Quick help needed, importing from UK

[colsan1]

Need a quick reply if anyone can help.
We're planning on moving over to nz in the next few months and i'm bringing a bike with me.
I've got an offer to change my bike for a triumph 955 daytona, however, someone mentioned that if i've had a bike for less than
6 months when its imported to nz i would have to pay extra import duty on it. something to do with importing for profit (buying and selling on when i got there)
does anyone know if this it true and if so what would the extra duty be?
cheers
col

[Mully]

Hi Col,

There is no Duty on motorcycles into NZ (no manufacturing industry to protect).

If you have owned and used the vehicle for at least one year, you can approach NZ Customs to complete a Memorandun of Understanding. Basically, this prevents you from needing to stump up with the GST (NZ VAT) of 12.5% of the value of the bike, plus a share of the Frieght and Insurance amount (CIF value). However, you will need to hang onto the bike for two years or else they will ping you for the GST (unless you suffer extreme financial hardship or prang it).

More information is here: http://www.customs.govt.nz/traveller...rges+Apply.htm
Any dramas, please let me know.

Cheers,
Marcus

[Jonty]

I off over there soon, wanna trade for a CBR 600

[ambler]

I am looking at doing this in the near future too, and I must say, what a totally arbitrary system of deciding taxes. Why do I have to pay tax on the shipping and insurance costs?
Seems like they just pull numbers out of their arse for other stuff too
http://www.customs.govt.nz/importers...ms+Charges.htm I might have learnt it at school, but can someone remind me why there are a hundred different ratings for alcoholic beverages, and why only alcoholic ones, whats the big deal about booze?

Mully, I was under the impression that the "owning for one year before" or "owning for two years afterwards" are not both necessary, only one or the other. So if I own a bike here for a year and then take it to NZ I can sell immediately with no GST... but perhaps I'm wrong. Judging by the way they want to screw you over for everything else, it does seem too optimistic eh.

Either way it's very annoying, because here in Tokyo I want a smaller bike for the crowded city streets, then when I go back to NZ I will want a bigger one for long trips, so the natural thing to do is trade up just before I go back, but then I get slapped by biggum tax man. No fair

Edit: ok I checked your link and you are right. How the hell am I supposed to know if I will be selling the vehicle within two years or not?? </rant>

[gsp0702]

Having just imported a bike from the UK, before NZ customs would release said bike i had to sign an undertaking that i would either keep the bike for 2years or should i sell it pay GST on it, and amount of GST to pay is stated on relevant form. I believe this is pro-rated so if i keep it a year and then sell i would pay the GST due not the whole sum.

Also my understanding is if i had owned the bike for less than 12 monthes the GST would have been due when the vehicle entered NZ.

[Griff]

Having just imported a bike from the UK, before NZ customs would release said bike i had to sign an undertaking that i would either keep the bike for 2years or should i sell it pay GST on it, and amount of GST to pay is stated on relevant form. I believe this is pro-rated so if i keep it a year and then sell i would pay the GST due not the whole sum.

Also my understanding is if i had owned the bike for less than 12 monthes the GST would have been due when the vehicle entered NZ.

Absolutely the same thing happened for me.

Also had to supply Customs with a NZ valuation letter.
The Guys at Red Baron did a good one for me.

[ambler]

I see.
So Griff, I take it you had no receipt from purchase outside NZ to use as valuation?
How about gsp0702, did you have a receipt from the UK which you could use to base the GST price on?

[gsp0702]

I had the original dealer receipt for the purchase of mine, so no need for valuation letter.

[gsp0702]

Personally i would probably prefer to have paid the GST, and claim it back if i didnt sell cos I know if i say to my wife I would like to swap the bike i will get oh but you'll owe the tax man gst. And two years is a long time.

[Griff]

I see.
So Griff, I take it you had no receipt from purchase outside NZ to use as valuation?
How about gsp0702, did you have a receipt from the UK which you could use to base the GST price on?

No original receipt, but used the remainder of my UK Reg document to show ownership. I would advise stringly on not getting a UK valuation.

When I landed, my bike turned up 3 months after (with Anglo-Pacific).
They helped me through the minimal paperwork with Customs.
I will PM some more...

[gsp0702]

Uk valuation or not probably slightly dependant on GBP/NZ$ exchange rate but as bike prices in NZ seem quite inflated and UK prices for secondhand bikes pretty low i would expect your GST liability to be less with a UK valuation than an NZ one. But thats just my personal opinion.

[betti]

the lower the value of the receipt you have, the less gst you'll pay.
Simple really.
The longer you have owned the bike, you will deduct depreciation from the original purchase price, up to a maximum of 75%, so if you have owned it a while gst is negligible really, I paid $150, it was easier than a bunch of paperwork!.

[ambler]

Thanks Griff and betti
I will be bringing from Japan so I very much doubt the NZ valuation will be less than here - otherwise I wouldnt be bothering to import.
That's nice to know about the depreciation too, a couple of my bikes I have had for around 2 years...

[Mully]

Personally i would probably prefer to have paid the GST, and claim it back if i didnt sell cos I know if i say to my wife I would like to swap the bike i will get oh but you'll owe the tax man gst. And two years is a long time.

Mate, you wouldn't be able to claim it back unless you were a company registered for GST, in which case, Mr IRD would have some difficult questions to answer about why your company needed to import a bike.

And of course, you'd have to pay GST on whatever you sold it for. So the bastards get you either way.

You could, of course, just buy another bike while you wait for two years.

[Mully]

I will be bringing from Japan so I very much doubt the NZ valuation will be less than here - otherwise I wouldnt be bothering to import.

I wouldn't run away with that idea. Value of vehicles in JP is about 50% of the dealer value here.

Get it valued (in writing) in Japan, and then from a NZ Dealer and use the cheapest one.