Importing goods to sell in NZ.. (Tax?!?!)

[degrom]

How does tax on imported goods work?

I know you need to pay GST and import duty on imported stock.(But you can claim that back)

Can I claim back Tax I paid in another country or am I going to getting hit twice... (Paying tax to my suppliers country and paying local tax to the IRD?)

Any advice on the topic would be much appreciated.
Thanks.

[fireliv]

Try these websites

http://www.customs.govt.nz/importers...and+Levies.htm

www.business.govt.nz

Might help!

[degrom]

Try these websites

http://www.customs.govt.nz/importers...and+Levies.htm

www.business.govt.nz

Might help!

Thanks mate,

I have looked at the two sites and they are very informative..

They don't really say anything about other countries taxes and if I will get money back or if I need to pay the tax double.(If you need to pay double it potentially kills business hundreds of small businesses)

[Mully]

Mate, check with your supplier. They should be able to invoice you tax-free on an export invoice.

[Mully]

Oh, and you can only claim back Import GST, not Duty.

[degrom]

Thanks Mully,

I thought it would be something like that. So I need to pay Duty and GST to IRD.

Now I understand why imported goods are so dear.... But what else can you do if they don't manufacture it locally!?!?!?

[Mully]

Thanks Mully,

I thought it would be something like that. So I need to pay Duty and GST to IRD.

Now I understand why imported goods are so dear.... But what else can you do if they don't manufacture it locally!?!?!?

GST goes to the IRD, from whence you claim it back. Oh yes, I used "whence"

Duty goes to (I think) the government slush fund and is never seen again.

If your product isn't (and can't be) manufactured locally, you can apply for a concession with MED (which costs around $400 IIRC). Keep in mind that the $400 is not refundable if someone objects and your concession is declined.

Hope this helps.

[scracha]

If you're doing it regularly you get a TNT (or other carrier) account. They'll then send you the customs forms for you to get a customs code (or you can do it yourself). Yeah, you claim back the GST. Easy peezy.

[trumpy]

Check with customs, some goods are duty exempt. They will have a list you can check out.

[Reckless]

I get the odd thing for the Z1R and sometimes my MX bikes from the States and Aussy. Linkage kits and various bits where over $100-00 cheaper retail incl freight from BTO Sports USA. Delivered within 5 days!

All items should ship tax free. You pay GST on anything over $400-00 incl freight.
So $390-00 incl freight and you pay nothing, $410-00 incl freight and you pay GSt on the whole $410 not just the extra $10-00. If your purchase is $700-00 plus freight you may wanna make 2 orders for your stuff just work out if the extra freight kills the deal. You didn't say where you where buying from.
If your spending a big amount you'll just have to pay GST. The above is for personal use only so don't use a company name even as a delivery address.
I don't know what the law actually says but the above is what I have discovered from personal experiance. Hope this helps!

Ps I've never been charged duty so I gather Bike bits are duty free, Don't quote me on that though.

[jonbuoy]

I get the odd thing for the Z1R and sometimes my MX bikes from the States and Aussy. Linkage kits and various bits where over $100-00 cheaper retail incl freight from BTO Sports USA. Delivered within 5 days!

All items should ship tax free. You pay GST on anything over $400-00 incl freight.
So $390-00 incl freight and you pay nothing, $410-00 incl freight and you pay GSt on the whole $410 not just the extra $10-00. If your purchase is $700-00 plus freight you may wanna make 2 orders for your stuff just work out if the extra freight kills the deal. You didn't say where you where buying from.
If your spending a big amount you'll just have to pay GST. The above is for personal use only so don't use a company name even as a delivery address.
I don't know what the law actually says but the above is what I have discovered from personal experiance. Hope this helps!

Ps I've never been charged duty so I gather Bike bits are duty free, Don't quote me on that though.

American companies are fantastic to deal with over the net, always answer your emails within a day or two and always prepared to deal with the extra hassle of shipping overseas.

[degrom]

I get the odd thing for the Z1R and sometimes my MX bikes from the States and Aussy. Linkage kits and various bits where over $100-00 cheaper retail incl freight from BTO Sports USA. Delivered within 5 days!

All items should ship tax free. You pay GST on anything over $400-00 incl freight.
So $390-00 incl freight and you pay nothing, $410-00 incl freight and you pay GSt on the whole $410 not just the extra $10-00. If your purchase is $700-00 plus freight you may wanna make 2 orders for your stuff just work out if the extra freight kills the deal. You didn't say where you where buying from.
If your spending a big amount you'll just have to pay GST. The above is for personal use only so don't use a company name even as a delivery address.
I don't know what the law actually says but the above is what I have discovered from personal experiance. Hope this helps!

Ps I've never been charged duty so I gather Bike bits are duty free, Don't quote me on that though.

Nice... I am dealing with a supplier in the US. I have ordered twice from them... But both times it was under $200. The next shipment I want to order will have to be over $600 so I can get a bit of discount from the supplier.

Luckily the stuff I am buying is duty free...

And yes, you are correct motorcycle parts are duty free..

[degrom]

American companies are fantastic to deal with over the net, always answer your emails within a day or two and always prepared to deal with the extra hassle of shipping overseas.

I must agree 100%!!! They are great...

The best part for me is that if you are not impressed with the company you are dealing with , there are most likely 3 more companies doing the same thing to choose from.

I think we don't have the volume and population in NZ to support that kind of business. But it does sound very impressive.

I wonder when China will get into this habit cause they produce most of the goods but still lack the customer service the Western countries offer.

[huck farley]

I do a fair bit of trading overseas. There is no tax penalty to you on the goods you order to come to NZ. When the goods arrive into NZ If there is a customs declaration attached which there should be. You are exempt from paying taxes of any kind if the value of the goods you import plus the shipping costs do not exceed $400.00 nzd.

I simply ask my provider overseas to put a $150.00 value on the Customs declaration. I have no problem doing that.

There is a downside to it though. If it gets lost the Insurance will only pay out what is on the Customs declaration, recorded at the other end.

Fingers crossed, I haven't lost anything yet.

[Mully]

There is a downside to it though. If it gets lost the Insurance will only pay out what is on the Customs declaration, recorded at the other end.

And, y'know, fraud and that.

And if Customs decides to Audit it, they'll be all over you if the value doesn't check out. And they will make your life a misery if they suspect your supplier has misdeclared the value. Plus they'll get their mates at IRD to have a nosey too, which is about as much fun as masturbating with sandpaper.