed the following section on your Account Statement:
Orders (Sales Related Transactions)
Sales Revenue
Other Revenue
- GST on Revenue (if applicable)
- GST on Revenue NZ
You will also be able to export the the transactions in which were subject to NZ GST.
FAQ'S
How will the NZ GST impact Sale Price?
The selling price will be calculated based on the price you set for your item in Seller Center. The current price you set in Seller Center will be increased by 15% for any goods you tell us are shipped to an NZ customer address provided you are an international seller. It applies to customer orders made on www.theiconic.co.nz.
What if we don’t have your NZ residency details? In absence of the confirmation of your NZ residency, THE ICONIC will treat you as a NZ non-resident unless we have:
- 2 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 Center 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 my company is a NZ non-resident but the goods is already inside NZ at the time of supply as I have another warehouse in NZ i.e. customer placing 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 subjected 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 subjected to the current GST rules. THE ICONIC is not responsible for collecting GST and you should contact you 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) is subjected to the current GST rules. THE ICONIC is not responsible for collecting GST. We understand that the current price set in Seller Center for NZ order is not inclusive of NZ GST, hence we will apply a 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.
What if the buyer returns the item?
If the customer returns the items, we will refund the amount to the customer and deducted from your Account Statement, excluding the NZ GST that was withheld by The Iconic, as the GST will be refunded to the customer.
How can I tell which NZ orders are subjected 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 to generate the Transaction Report for the transaction period in the account The below table demonstrates the difference between a sale to an AU customer and NZ.
Item example |
Item sold to AU customer |
Item Sold to NZ customer |
Revenue excl GST |
$100 |
$110 |
GST on Revenue credit |
$10 |
Nil |
GST on Revenue credit NZ |
Nil |
$16.50 |
GST withheld |
Nil |
($16.50) |