New Zealand imports about $30 billion New Zealand dollars’ (NZD) worth of goods and services each quarter. New Zealand’s goods and services tax (GST) applies to all imported goods above a certain threshold, but the import rules regarding who collects the tax, when, and from whom vary depending on the value of the shipment and the registration status of the customer. The value threshold is central: below this threshold, overseas sellers collect GST from customers at checkout, and above it, the New Zealand Customs Service collects at the border.

Below, we’ll discuss how the threshold works, when New Zealand businesses can reclaim GST on imports, and what can happen when businesses don’t properly handle GST.

Key takeaways

• Overseas businesses that exceed a 12-month threshold of sales to New Zealand customers must register with Inland Revenue and charge GST.

• New Zealand GST-registered businesses can reclaim GST paid on some imports.

• The low-value threshold applies to the full shipment value, so a combination of low-value items can still prompt the Customs Service collection requirements if the total exceeds that figure.

What is GST on imported goods in New Zealand?

New Zealand’s goods and services tax is a 15% consumption tax on most goods and services sold in the country. If you’re consuming something in New Zealand, GST applies. The 15% GST applies to all imports above $1,000 NZD, except for alcohol and tobacco, which means online shopping is subject to GST if New Zealand customers buy from abroad and the purchase exceeds the threshold. GST is separate from New Zealand’s import tariffs.

Do I have to pay GST on imported goods in NZ?

New Zealand’s GST applies to imported goods at the point of entry. How GST is collected depends on the value of what is being imported.

Here’s what to know:

• Goods valued at $1,000 NZD or less: No GST is due in New Zealand until the overseas business reaches the GST registration threshold. Alcohol and tobacco are exceptions.

• Goods valued above $1,000 NZD: The Customs Service collects GST at the border.

• The threshold is assessed on customs value: Shipping and insurance costs are included, as is duty if applicable, so a package with a goods value of $950 NZD and $120 NZD in freight won’t fall under the low-value threshold.

• Alcohol and tobacco are excluded: These are always subject to border collection and excise duty, regardless of value.

• The threshold applies to the shipment as a whole: A single shipment of 15 items, each worth $80 NZD, that goes through border collection as $1,200 NZD is subject to GST, even though each item is below $1,000 NZD. Value might be combined if multiple items arrive in New Zealand at the same time, even if purchased separately by the same person or business.

How does GST on imported goods in New Zealand work?

The mechanics of GST collection differ depending on which side of the $1,000 NZD threshold your goods fall. Understanding both processes matters whether you’re an overseas seller, a New Zealand business importing stock, or a customer trying to work out what you owe.

For low-value goods, under $1,000 NZD

Overseas businesses selling goods to New Zealand customers are required to register for, collect, and remit New Zealand GST if their New Zealand sales exceed $60,000 NZD in a 12-month period. Customers buying low-value goods from an overseas retailer that sells more than $60,000 NZD a year should see GST reflected in the price shown at checkout. Typically, the Customs Service doesn’t collect again, although rules prevent double taxation if GST has already been paid at the point of sale.

For goods over $1,000 NZD

Goods that exceed the $1,000 NZD threshold must be cleared by the Customs Service.

Note these factors:

• Assessment: The Customs Service calculates GST at 15% on the goods value, including any applicable import duty as well as insurance and freight, postal, or courier charges.

• Import entry: The customs broker or freight forwarder pays the levies to the Customs Service and might pass them on to the customer.

What are the compliance obligations for overseas sellers charging GST on imported goods in New Zealand?

If your business sells physical goods to New Zealand customers and your New Zealand sales exceed $60,000 NZD annually, you’re required to register for New Zealand GST with Inland Revenue. There’s no residency requirement.

Registration and ongoing compliance involve:

• Registering with Inland Revenue: The process can be completed online. You’ll receive a New Zealand GST number.

• Charging GST at the correct rate: Include 15% GST in the checkout price of goods valued at $1,000 NZD or less that are sold to New Zealand customers.

• Filing GST returns: You must file a GST return for every taxable period.

• Remitting collected GST to Inland Revenue: This must be paid in NZD by the due date on your return.

Marketplace platforms that are GST-registered and facilitate low-value sales to New Zealand customers from non-New Zealand sellers are treated as the supplier for GST purposes, which means the platform—not the individual seller—is responsible for charging and remitting GST on those transactions.

GST-registered importers in New Zealand can account for GST on an invoice basis, which means they can claim an input tax deduction when an invoice is issued to them or when payment is made to the Customs Service, whichever is earlier.

When you’re collecting GST in NZD from customers across multiple countries and remitting it to a specific tax authority, your payment infrastructure becomes key. You need a payments setup that handles currency, tax calculation, and reporting without creating reconciliation problems. Tools such as Stripe Tax can help you calculate the correct GST on transactions in real time, generate the records you need for filing, and integrate with the checkout flow so the tax line appears correctly for New Zealand customers.

What are the risks and costs of getting GST on imported goods in New Zealand wrong?

Noncompliance with New Zealand’s GST rules on imported goods can take various forms. Each carries its own cost.

Undercollection

Not charging GST when you’re required to can leave you exposed to Inland Revenue assessments for the unpaid tax plus interest and penalties. If you’re caught, you’ll have to pay what should have been collected, which can be difficult to recover from customers at that point.

Overcollection

Charging GST on transactions where it doesn’t apply or charging it to GST-registered business customers who should be exempt creates problems. Those customers will push back, and if you’ve remitted the overcollected tax to Inland Revenue, it can be a slow process to recover it.

Double taxation

If an overseas supplier charges GST at the point of sale and the Customs Service also collects GST at the border, the recipient has paid twice. Clean documentation prevents this: the commercial invoice should state the GST-inclusive price and the supplier’s New Zealand GST registration number.

Lost input tax credits

If New Zealand businesses that import goods keep poor records, they can lose input tax deductions they’re entitled to.

Is your business handling GST on imported goods in New Zealand correctly?

Whether you’re an overseas seller reaching New Zealand customers or a New Zealand business sourcing goods internationally, you must make sure you’re handling GST correctly.

Begin by determining where your sales fall relative to the $60,000 NZD GST registration threshold and where your imports fall relative to the $1,000 NZD value threshold. Those determine much of your obligations.

If you’re running an ecommerce operation that sells into New Zealand, your checkout infrastructure needs to handle GST calculation correctly at the point of sale. Stripe Tax automatically applies New Zealand’s 15% rate to qualifying transactions and generates the documentation trail that enables accurate filing.

New Zealand’s GST system is relatively straightforward compared with value-added tax (VAT) regimes in some markets. It requires that businesses pay attention to the thresholds and payment infrastructure to avoid tax errors upstream.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.