Someone please explain Customs' GST to me

[FROSTY:Me]

I guess if you buy through a gst-registered importer this whole thing goes away - because when they on sell it, they presumably claim back the gst they paid (whatever it was; it's now irrelevant), and charge you based on what they're selliing it for.

Richard

LMAO-the issue though doesn't "go away" --it just goes away in kiwi style--Hey its someone elses problem. SOMEONE still has to deal with it.

[imdying]

Dude Im not talking about the PURCHASE price beng at a fixed rate. That always floats unless you forward purchase currancy. I'm talking about the customs GST figure.
so I could score a really good foreighn echange but still get hammered by customs gst--its just strange

I know what you're talking about. The GST is a component of the cost of goods, and for bigger players that big money.

[Mully]

Just consider yourself lucky that cars aren't dutiable, Frosty.

[Naki Rat]

LMAO-the issue though doesn't "go away" --it just goes away in kiwi style--Hey its someone elses problem. SOMEONE still has to deal with it.

The only problem for the importer is that the import duty (if applicable) is based on the greater amount and is not refundable at the next GST balance date, like GST is.

We have this situation as we pay for our import shipments by PayPal so payment is immediate and the forex rate is set in stone at that time - done deal. With the volatility of the US$ in particular this makes for some inaccuracies in the rate that IRD uses but there's not a lot that can be done about it so just suck it up, though admittedly on the goods we import the import duty rates are only 10% at most.