Move to make online buyers pay GST

[p.dath]

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10697859


Retailers in New Zealand will be watching closely the Australian campaign to have GST collected on privately imported goods...

And from an Australian web site:
http://www.zdnet.com.au/uproar-at-retailers-online-gst-campaign-339308281.htm

Brick-and-mortar retailers have already experienced considerable resistance against their campaign to have GST imposed on purchases under $1000 from overseas sites, with consumer groups and politicians weighing in against a change to the GST threshold...


It can only be a matter of time before everything has GST added that comes into the country.

[Quasievil]

Good, one less disadvantage for those in the trade :yes:

[sil3nt]

It will still be cheaper to buy from overseas.

[onearmedbandit]

LOLZ, I paid GST on all my parts I ordered recently and it was still under half the price of what I would've paid here in NZ.

15% doesn't worry me. 200% does...

[NinjaNanna]

Ebay was running a print advertising campaign in OZ before Christmas, the slogan read, "Browse it at Westfields, buy it on Ebay."


Now there was something very perverse about that, its that type of immoral shopper behavior that will see traditional retail and all of the jobs associated with it dissapear.

Sure buy online if you want but don't exploit the retailers that carry stock to reduce your risk of buying the wrong thing.

[bogan]

Ebay was running a print advertising campaign in OZ before Christmas, the slogan read, "Browse it at Westfields, buy it on Ebay."


Now there was something very perverse about that, its that type of immoral shopper behavior that will see traditional retail and all of the jobs associated with it dissapear.

Sure buy online if you want but don't exploit the retailers that carry stock to reduce your risk of buying the wrong thing.

agreed, thats pretty shit. Seen the poll results? pretty much a landslide for not paying GST, gotta wonder if there is an argument for that that doesn't contain "I just want cheap shit"

[p.dath]

agreed, thats pretty shit. Seen the poll results? pretty much a landslide for not paying GST, gotta wonder if there is an argument for that that doesn't contain "I just want cheap shit"

I bet if they ran a poll saying "would you like to pay personal income tax" it would also be a landslide result ...

[YellowDog]

Ebay was running a print advertising campaign in OZ before Christmas, the slogan read, "Browse it at Westfields, buy it on Ebay."


Now there was something very perverse about that, its that type of immoral shopper behavior that will see traditional retail and all of the jobs associated with it dissapear.

Sure buy online if you want but don't exploit the retailers that carry stock to reduce your risk of buying the wrong thing.

I can't really see what the issue is.

GST is presently payable on items of over $NZ400 imported. Items for resale would be of a higher value, so GST. Reduce the threashold to NZ$200 if the admin isn't too expensive. It won't remedy the actual problem.

If the item + NZ$100 shipping is still considerably cheaper than the NZ price, maybe the NZ traders should ask their suppliers to get real. Most would rather buy from local traders unless they feel the H U G E additional cost cannot be justified. IMO - Global pricing should not be so variable.

GBPound and NZ$ prices seem very cheap at the moment. NZ traders can buy even cheaper than 'Jo Public' can.

I'd quite like to buy a tanker load of fuel and sell it at $1.50 / litre rather than the rip off prices the oil companies are marking up.

If US$140 per barrel with a 0.68 NZ to US exchange rate = NZ$2.00 per litre, why does US$90 per barrel with a 0.77 NZ to US exchange rate also = NZ$2.00 per litre?

http://www.oil-price.net/

[Blackflagged]

Fuel in Bolivia`s cheap (subsidised) thing is people from across the boarder, buy it.So tax pays are subsidising neighbouring countrys. But the general Bolivian populus can`t see that, it`s a bad idea in the long run. Just the price of gas.

[Quasievil]

If US$140 per barrel with a 0.68 NZ to US exchange rate = NZ$2.00 per litre, why does US$90 per barrel with a 0.77 NZ to US exchange rate also = NZ$2.00 per litre?

http://www.oil-price.net/

Do you pour oil into your Car and or Bikes gas tank ? you should try Petrol mate, its much better.

Ya Muppet, it costs alot to dig the stuff out the ground and process it to a petrol suitable for the market.
Not to mention return on investment the exploration costs and numbers to get product to the market are staggering !!

[phill-k]

Do you pour oil into your Car and or Bikes gas tank ? you should try Petrol mate, its much better.

Ya Muppet, it costs alot to dig the stuff out the ground and process it to a petrol suitable for the market.
Not to mention return on investment the exploration costs and numbers to get product to the market are staggering !!

And don't forget the verious taxes our government add to the price of a ltr

[Swoop]

GST on EVERY item entering NZ?

