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New laws means less bang for your buck

File image/SunLive.

Weekend sales have rolled over into Cyber Monday but new tax laws that came into force yesterday means overseas goods purchased online will be more expensive.

Products that cost less than $1000 are now subject to GST.

It's a move designed to make it easier for New Zealand companies to compete with massive corporations like Amazon - who up until Sunday didn't have to pay the tax.

Greg Harford from Retail NZ told Morning Report it didn't make sense to only charge GST domestically.

"It's absolutely right that everyone playing in the New Zealand market plays by the same set of rules and pays the same taxes."

But it's important to remember GST was already being charged at the border in some cases, he says.

"Some people would have been getting nasty surprises if they ordered a $300 pair of shoes, that product should have been previously taken aside by customs, they would have charged GST plus a $50 processing fee on top of it, so actually for those people it should be a more seamless process."

New Zealand isn't the only country that charges tax on incoming goods, he says.

"The big retailers are already complying with these laws internationally and there's no reason why they wouldn't here."

-RNZ.

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get rid

Posted on 03-12-2019 14:15 | By

get this labour government at the next election, most overseas buying is becourse you cannot buy it here, also from experience the mark up by nz retailers is horrific, 300 to 400 % mark up total rip off. i saw an item on the internet $45 nz dollar checked the nz retailer same item with him, would have to get it in (how much) answer $385,plus gst. more tax bite for this government for all its promises, lets get rid

Simply another tax for the government...

Posted on 02-12-2019 21:55 | By groutby

....no more, no less and here’s why: The majority of purchases made overseas cannot be purchased in NZ at ANY cost, let alone the vast ’mark up’ prices which would be applied should the retailer be bothered to order it for you, which ain’t goin’ to happen....way to hard for the benefit. Even with retailer prices they would never compete with buying the product/s) yourself, and have the knowledge it is ACTUALLY going to be ordered and knowing when it will arrive. I’m not going to say it’s right, but that’s how it works, this GST application will make no difference to the retail sector whatsoever apart from making items a little more expensive to import yourself therefore making a little less cash available for that purchaser to purchase other items within NZ, so even less sales for local retailers. As I said, tax grab and ’virtue signalling’...