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Retail NZ back 'Amazon tax' for international GST

  • News
  • February 5, 2018
Retail NZ back 'Amazon tax' for international GST

A new ‘Amazon tax’ bill proposed by previous National government could see international goods being taxed by the end of 2019.

This tax would cut out the ‘loop hole’ on internet shopping which allows international retailers to sell into New Zealand without paying GST.

A Cabinet paper created by former National government suggest that international firms should become responsible for levying GST on items worth less an $1000 that they sold into the country.

New Zealand retailers will no doubt back the bill as to level the playing field between international competition, even though it is estimated that $42 million from the tax payer in the first year would go straight to the government.

The bill is yet to be passed, as it was put on the back burner by National in September during the elections. Greg Harford, general manager of public affairs for Retail NZ, has said it abut time the unfair advantage is leveled.

“At present, the government actively disadvantages Kiwi retailers by making them pay 15 percent GST on sales. Foreign ‘etailers’ are not required to do so, which gives them a price advantage when selling to New Zealanders.”

Harford expresses the economic benefits of including an ‘Amazon tax’, ranging from an expected collection of $200 million in the first year and at least $5.8 billion in tax revenue over the next ten years.

“We are now the only country with a GST or VAT consumption tax that retains a high de minimis threshold, and we are therefore the only country which continues to confer significant tax and price benefits on foreign retailers at the expense of domestic business.”

NZ Retail says that if GST were pre-paid on these items by the supplier, around 390,000 parcels would no longer need to be assessed for GST as they entre the country.

“It is not suitable for the government to continue to turn a blind eye to global companies doing business here without paying their share of tax,” says Harford.

“Retail NZ strongly supports ‘efairness’ and has been campaigning for a number of years to have the government level the playing field for GST.”

Harford says NZ Retail would like to see the decision announced as part of this year’s budget. The proposed bill at the moment has an aim date of October 2019.

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First Looks: Inside the VIP Krispy Kreme opening

  • News
  • February 23, 2018
  • Courtney Devereux
First Looks: Inside the VIP Krispy Kreme opening

The Register was lucky enough to be invited to the VIP opening of Krispy Kreme’s first New Zealand store. The opening included a tour of the new distribution centre and even a make-your-own doughnut experience.

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Junk and Disorderly pops up in Ponsonby Central

  • News
  • February 23, 2018
Junk and Disorderly pops up in Ponsonby Central

Junk and Disorderly is the latest pop-up installment to come to Ponsonby Central. The space is a showcase of some collected pieces by the owners who wish to share the message of the store – the art of doing what you love.

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Sneak a peek inside the February/March issue of NZ Retail magazine

  • News
  • February 23, 2018
  • The Register team
Sneak a peek inside the February/March issue of NZ Retail magazine

The latest issue of The Register's print magazine, NZ Retail, is winging its way to subscribers right now. This time, we focus on how poor waste minimisation is sending retailers slip-sliding away from consumers' good books; how to make Amazon work for you; new developments to watch across New Zealand; and retail's top five fastest-growing categories.

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