That would be a nightmare to police and be a HUGE bureaucratic nightmare!
It's bound to happen then.:facepalm:

[imdying]

Sweet, no trouble. I buy things that are over the threshold value, pay my GST, and still pay less than half NZ price.

John Albertson must be some special kind of dick head if he believes those things.

[YellowDog]

Do you pour oil into your Car and or Bikes gas tank ? you should try Petrol mate, its much better.

Ya Muppet, it costs alot to dig the stuff out the ground and process it to a petrol suitable for the market.
Not to mention return on investment the exploration costs and numbers to get product to the market are staggering !!

Huh ?

It's all changed then and the price of our fuel is no longer related to the price of the traded stuff that comes out of the ground that is used to make it.

So it's the processing and distribution costs that have gone up to justify $2.00 per litre.

Glad you don't think you are being screwed.

[Blackflagged]

The Barrel price is Crude not even what you would think of as oil.

Petrol tax (Some of these price will change with the rise in crude)

When you last bought petrol, 59.129 cents per litre was collected by the government as taxes, duties and levies, made up of:

* 48.524 cents - National Land Transport Fund
* 9.90 cents - ACC Motor Vehicle Account
* 0.66 cents - Local Authorities Fuel Tax
* 0.045 cents - Petroleum or Engine Fuels Monitoring Levy

In addition, GST is collected on the overall price of fuel, which amounts to a 7.7 cents per litre "tax on taxes".

All fuels also pay an Emissions Trading Scheme charge (approximately 3 cents per litre).

http://www.aa.co.nz/about/issues/fuel-taxes-fines-charges/Pages/Petrol-tax.aspx

Watch this space they will be thinking up a new Tax.

[Quasievil]

Huh ?

It's all changed then and the price of our fuel is no longer related to the price of the traded stuff that comes out of the ground that is used to make it.

So it's the processing and distribution costs that have gone up to justify $2.00 per litre.

Glad you don't think you are being screwed.

Nah Im not getting screwed, I work for............ well someone, and get free gas nah nah na na na !!

[Mully]

GST on EVERY item entering NZ?

That would be a nightmare to police and be a HUGE bureaucratic nightmare!
It's bound to happen then.:facepalm:

And people will pay people like me to sort it out and clear their cargo - I'm all in favour of it.

TBH, in the age of the internetz, the De minimus threshold is getting an arse-raping by every Tom, Dick and Harry.

Sooner or later, the Gummint was bound to tighten up the rules.

[Blackflagged]

Govt should really charge private individuals the customs transaction fees they charge businesses as well.To really level the field.

[Mully]

Govt should really charge private individuals the customs transaction fees they charge businesses as well.To really level the field.

They are.

I think it started in July - any Formal Entry (i.e. not a Write-off) pays the ITF

[Swoop]

And people will pay people like me to sort it out and clear their cargo - I'm all in favour of it.
Do you clear items like a book, purchased from The Book Depository in the UK?
One book at approx $15 value.
Is it really worth the hassle?

[Mully]

Do you clear items like a book, purchased from The Book Depository in the UK?
One book at approx $15 value.
Is it really worth the hassle?

I will.

If someone will pay my horrendous fee for doing so.

I suspect items like that (in the event they do away with Write-offs) will become a DIY Clearance type thing.

It wouldn't be hard to write the software to do it.

[Coldrider]

How does the collection of GST on the importation of goods solve any of the problems the retailers are complaining about in the article?

[Mully]

How does the collection of GST on the importation of goods solve any of the problems the retailers are complaining about in the article?

It's the whole "Even playing field" thing - although there's a doozy of a thread in General that shows the difference is usually far more than 15% anyway.

[Coldrider]

It's the whole "Even playing field" thing - although there's a doozy of a thread in General that shows the difference is usually far more than 15% anyway.Ah, but the GST is of no consequence to the retailer, as the consumer pays the GST.
What they are really complaining about they can't actually state.

[HQfiend]

So my question is, should it apply to goods, parts or materials that are not available in NZ to start with? What if you are restoring an American car and can only get parts from the states, or in my case an exhaust system that was never released here and is now obsolete?
Is that "fair" on the consumer or does it benefit NZ retailers?

All it will do is continue to line the government coffers and send retailers that are overcharging to the wall.

Knee jerk reaction from some to try and combat the recession which will be ineffective in the long run.

[Coldrider]

So my question is, should it apply to goods, parts or materials that are not available in NZ to start with? What if you are restoring an American car and can only get parts from the states, or in my case an exhaust system that was never released here and is now obsolete?
Is that "fair" on the consumer or does it benefit NZ retailers?

