New Zealand bike prices WTF

[clint640]

Bickering about GST is amusing, same as with 'ol Harvey in Oz recently. People aren't buying stuff from overseas to save 15% GST, it's more like 30%+ on any stuff I've bothered to bring in. Dodging the GST now & then is just a nice bonus.

Cheers
Clint

[imdying]

Bickering about GST is amusing, same as with 'ol Harvey in Oz recently. People aren't buying stuff from overseas to save 15% GST, it's more like 30%+ on any stuff I've bothered to bring in. Dodging the GST now & then is just a nice bonus.

Basically.... yeah. It does show us that the industry chooses not understand the real problem.

[Quasievil]

Basically.... yeah. It does show us that the industry chooses not understand the real problem.

Whats that?
The only problem in the industry is computers, and the world online buying environment which makes it very diffulcult for NZ retailers to compete in.

We have a small market, we have low product turn over, we have high import costs and with that we are expected to compete with countries who have the opposite ? and of course when we cant compete many bitch and moan about the prices in NZ to justify their off shore purchases which worsen the situation for the NZ retailer.

Its a diffulcult situation and as a "retailer" one that wont go away, so its a case of refining, developing your market offer and frankly getting over it as this situation is permanent ..............either that or go under.

From my perspective and my business Im refining it and changing the product offer that we market, Im lucky that we got rid of the warehouse a few years back and stripped out costs so we can run on the smell of an oily rag otherwise we would have gone ages ago.

[imdying]

Whats that?

That people don't buy overseas to dodge a little GST, they do it do pay a lot less for the item itself.

I've looked at the Handroids on your site, and I'd wager you sell a few of them? Partially because they're awesome, and partially because you haven't priced yourself out of the market. In other words, I'd rather buy them from you as the local distributor (so I can get the right size without fuss... that's you, adding value) and given you're not a million miles away from the price I can get them from overseas, why wouldn't I!

[Quasievil]

That people don't buy overseas to dodge a little GST, they do it do pay a lot less for the item itself.

Yes thats a fact and who can blame them for it, its sad tho as it does hurt the industry, but thats the way of the jungle, nothing will change it.

I've looked at the Handroids on your site, and I'd wager you sell a few of them? Partially because they're awesome, and partially because you haven't priced yourself out of the market. In other words, I'd rather buy them from you as the local distributor (so I can get the right size without fuss... that's you, adding value) and given you're not a million miles away from the price I can get them from overseas, why wouldn't I!

We priced them to compete with the international Market price...... ish there isnt a gain buying KNOX offshore (not much anyway)
so what size do you want ?

[Robert Taylor]

My Interpretation of your previous comment "GST is refundable all you have to do is claim" was you get it all back, this isnt the case, you may get a refund you may have to pay GST, it depends of course on GST spent and GST received and the difference

so we have no argument I suspect

Plus of course the cost of claiming some of it back.

[Robert Taylor]

Gee Robert you arent up with the rules and regulations around importing as well.
The exact same rules regarding gst, clearance charges, thresholds for gst etc
apply to both business and private individuals

Or maybe you do know this but are not above spreading a little misinformation to bolster your argument?
No you wouldnt do that would you?

The reality in practice is often quite different. If you are a bonafide businees your overseas purchasing transactions will almost always go through a customs broker so you will pay clearance charges, port fees and gst on all transactions including the fob value of the goods. You dont try and avoid it.
As for the assertion that I might be trying to spread misinformation I think you need to go back to the startline and rethink. Ive only been guilty of having the temerity to look at the flipside of internet buying. If at one day in the future YOUR employment and the nice comfortable world you live in is threatened by the ramifications of the internet DONT come bleating to me.
Please understand that Im not bleating as such, Im pointing out inequities that are occuring. My business works around that, we have adapted

[Robert Taylor]

Bickering about GST is amusing, same as with 'ol Harvey in Oz recently. People aren't buying stuff from overseas to save 15% GST, it's more like 30%+ on any stuff I've bothered to bring in. Dodging the GST now & then is just a nice bonus.

