Ranting about NZ retailers

[FastFred]

As usual, we have a teenager with no experience thinking he knows everything once again. You are, of course, as always, wrong.

GST on imported vehicles is not recoverable, it is, simply a duty, under the guise of GST, there is no duty on imported vehicles, but there is GST, and in the case of imported vehicles, this GST is not recoverable.

I was agreeing with you and am a little surprised by your over reaction .....

SS90, paranoia is not normal, and resorting to abuse when you think you are being challenged shows some inner problem.

GST paid to customs not recoverable for an importer?????

Yes it is. If you had followed my earlier advice to do some research and develop a knowledge of the accounting principles involved you would have seen that the GST paid by a GST registered importer on the expense of importing is claimed back against the GST received on the sale of the imported good.

So yes an importer claims the GST paid to Customs back from the IRD.

GST is administered by IRD not customs
Customs charge you gst on your import, IRD refund it.

But you actually have to ask IRD not Customs

SS90 your argument would sound less like wiffile if you could post a reference or two to back up your opinions I have posted a ref below to back myself up lets see if you can do the same.

http://www.ird.govt.nz/gst/gst-registering/gst-about/

How does GST work?

GST is a tax that you collect on behalf of the government. You charge GST in your sales and income and claim it back for your purchases and expenses. You then calculate the difference in your GST return to work out if you have to make a GST payment to us or if your receive a GST refund from us.

[SS90]

GST paid to customs not recoverable for an importer?????

Yes it is. If you had followed my earlier advice to do some research and develop a knowledge of the accounting principles involved you would have seen that the GST paid by a GST registered importer on the expense of importing is claimed back against the GST received on the sale of the imported good.

So yes an importer claims the GST paid to Customs back from the IRD.

SS90 your argument would sound less like wiffile if you could post a reference or two to back up your opinions I have posted a ref below to back myself up lets see if you can do the same.

http://www.ird.govt.nz/gst/gst-registering/gst-about/

How does GST work?

GST is a tax that you collect on behalf of the government. You charge GST in your sales and income and claim it back for your purchases and expenses. You then calculate the difference in your GST return to work out if you have to make a GST payment to us or if your receive a GST refund from us.

Once again a pimply wnake roof a teenager gets it wrong

GST on imported vehicles is not recoverable.

Go one then smart ass, start a company, import vehicles into New Zealand and claim back that GST payment, go on, prove me wrong.
If you followed the link I posted a few back, you will see the words on the customs site, GST on imported vehicles IS NOT RECOVERABLE.

[FastFred]

Once again a pimply wnake roof a teenager gets it wrong

GST on imported vehicles is not recoverable. Go one then smart ass, prove me wrong.

I have already shown you to be wrong by referencing the Govt site.

And your abuse just makes you look like a nutter...

[SS90]

So yes, one of the reasons imported bikes are more expensive in NZ is that the 15% GST (and 15% of the shipping costs) are not recoverable.

This is one of the reasons bike prices in NZ are less favorable to some other countries.
Ironically, when you buy bikes from Japan, if the were not produced in Japan (like Ducati) they would have been subject to an incoming Tarrif, which part of is the refunded to the exporting company in Japan.

Its not much (as low as the equivalent of a couple of hundred dollars in most cases), but in a container of 30 bikes, it's a slight double nibble at the cookie for exporters.

[FastFred]

So yes, one of the reasons imported bikes are more expensive in NZ is that the 15% GST (and 15% of the shipping costs) are not recoverable.

Nope, you realy should leave this alone....

http://www.customs.govt.nz/features/.../default.aspx#

To down to "refunds of duty for commercial importers."

Peejay, if you are going to tell fibs, make them believable and if you are cheating on your tax, don't post it on the web!

As your wrong again SS90 or more worryingly your being deliberately deceptive.

Its talking GST refunds for damaged or re exported goods. No where does it say you cant claim the GST paid to customs for a motor vehicle imported for resale by a GST registered business.

Taken from the Govt web site you posted the link too.

