NZ TAX & DUTY REQUIREMENTS

GST

The GST threshold for New Zealand is NZD0 if you are sending goods valued over NZD60,000 per annum.

The New Zealand’s Inland Revenue Department (IRD) has a NZD 60,000 per annum revenue threshold for retailers selling goods to New Zealand consumers regardless of where the retailer is based.  If you ship items to NZ totalling over NZD 60,000 in a consecutive 12-month period, the IRD are legally obligated to collect 15% Goods and Services Tax (GST) on the commercial value of the goods.   GST is also payable on the duty amount plus freight (in NZD).

DUTY

The Duty threshold for New Zealand is currently set to NZD1,000.

Duty may be payable on items where the value of shipments going to one address on any day is above NZD1,000. When this occurs freight will be held and assessed.  The amount of duty payable will depend on the item(s) shipped and their value.

As the seller of the goods, you’ll need to:

As the seller of the goods valued at or above NZD1,000, you’ll need:

• Apply to the NZ IRD for an IRD Number

  The IRD Number needs to be provided to your shipping provider if you are sending over NZD 60,000 per annum.  Your IRD number identifies your business for all its tax related events. It is unique to your business.

  Find out more or apply for an IRD here.

   

• Collect and pay GST directly to IRD in New Zealand

  NZ IRD will calculate the GST payable and request that you pay periodically. The retailer will need to collect GST from the customer at shopping cart level.

• A Supplier Code

  If you’re shipping with SEKO, our clearance broker will create the supplier code for you.  To do that they’ll need you to supply a company letterhead which must have your company name, phone number, address and Australian Business Number or IRD, if applicable.

   

• An Importer Code (Client Code)

  To create an importer code, you must have an NZ entity. You can also use the recipient’s importer code.

COLLECTION OF TAXES AND DUTIES

SEKO suggests retailers collect taxes and duties from customers at shopping cart level.  An example of platforms to facilitate these services are Zonos, Shopify, Eurora and Avalara. Retailers can then use a DDP service to maximise customer experience.

WITH SEKO, RETAILERS HAVE THE FOLLOWING NZ SERVICE OPTIONS...

SEKO Delivered Duty Unpaid (DDU/DAP)

Parcels of high value (over the Duty threshold) will be stopped at origin (Sydney) and the retailer's customer will be notified of GST and Duty charges.  The parcel is held until payment is received from the end customer.  If the customer rejects the payment, the item will be returned to the retailer.

SEKO Delivered Duty Paid (DDP)

All tax and Duty charges are invoiced to the retailer and the parcels are not stopped.  A reminder that for parcels over NZD1,000 an Importer and Client code will be required.