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Wellington Accountants: Understanding New Zealand’s Importation Tax Laws

 

If you’re a business owner, it’s important to understand the importation tax laws in New Zealand. These taxes can have a significant impact on your bottom line, so it pays to be aware of them. In this blog post, we’ll explain what importation taxes are, who is liable for them, and how they are calculated.

What is an Importation Tax?

An importation tax (also known as Customs Duty) is a tax imposed on goods imported into New Zealand from overseas. The rate of importation tax varies depending on the type of item being imported, its country of origin, and other factors. It’s important to note that even if you don’t pay any importation taxes in the country of origin, you may still be liable for duties in New Zealand.

Who Pays Importation Taxes?

The importer (i.e., the person or company responsible for bringing the goods into New Zealand) is usually liable for any importation taxes due on those goods. This means that if you are importing goods into New Zealand as part of your business activities, you will be liable for any customs duties due on those items.

How Are Importation Taxes Calculated?

Importation taxes in New Zealand are calculated based on several factors including the type of item being imported, its country of origin, and its value (in NZD). Generally speaking, most items will incur an import duty rate of 10%. However, some items may be subject to higher rates such as 15% or 20%. Additionally, certain types of items may also be subject to GST at 15%. You can use this calculator tool to determine how much duty and GST are payable for various types of imports into New Zealand.

In conclusion, understanding new zealand’s importation tax laws is essential for businesses importing goods from overseas. Importation taxes vary depending on several factors such as the type and value of the item being imported as well as its country of origin. As an importer, it’s important to be aware that you are likely liable for any customs duties due on those items and should take steps to ensure that these payments are made correctly and timely so that your business remains compliant with all applicable laws. To calculate duty and GST payable on imports please use this calculator tool provided by Customs NZ directly. Knowledgeable professionals at Metric Marketing can help guide your business through this process if needed. Thank you!

As a business owner, it is important to understand the rules and regulations surrounding importation tax in New Zealand. This article will discuss the main points of importation tax in New Zealand and how it may affect your business.

What is Importation Tax?

Importation tax, also known as customs duty, is a fee imposed on goods imported into New Zealand from other countries. The rate of duty varies according to the type of goods being imported. Generally speaking, the higher the value of goods imported, the higher the rate of duty that needs to be paid. It is important to note that some items are exempt from customs duty altogether. These include books and printed matter, medicines and medical products, plants and seeds for horticultural purposes, scientific equipment for educational use and so on.

Who Collects Importation Tax?

In New Zealand, customs duty is collected by Customs NZ (formerly known as The New Zealand Customs Service). This agency is responsible for ensuring that all imports comply with relevant laws and regulations including those related to tariffs or customs duty. Any questions regarding import taxes should be directed to Customs NZ directly.

What are the Benefits of Paying Importation Tax?

Paying importation tax has a number of benefits for businesses who choose to do so. Firstly, it ensures that all imported goods comply with local laws and regulations which can help protect businesses from any potential legal issues down the line.

Secondly, paying importation tax helps support local industries by providing them with an advantage over foreign competitors who may not be subject to such taxes or tariffs. Finally, paying importation tax can help stimulate economic growth as any money collected can be used by governments to fund public services like healthcare or education which benefit everyone in society.

In conclusion, understanding importation taxes in New Zealand is an essential part of running a successful business here. Knowing what goods are subject to tariffs or duties and who collects them can help you make sure your imports are compliant with local laws while also helping you support local industries and stimulate economic growth. If you have any further questions about import taxes in New Zealand then make sure you contact Customs NZ directly for more information.

GST, Import Duty and Customs clearance fees

 

Almost all items bought from overseas and shipped to your YouShop address are charged at 15% GST before shipment to New Zealand. If shipments are shipped into New Zealand, the taxes are often high. The majority of those are used by incoming goods and others are based on the size of the package. Details on this charge are available from New Zealand customs websites. Please find an answer to your questions below. Site to determine whether or not additional duties are likely to occur.

Consignments worth more than NZD$1,000

 

The value of the merchandise is a maximum of $1000 and is subject to the duties and taxes. This duty amount is set by New Zealand Customs. The cost of the shipment must be formalised with NZ Customs. Your exporter will require both the NZ Customs client code and the supplier code. Find information on custom code for customers. The NZ Post Brokerage team then contacts you to pay for all duty and GST to pay calculated in the New Zealand Tax assessment.

Import tariffs

 

Most imports to New Zealand are not subject to importing tax. The tariff is 5-10 percent for some imported items, such as textiles, footwears, processed foods and machine parts. Preferential duty tariffs are lower than New Zealand standard tariff rates. It applies to products from countries New Zealand trade agreements with.

GST

 

Whenever items are purchased in foreign countries or sent to NZ, the GST will apply. These include products sent to a YouShop Address. In our redelivering business we charge tax on your order in NZ for the service provided for delivery. GST will be charged on your entire purchase price and you shop purchases.

Tariff concessions on residential building materials

 

Since 2014, the United State government has extended a number of commercial and industrial building permits by applying favourable tariffs. The concession is still pending in 2023. Find more details in this briefing for Ministers of State in a PDF format of 1MB.

Countries with preferential tariff rates

 

Various trade agreements have allowed tariffs to be removed in certain cases from goods from various countries such as the United States and the European Union. More details can be found at: Free trade agreements in force. (external links).

Learn how New Zealand’s new law affects import taxes and your business

 

New Zealand recently enacted laws which affect foreign companies selling goods directly to New Zealand Consumers. This new law was introduced in January 2019. It is very much like the low-value goods law imposed in 2018.

Additional fees for NZ Customs clearance

 

The following fees may be collected from your Shop accounts when you order your products. These include GST and duty charges.

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Andy Garvy
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The team at outside are a dedicated bunch. They go above and beyond in every situation and provide so much more than your standard tax accounting. They have developed process maps, management reports, managed our invoicing, payables and pretty much taken care of every part of our business when we have needed it. They are a big part of our business and will continue to be moving forward.
Matt Holton
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A great team - striking the right balance between professional, knowledgable accountants while being fun and personable to deal with. Always quick to respond. Harri has prepared my end of year statements and GST returns. I'm based in Auckland and have managed to snag a spot at the "co-working desk" in their office a couple of times while I'm down in Wellington.
Sarah Ny
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These guys are not the typical accountants. We engaged with Outside originally for our small business accounting needs, but over the years they have provided invaluable services above and beyond. We have grown as a business and Outside worked alongside us the entire time, supporting us with expert and professional advice throughout our journey. They are an awesome bunch, so easy to get along with, they break everything down into regular speak and no question is too dumb to ask. Their door is always open, everyone is super welcoming and they make a mean coffee.
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