Refunds of duty for commercial importers.

You can apply for a refund of duty when:

duty is paid in error
a concession is later approved for the goods
the goods are of faulty manufacture
the goods were in a damaged or deteriorated condition prior to leaving Customs' control
the goods were destroyed, pillaged or lost prior to leaving Customs' control.

To apply for a refund, complete an Application for refund of revenue (NZCS 223) form and send it, along with supporting documentation, to the Customs office where the goods were cleared. Refunds will not be issued where the amount of the refund is NZ$50 or less.

The following rules apply for refunds:

If you use the broker deferred credit facility or have paid by cash, your refund will be made by cheque direct to you.
If you are paying cash, and your payment has not yet been received, we will adjust your entry to reflect the correct charges.
If you use the deferred payment scheme your account will be credited with the amount directly.

GST

If you are registered for GST purposes, you will not receive refunds of GST. The only exception is for those importers who are on the deferred payment scheme where your refund application for adjustment is processed prior to the due date of payment. In this instance, the GST adjustment can be made to your account.

If you have applied for a GST refund and use a broker deferred credit facility, your broker will need to lodge an adjustment application with us. Applications need to be made within one calendar month from the date of entry clearance. For more information contact the National Credit Control Unit in Auckland, phone +64 9 359 6521.

For more information on refunds of duty and GST contact the Trade Assurance section of your local Customs office.​

[SS90]

Nope, you realy should leave this alone....



Wrong again SS90 or more worryingly your being deliberately deceptive. Its talking GST refunds for damaged or re exported goods. No where does it say you cant claim the GST paid to customs for a motor vehicle imported for resale by a GST registered business.

Taken from the Govt web site.

You can apply for a refund of duty when:

duty is paid in error
a concession is later approved for the goods
the goods are of faulty manufacture
the goods were in a damaged or deteriorated condition prior to leaving Customs' control
the goods were destroyed, pillaged or lost prior to leaving Customs' control.

To apply for a refund, complete an Application for refund of revenue (NZCS 223) form and send it, along with supporting documentation, to the Customs office where the goods were cleared. Refunds will not be issued where the amount of the refund is NZ$50 or less.

The following rules apply for refunds:

If you use the broker deferred credit facility or have paid by cash, your refund will be made by cheque direct to you.
If you are paying cash, and your payment has not yet been received, we will adjust your entry to reflect the correct charges.
If you use the deferred payment scheme your account will be credited with the amount directly.

GST

If you are registered for GST purposes, you will not receive refunds of GST. The only exception is for those importers who are on the deferred payment scheme where your refund application for adjustment is processed prior to the due date of payment. In this instance, the GST adjustment can be made to your account.

If you have applied for a GST refund and use a broker deferred credit facility, your broker will need to lodge an adjustment application with us. Applications need to be made within one calendar month from the date of entry clearance. For more information contact the National Credit Control Unit in Auckland, phone +64 9 359 6521.

For more information on refunds of duty and GST contact the Trade Assurance section of your local Customs office.​

did you actually read this?

Ill give you a wee hand

"If you are registered for GST purposes, you will not receive refunds of GST. The only exception is for those importers who are on the deferred payment scheme where your refund application for adjustment is processed prior to the due date of payment. In this instance, the GST adjustment can be made to your account. "

[Edbear]

GST paid to customs not recoverable for an importer?????

Yes it is. If you had followed my earlier advice to do some research and develop a knowledge of the accounting principles involved you would have seen that the GST paid by a GST registered importer on the expense of importing is claimed back against the GST received on the sale of the imported good.

So yes an importer claims the GST paid to Customs back from the IRD.

SS90 your argument would sound less like wiffile if you could post a reference or two to back up your opinions I have posted a ref below to back myself up lets see if you can do the same.

http://www.ird.govt.nz/gst/gst-registering/gst-about/

How does GST work?

GST is a tax that you collect on behalf of the government. You charge GST in your sales and income and claim it back for your purchases and expenses. You then calculate the difference in your GST return to work out if you have to make a GST payment to us or if your receive a GST refund from us.

did you actually read this?

