Why has the GST law changed to include GST on LVG?

This legislation is aimed at goods sent to consumers and bought directly from international suppliers and some intermediaries. The majority of GST paid in business to business (B2B) transactions is claimed back when goods are on-sold to the end consumer.

The new GST law is designed so that:

• Businesses will not charge GST on a sale when GST will be charged at the border, because an item is either   
  • worth over NZD$1,000
  • a tobacco product
  • an alcoholic beverage
• under the current model, there will be no changes to GST payment on goods delivered for business purposes to business addresses (B2B businesses) and Recipient Business will be responsible for filing GST return on the Imported goods.