New Zealand Taxes on Shipping Services
New Taxes Being Implemented for New Zealand Shoppers
Beginning 1 December 2019, a 15% goods and services tax (GST) will be applied to any shipments being imported to New Zealand. Most goods and services you purchase locally already include GST, but as of 1 December, companies importing goods and services from around the world are required to collect this tax directly from Kiwi shoppers as well.
How GST is Calculated
GST is calculated based on the total cost of a shipment. This means you are taxed on the value of what you ship, as well as on the cost of shipping services, including insurance, if selected.
For example, if you purchase a guitar from the US for $600 USD ($942 NZD) with shipping for $50 USD ($79 NZD), you would pay 15% GST on the total cost of the guitar and shipping, USD $97.50 ($154 NZD). This would make your total cost to purchase and ship the guitar $600 + $50 + $97.50 = $747.50 USD ($1174 NZD).
See the chart below to see how it's calculated in this example.
What These Taxes Mean for You
Companies importing items to New Zealand have two options for collecting GST:
- Collect GST prior to shipping only on items valued under $1,000 NZD, then the customer pays GST on items valued over $1,000 NZD upon arrival in New Zealand
- Collect GST prior to shipping on items of any value, so the customer does not have to pay GST multiple times – on low-value items before shipping, then again on high-value items upon arrival
MyUS will be collecting GST on all items prior to shipping, because it streamlines the payment process for our members, and provides greater transparency in cost. It also lessens the chance of being double charged GST in instances of shipping multiple items of differing value in a single shipment.
Please note: While MyUS will be collecting GST on total shipment costs to New Zealand, other governmental fees may apply to your shipments, including additional GST on those governmental fees. Those fees will not be collected by MyUS, but if they apply, you will be responsible to pay them upon arrival in New Zealand.