The New Zealand government today introduced into parliament tax legislation imposing GST on low-value online sales, seeking to level the playing field between local retailers and offshore sellers.
The new rules would require offshore sellers to register, collect, and return New Zealand GST on goods valued at or below NZD 1,000 (~USD 654) supplied to consumers in New Zealand. GST on goods valued above NZD 1,000 would continue to be collected by customs when the goods enter New Zealand.
The new law would apply to offshore suppliers, like websites or online marketplaces, with annual New Zealand sales above the NZD 60,000 GST (~USD 41,500) registration threshold.
“The internet has opened up more markets for global companies but if they want to do business here they must follow the rules like everyone else. We’re not the first to introduce such a rule and eventually this will be the new reality of doing business,” said Revenue Minister Stuart Nash, who introduced the provision.
The proposed new rules would become effective October 2019.
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