Iain Blakeley

Barrister - Tax Expert - Business Adviser - Director, Professional, Practical, Fast, Affordable

Customs

Australia considers $20 import threshold

It looks like Australia will reduce its $1,000 low value import threshold to $20. http://www.smh.com.au/federal-politics/political-news/gst-on-lowvalue-imported-parcels-moving-closer-20150721-gihfgy.html This issue has been around for ages. The main objection to a...

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

VAT and online sales

This is a very good item on the wider business implications of proposed changes in Europe to the VAT treatment of online digital media sales. http://performance.ey.com/2014/02/20/vat-change-online-sales-just-tax-concern/ Cheers Iain

GST and online shopping – is there a cure?

The NZ Government has delayed the Customs / IRD report on GST and online trading to allow the issue to be considered as part of the wider review of how global corporates are taxed. I think the merger of the issues was unavoidable. They are closely linked and the...

Good news

Might as well start the year with a bit of good news, even if it's a little old by now. On 11 December the Government gave us a xmas present with the announcement by the Minister of Customs the Temporary Import period for yachts, launches and small craft will be...

12 GST thoughts of Christmas

12 GST thoughts of Christmas: 1. There's no GST on gifts (so Santa is probably not GST registered). 2. GST registered businesses can claim back the GST on gifts they buy for staff, suppliers and customers. 3. If you buy someone a gift voucher for Christmas it's quite...

GST on prohibited imports

The Customs Appeal Authority recently decided duty is payable on goods confiscated by Customs as "prohibited imports". An importer tried to bring some cartons of beer and whisky into New Zealand. Unfortunately the labels didn't comply with NZ regulations and the...

Importing costs

NZ Customs have a feature on their website called "What's my duty?". It's a great tool for calculating how much GST and other charges you might be up for when you buy stuff on line. Here it is: http://www.whatsmyduty.org.nz/ The calculator isn't intended to be a final...

Exporters beware!

There's no GST on exports, right? Wrong! Sometimes GST does apply to exports. Here's an example: NZ Ltd agrees to sell products to UK Ltd. UK Ltd is going to use the parts in the creation of a sculpture in the UK. NZ Ltd invoices UK Ltd and receives payment before the...

At least it’s a start

There's a lot of chatter about South Africa's proposed law requiring foreign businesses to charge VAT on sales of digital products to South African residents. If passed the law will cover things like music, videos, software and games sold on line. At the moment, like...

Online trading – again

Once again the issue of internet purchases coming in to NZ GST free is hitting the news. See here In my view this needs to be addressed. The size of the problem will only increase. Having any kind of exemption like this distorts our GST system and favours some at the...

Good news for non resident businesses

Non resident businesses looking to establish supply chains into New Zealand have to go through hoops to register for GST here and recover the GST on their NZ expenses. Often it means they're at a disadvantage when compared to businesses established in New Zealand....

All Black Rugby World Cup jerseys

The furore over being able to buy the new AB jerseys overseas for less than they are sold locally once again calls into question how well our tax legislation is dealing with internet commerce. The pricing of the jerseys overseas would seem to allow them to be imported...

Did this warrant a penalty?

On 15 March 2010 an employee of an importer submitted an import entry form with Customs for wine. She made a mistake on the form which resulted in an underdeclaration of duty of 24k and GST of 3k. She realised the mistake the same night and immediately on turning up...

Low value import de minimis stays at $60

The Minister of Customs has just announced the low value import de minimis is to stay at $60. This follows a review of the threshold which considered whether it should be increased. The review was also to look at how the de minimis applied because it can be confusing...

Debate on GST and private imports

Today's NZ Herald editorial argues collecting GST on low value imports is more trouble than it's worth and advocates retaining an exempt threshold. Seehere The debate seems to be gaining momentum and the Customs Department are in the middle of a public consultation...

Australia shines spotlight on e-tailing

The Australian Government has set up an enquiry by their Productivity Commission into online shopping and the impact on retailers. There'll be lessons here for New Zealand. I think it's difficult to contemplate an end to tactile retail therapy which so many Kiwis seem...

On line shopping to get more expensive?

At the moment you can buy most goods from overseas on-line and won't have any NZ GST charged if they cost less than $400. [Note: for some items, like clothing, GST applies at less than $400.] NZ retailers are disadvantaged by this because it encourages on-line...