Inland Revenue urges overseas businesses to register for GST
Overseas businesses selling goods valued at a thousand dollars or less to New Zealand consumers are urged to register for GST ahead of a 1 December deadline.
The Government is introducing an offshore supplier registration system that requires overseas businesses to collect GST on low-value goods sold to New Zealand consumers at the point of sale. These businesses may need to register for, collect and return GST of 15% from 1 December this year.
Inland Revenue spokesperson Nick Bradley says New Zealand retailers already include GST in the price of their goods, collect this GST, and pay it to IR.
“Right now, GST isn’t collected on all goods purchased online from overseas because the cost of collecting less than NZ$60 in GST and tariff duty at the border isn’t cost-effective,’ Nick Bradley says.
“The change will help level the playing field for New Zealand businesses and stop the loss of a significant amount of tax revenue from the steady growth in online shopping.
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