All it will do is continue to line the government coffers and send retailers that are overcharging to the wall.

Knee jerk reaction from some to try and combat the recession which will be ineffective in the long run.I do what is easiest and legal.
If it easier to purchase items from the net, and have shipped to my door, I don't have to go to a store, order goods, return to pick them up some time later, and it is legit, I do it.

I'm not doing retailers any favours in the long run by letting them rape my wallet.

[Headbanger]

Its an excellent idea, as long as all those whiny bitch NZ retailers then STFU when we continue to shop overseas for better prices and service.

[Coldrider]

Retailers in New Zealand will be watching closely the Australian campaign to have GST collected on privately imported goods...

Are retailers also watching closely that Australian wages are generally 40% higher than those paid in NZ, and will have to act accordingly also? ah thought not.

[sunhuntin]

when it comes to electronics and important bits to do with the bike, i will always go local. but for books, dvds and other low risk items, i will go where the price is better. most of that time, that leads me ebay or amazon. very rarely do i buy from trademe now, though i do sell a fair bit.

[Jantar]

There is a very simple and cost effective way to apply GST to anything bought offshore. Just take away the idea of collecting it at the border and add 15% to all foreign exchange transactions.

[HQfiend]

There is a very simple and cost effective way to apply GST to anything bought offshore. Just take away the idea of collecting it at the border and add 15% to all foreign exchange transactions.

So you want the gobomint checking up on your paypal/bank accounts then? You would allow them access to your income both declared and undeclared?:shit:

[gammaguy]

Ebay was running a print advertising campaign in OZ before Christmas, the slogan read, "Browse it at Westfields, buy it on Ebay."


Now there was something very perverse about that, its that type of immoral shopper behavior that will see traditional retail and all of the jobs associated with it dissapear.

Sure buy online if you want but don't exploit the retailers that carry stock to reduce your risk of buying the wrong thing.

get real

as the price of oil,transport and so many other things increase,cities become more crowded and simply getting about becomes more of a hassle(especially in NZ with its largely non existent public transport system and big distances between major centres),,the sales of online purchases can only increase.


In the USA alone sales online were up 20% this christmas


Its your choice,either jump on board the train of progress,or get run over by it.

[NinjaNanna]

get real

as the price of oil,transport and so many other things increase,cities become more crowded and simply getting about becomes more of a hassle(especially in NZ with its largely non existent public transport system and big distances between major centres),,the sales of online purchases can only increase.


In the USA alone sales online were up 20% this christmas


Its your choice,either jump on board the train of progress,or get run over by it.

You totally missed the point. I wasn't saying don't buy online, I was saying don't exploit stock carrying retailers to physically view items, when your intention is to buy it online anyway.

[scumdog]

It can only be a matter of time before everything has GST added that comes into the country.

Hmmm..went overseas, bought a car while there and shipped it to NZ.

Had to pay GST on the purchase price (converted to NZ $):mad:

And that was 5 years ago.

[scumdog]

There is a very simple and cost effective way to apply GST to anything bought offshore. Just take away the idea of collecting it at the border and add 15% to all foreign exchange transactions.

I've already found a way around that...:shifty::whistle:

[Jantar]

So you want the gobomint checking up on your paypal/bank accounts then? You would allow them access to your income both declared and undeclared?:shit:
They already do.

However I'm not advocating such a change, just stating how simple it would be to implement. When you buy something from overseas and pay via Paypal, do you honestly believe that the exact money is imediately transferred in a single transaction from your bank account to theirs? Think about it for a moment. What happens is that the transaction is approved at both ends imediately and are taken from you account and paid to the sellers, but the funds don't actually move until the bankers make interbank settlements, usually at a set time each day. It is these interbank settlements that the government would have access to and be taxed. The bank would simply include the GST amount in the exchange rate they charge you.

As Scumdog has already commented, there is a way around that, and that is to hold overseas funds and pay from that source.

[p.dath]

So my question is, should it apply to goods, parts or materials that are not available in NZ to start with? What if you are restoring an American car and can only get parts from the states, or in my case an exhaust system that was never released here and is now obsolete?
Is that "fair" on the consumer or does it benefit NZ retailers?


GST is for goods or services that are "consumed" in NZ. Remember that very few goods are available in NZ until someone brings them into the country for sale.


There is a very simple and cost effective way to apply GST to anything bought offshore. Just take away the idea of collecting it at the border and add 15% to all foreign exchange transactions.