Cheers
Clint

Note that not all NZ businesses have prices that are hugely different to those currently distorted by currency rates. I think it would be wrong to tar all NZ businesses with the same brush.

[SS90]

I guess you dont import goods for a business. Or if you do you wont be very good at your job.

The gst is refundable, you just have to claim it on your gst return

To put this into context... The thread started as a question as to why bike prices are higher in NZ.
Vehicles Imported into NZ are not subject to a duty, they are however, subject G.S.T, which, in the case of imported vehicles, is not recoverable.... In effect, a duty, but by another name.

[PeeJay]

To put this into context... The thread started as a question as to why bike prices are higher in NZ.
Vehicles Imported into NZ are not subject to a duty, they are however, subject G.S.T, which, in the case of imported vehicles, is not recoverable.... In effect, a duty, but by another name.

Your original post regarding business and gst


This is somwthing that your average punter does not get.... Importers pay GST on goods, and, this is non refundable.... in effect a duty, just by another name.

One of the main reasons privately imported parts come in cheaper.


You dont really know how gst works do you

From NZ customs website

Should I have you clear the vehicle in my own
name or under a company name?
If you use a GST registered company name, you
may be able to claim back any GST paid from Inland Revenue.

Provided the purchase is business related you will be entitled to a gst refund.
If its for personal use and you are just trying it on, and IRD thinks this, you wont be getting the gst back

[PeeJay]

The reality in practice is often quite different. If you are a bonafide businees your overseas purchasing transactions will almost always go through a customs broker so you will pay clearance charges, port fees and gst on all transactions including the fob value of the goods. You dont try and avoid it.
As for the assertion that I might be trying to spread misinformation I think you need to go back to the startline and rethink. Ive only been guilty of having the temerity to look at the flipside of internet buying. If at one day in the future YOUR employment and the nice comfortable world you live in is threatened by the ramifications of the internet DONT come bleating to me.
Please understand that Im not bleating as such, Im pointing out inequities that are occuring. My business works around that, we have adapted

Your whole argument seems to be based around the false assertion that private imports have some sort of advantage over business imports.
In fact the opposite is true.
All import charges your business incurs are tax deductible, no such luck for a private importer
All gst your business pays is refunded, no such luck for a private importer

Are these examples of the inequities that are occuring?

Misinformation? because you dont tell the whole story
eg business' have to pay gst is one of your favourites
True, but after paying it IRD will give it back. Slip your mind?
"Plus of course the cost of claiming some of it back"
Care to share with the great unwashed the "costs" involved with claiming?
Electricity to run your computer? or another half truth?

Your emotive plug for everyday kiwis and their jobs, more BS with no facts to back anything back.

If your "reality in practice is often quite different" perhaps you should get hold of your broker and customs and make sure your imports are being correctly assessed. The regulations are all straightforward, exactly the same for you and your business as they are for me and my business.
Our "reality" isnt different
We have no problem claiming back gst we have been charged.

Instead of getting to the nub of the problem, its easier to blame
the "internet"
the government
parasite NZ'ers who dare to shop around
cost of doing business in NZ
people on the dole
gst
overseas business' selling to anyone
believing that being an "authorised" importer/dealer, confers some sort of right to control the market in "your" area.

In typical kiwi fashion, its always someone elses fault.
Do you and lots of other retailers want to know why 1000's of NZers' shop online?
Look in the mirror

[Quasievil]

PeeJay you are coming across a tad agro to RT dude, what are you implying here ?

private people dont pay GST for goods under $400 a business would have rocks in their head to import such small volumes and therefore pay a higher freight rate per unit. that might be the argument?

[Blackflagged]

Far more likely to get stop at customs if addressed to a business name.And if stopped on ems, business pay an extra customs clearance charge around $100 that private people don`t.

But there`s many threads on here with the same thing whinging.Wasting your breath.
Tax Tax Tax is hidden every were.

[imdying]

Far more likely to get stop at customs if addressed to a business.

I used to believe that also, but I get everything sent to work now because it never attracts customs charges. Weird I know, but good to know in any case.

[Blackflagged]

Ok, my experience has been opposite.