Frequently asked questions on New Zealand's Low Value Goods GST

What is New Zealand’s Low Value Goods GST law?

On December 1, 2019, New Zealand implemented legislation to impose Goods and Services Tax (GST) on the sale of items that have a customs value of NZD 1,000 or less (Low Value Goods or LVG) sold by a seller with a place of establishment outside New Zealand to customers in New Zealand. Based on this, Amazon is required to calculate, collect, and remit 15% GST on LVG sold on Amazon.com.au by sellers with a place of establishment outside New Zealand and shipped to a New Zealand address.

How does New Zealand’s Low Value Goods GST affect my selling on Amazon account?

From December 1, 2019, Amazon started to calculate, collect, and remit GST at the rate of 15% on items classified as LVG for New Zealand GST purposes. The NZ GST will be applied to the AU GST-exclusive price and delivery charges that you have set in Seller Central.

Am I responsible for collecting and remitting Low Value Goods GST to New Zealand?

If your merchant business address in Seller Central is not in New Zealand, Amazon will calculate, collect and remit the GST on LVG directly to the New Zealand Inland Revenue Department (IRD).

If your merchant business address in Seller Central is in New Zealand, you remain responsible for collecting and remitting applicable GST on items you sell on Amazon.com.au and ship to or within New Zealand. Please seek individual tax advice if you are unclear about your obligations.

How do I ensure the items I sell on Amazon.com.au reaches the customer in New Zealand?

Amazon fulfilled packages already have the necessary information to clear New Zealand customs, and you do not need to take any additional steps.

Seller fulfilled packages will require additional information in order to pass customs in New Zealand. Go to Ship to New Zealand: required customs documentation for seller fulfilled items to review the necessary information required for your package to clear customs in New Zealand.

How do I identify which orders are subject to Low Value Goods GST?

On the Order Details page under the Tax Collection Model section, each order that is subject to LVG GST will be identified as “LowValueGoods”, and the “Collection Responsible Party” will be Amazon.

Where do I find which transactions are subject to Low Value Goods GST on my monthly reports?

You can use the Date Range Reports page to generate individual transaction reports for a specific date range. Additionally, inside the monthly Sales Tax Reports, you can find monthly transactions that are subject to LVG GST. The Tax Collection Model for LVG shipped to New Zealand will be “LowValueGoods”.

How does Amazon determine that I have a place of establishment outside New Zealand?

Amazon determines your place of establishment by looking at your seller business address on Seller Central. If your merchant business address is outside New Zealand, Amazon will calculate, collect, and remit GST at the rate of 15% for items classified as LVG.

If your merchant business address is in New Zealand, Amazon is not responsible for calculating, collecting, or remitting GST, and you remain responsible for collecting and remitting applicable GST on items you sell on Amazon.com.au and ship to or within New Zealand.

What happens if I have a New Zealand merchant business address on Seller Central, but my place of establishment is not New Zealand?

You must provide Amazon with accurate information on Seller Central. Failure to do so may be a breach of law and result in Amazon incorrectly calculating the GST payable. Misrepresenting your place of establishment may also have other consequences and result in action being taken by Amazon on your seller account, including termination of your seller account. Items shipped from outside New Zealand that do not include the required customs documentation and that have not had GST collected may be held up at customs and may be seized, incur delays, or be subject to fines or other consequences. In addition, if the customer does not receive their order, you will not be paid for the sale.

How will Amazon calculate the 15% GST?

When shipping LVG, the 15% GST will be displayed in your order details. GST applies on the item and any additional charges, including shipping and gift wrap charges. GST applies to each LVG item in an order, regardless of the total value of all items in an order. Amazon will calculate the NZ GST at checkout. As the sale price you set for the item and delivery charges on your account is inclusive of AU GST, the customer is charged 15% GST on the AU GST-exclusive sale price and delivery charges you set.

What is considered a taxable item?

All items sold on Amazon.com.au that are less than NZD 1,000 are taxable items subject to GST in New Zealand.

Will I be charged a sales tax collection fee for items shipped to New Zealand?

No, Amazon will not charge sellers a fee for calculating, collecting, and remitting GST for LVG shipped to New Zealand.

A customer claims he/she is a Business and is looking to be GST exempt. What do I do if a customer contacts me for a tax refund on orders I fulfilled?

If the items sold are LVG, ask the customer to contact Amazon. Amazon will handle all customer inquiries related to LVG GST.

I sold an item greater than NZD 1,000 that shipped to New Zealand. What do I need to do to make sure that my shipment is delivered to a New Zealand address?

This item would not be subject to LVG GST because its customs value is greater than NZD 1,000. As a result, 15% GST will not be assessed, collected, or remitted by Amazon.

However, GST, customs duty, and other import processing charges might apply. To enable the item to clear customs you will need to contact your carrier or obtain your own tax advice to determine the amount payable, ensure that you provide the right information, and ensure that you provide sufficient funds to the carrier to cover these amounts. Amazon will not calculate, collect or remit any GST payable for these items.

What happens when the customer returns an item that was shipped to New Zealand?

Where the customer is entitled to a refund, you will be expected to provide a full refund (subject to any applicable delivery charges payable by the buyer), excluding the GST that was withheld by Amazon. Amazon will refund the GST to the customer.