What about if you are transferring money between two of your own personal banks accounts, say here and Australia? That would mean you would loose 15% of your funds.

It needs to remain being done at the border.

[p.dath]

In an interesting twist, the NZ Government is proposing to increase the GST "free" threshold to $400 (like Australia currently is) from $250.

http://www.stuff.co.nz/business/4524007/Customs-wants-to-ease-import-taxes



The change would make it cheaper for consumers to buy some items – such as shoes, clothes and jewellery valued at between $250 and $400 – from overseas websites. It would not affect the import of most items (including books and CDs) that are not subject to duty and for which the $400 threshold already applies.

Customs estimates the change would see an extra 22,000 items brought into the country tax-free each year and the Government forgoing about $2.2million in GST and duties.

[Coldrider]

In an interesting twist, the NZ Government is proposing to increase the GST "free" threshold to $400 (like Australia currently is) from $250.

http://www.stuff.co.nz/business/4524007/Customs-wants-to-ease-import-taxesthe best part
Customs said import duties were becoming less common. It had looked into raising the GST and duty-free threshold to $650 or $1000 but said a $400 threshold was not low compared with many countries and was "appropriate".

Customs is due to report to Customs Minister Maurice Williamson and he would "decide what steps will be taken".

[Grasshopperus]

Ah, but the GST is of no consequence to the retailer, as the consumer pays the GST.


Supply and demand.

There is less demand at a higher price => less sales. This is a consequence that the retailer has to deal with

[avgas]

I reckon it could get messy.
Say your an importer - does this mean you pay 2 x GST?
Once when it comes into the country (similar to the old gate surcharge) and then again when its sold?

[p.dath]

I reckon it could get messy.
Say your an importer - does this mean you pay 2 x GST?
Once when it comes into the country (similar to the old gate surcharge) and then again when its sold?

No. The first time you pay, the second time you collect it on behalf of the Government, and pay it with your GST return.

[yachtie10]

There is an issue in all this

When someone else buys you a present overseas and sends it to you
Should GSt be paid and if so buy whom?

[imdying]

When someone else buys you a present overseas and sends it to you, should GST be paid, and if so, by whom?If the sender is a NZ resident, then the sender should be paying it. If not, nobody should pay it.

/edit: Personal repsonse to the hypothetical question, not what actually happens as of this date

[p.dath]

There is an issue in all this

When someone else buys you a present overseas and sends it to you
Should GSt be paid and if so buy whom?

Currently GST is due if it is over the threshold, and the service/product is consumed in NZ.

The person doing the shipping can pay the GST in advance, otherwise the receiver has to pay before receiving the goods.


So it just depends if the person giving the present also wants to give you the GST.

[yachtie10]

Currently GST is due if it is over the threshold, and the service/product is consumed in NZ.

The person doing the shipping can pay the GST in advance, otherwise the receiver has to pay before receiving the goods.


So it just depends if the person giving the present also wants to give you the GST.

It brings up issues and loopholes is why i posted it

if granny knits you a cardy in england but doesnt know about the gst
would you be prepared to pay the gst to get it (especially when its valauation by customs is $120 and custom fees on top mean you have to pay 50 Dollars to pick up something you dont want thats worth fuck all to you)

my view is $400 is a reasonable threshold leave it alone

[willytheekid]

One thing I can't understand about NZ retailers (especially Bike shops in NZ)

If I require parts etc, I now look online & oversea's due to the exorbitant prices on most parts here in NZ.
My question is....If its so easy for me, as a consumer, to find drastically cheaper parts etc, have them delivered to my door (usually within a week) and pay the shipping & GST from oversea's, and still save HUGE amounts of money in the process....why do the retailers struggle to find such bargains and offer competitive prices in comparison to the rest of the world?
Don't get me wrong, I always "TRY" to support my local bike shop & parts guy, as I love the service and want them to stay in business...but I cant justify doing so at a 20%-200% mark up on international prices with no clear justification.

[yachtie10]

but I cant justify doing so at a 20%-200% mark up on international prices with no clear justification.

If you are importing for a 20% (including customs and gst if applicable)saving then :eek:

i would need to be saving over 40% to even consider it (what if the wrong thing arrives or if it fails)

i have done it and will do so while NZ importers expect to make huge markups for doing fuckall (not all importers).

Those who carry stock I will pay more but when i have too wait more than a few days then I will order myself from overseas if its way cheaper

[Morcs]

and there will still be loopholes around not paying GST on imported goods.

quite simply request the sender tick the 'gift' box on the customs declaration, and not include any invoicing or paperwork in the package, that can all go by emal