FAQ

GST Update for Low Value Goods Entering New Zealand Effective from 1 December 2019

Answers for the following questions have been provided by Aramex / Fastway as guidance only. Please note that you are recommended to view the Inland Revenue website for relevant information related to your business prior to making any decisions/changes to your systems.

What are the changes to New Zealand’s Low Value Threshold for goods entering the country?

Currently, all goods imported from overseas valued at NZD$400 or less (assuming no duty applies) are generally not subject to import GST. From 1 December 2019, New Zealand GST at 15% will apply to sales of low value goods (LVG) when made to non-business consumers in New Zealand. Threshold for Low Value Goods (LVG) entering New Zealand has been increased to NZD $1,000 for all goods (excluding alcohol & tobacco products) Therefore, with effect from 1 December 2019, New Zealand Customs will no longer collect any duty (including import GST) on consignments valued at NZD$1,000 or less, except for tobacco and alcohol. The onus to charge GST (and deposit with the IRD) on the low value goods, if any, would be on the overseas supplier / intermediary at the point of sale. The changes have been summarized below:

Prior to 1 December 2019 What’s new
As of 1 December 2019
  • Customs collects duty, GST and cost-recovery charges on imported parcels (consignments).
  • If the duty, GST and other import charges to be paid to Customs is under NZ$60, this is waived. However, if such amount is NZ$60 or more, you pay duty, GST and other charges like Import Entry Transaction Fee, Biosecurity System Entry Levy, as applicable.
  • In effect, for goods subject to duty (like footwear and clothing), Customs starts collecting duties, GST and other import charges once the value of the goods exceeds $226.
  • For general goods, Customs starts to collect GST and other import charges once the value exceeds $400.
  • The de minimus raises from NZ$226 / NZ$400 to $1,000 with the exception of tobacco and alcohol.
  • Responsibility to charge and deposit GST with the Inland Revenue on low value goods (i.e. goods with value up to NZ$1,000) transferred to overseas business supplier of goods.
  • Customs will collect duty, GST and other import charge (e.g. Import Entry Transaction Fee, Biosecurity System Entry Levy etc.) only on parcels valued over NZ$1,000.

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