The ‘Amazon’ Tax – What You Need to Know
For those of you with a penchant for online shopping from overseas websites, the new so-called ‘Amazon’ tax may make this a more costly exercise from October next year.
Starting from 1 October 2019, many overseas vendors of online goods will need to charge GST at the point of sale when the value of the goods is $400 or less. So, if you import items costing $400 or less, the overseas vendor may need to add 15% GST to your purchase. Purchases by NZ GST-registered businesses will be exempt from this new rule. There won’t be any change to the rules which apply to goods valued more than $400.
You can find out more information on this website: http://taxpolicy.ird.govt.nz/news/2018-05-01-gst-imported-low-value-goods-proposals-launched#statement