Ill give you a wee hand

"If you are registered for GST purposes, you will not receive refunds of GST. The only exception is for those importers who are on the deferred payment scheme where your refund application for adjustment is processed prior to the due date of payment. In this instance, the GST adjustment can be made to your account. "

Sorry SS90, but you misunderstand the legislation.

[SS90]

Sorry SS90, but you misunderstand the legislation.

No I don't mate, I imported bikes into NZ for some years, and now into Austria and Germany. i have a good understanding.
GST is not recoverable on imported vehicles.

[FastFred]

:"If you are registered for GST purposes, you will not receive refunds of GST. The only exception is for those importers who are on the deferred payment scheme

This page is about claiming for damaged goods or goods imported and then re exported and does not mention motor vehicles imported into NZ for re sale.

You are starting to worry me, either you don't know what your on about, or you can't stop talking rubbish when everything is starting to point to you being wrong.

[Edbear]

No I don't mate, I imported bikes into NZ for some years, and now into Austria and Germany. i have a good understanding.
GST is not recoverable on imported vehicles.

A good friend of mine is a car importer, has been for as long as I've known him which is nearly 30 years. I will ask him this afternoon and get back to you.

[FastFred]

No I don't mate, I imported bikes into NZ for some years, and now into Austria and Germany. i have a good understanding.

GST is not recoverable on imported vehicles.

And yet you cant actually post a link to a Govt web page that actually says that ....... ... now that's odd.

[SS90]

A good friend of mine is a car importer, has been for as long as I've known him which is nearly 30 years. I will ask him this afternoon and get back to you.

Great, I love it when other people from the industry give their input!

[FastFred]

I imported bikes into NZ for some years, and now into Austria and Germany. i have a good understanding. GST is not recoverable on imported vehicles.

Sorry SS90, but you misunderstand the legislation.

Misunderstands the legislation!!! possibly, certainly posted a link to the wrong piece of legislation.

Great, I love it when other people from the industry give their input!

Yes lets hear from Edbear about what his friend has to say, someone who has been successful in the industry and is responsible for paying the bills, they will know for sure.

[Edbear]

The short answer is yes, but as always it is not so simple. If he imports a car, he pays GST on the value of the car and on the fees that attract NZ GST, as GST is a NZ tax. This amount is claimable as it is with me importing the batteries. They are goods and subject to GST and that amount is entered into your GST return as GST already paid, therefore counts against any GST due. Same with my fees, I get charged GST so it is claimable.

However, with vehicles there are a range of charges and fees that the Accountant will go through and claim what is claimable.

Basically it seems that if NZ charges GST, that payment is claimable. Sometimes it is not so clear, hence the need for an accountant.

[Robert Taylor]

The short answer is yes, but as always it is not so simple. If he imports a car, he pays GST on the value of the car and on the fees that attract NZ GST, as GST is a NZ tax. This amount is claimable as it is with me importing the batteries. They are goods and subject to GST and that amount is entered into your GST return as GST already paid, therefore counts against any GST due. Same with my fees, I get charged GST so it is claimable.

However, with vehicles there are a range of charges and fees that the Accountant will go through and claim what is claimable.

Basically it seems that if NZ charges GST, that payment is claimable. Sometimes it is not so clear, hence the need for an accountant.

Irrespective of this tax merry go round ( and the cost to business )that occurs there are several main points here:

1) Most if not all small businesses in NZ are struggling to maintain or achieve a reasonable operating surplus, because the cost of being in business is very high and you have to constantly jump through hoops. Many retailers are going to the wall and there will be more.

2) If a consumer pays gst as part of his purchase price when he buys goods from a store in NZ then why should he / she not have to always pay clearances and gst when the goods are imported privately? This is one of many reasons NZ businesses are disadvantaged in the current environment of open slather.

3) Its apparent that almost no-one cares that people are losing their jobs hand over fist in part because of this environment .