New Zealand Confirms GST on Online Shopping

November 15, 2017 Taxation in New Zealand

129624134WELLINGTON – All online purchases in New Zealand will soon be liable for a 15 percent tax.

The new Revenue Minister of New Zealand Stuart Nash has confirmed that the country will start collecting Goods and Service Tax on all online purchases.

Currently, any online purchase made from an overseas retailer are not levied with the country’s 15 percent GST, if the purchase price is less than NZD 400.

The tax is typically collected at the border, as the goods come into the country.

The government now hopes to enact a tax on all goods coming into the country, regardless of the price.

The new measure is meant to level the playing field between local retailers who have to pay the tax, and foreign businesses which can ignore the charge.

Retail NZ, an advocacy group for businesses in New Zealand, has said that the tax could raise as much as NZD 235 million in its first year, and up to NZD 935 million per year within nine years’ time.

However, despite the promise to introduce the tax, the Minister was not able to provide any technical details or an implementation timeline.