GST may be charged again at the border when the correct information is not included in the customs documents. This can happen when:
- a single parcel valued over NZ$1,000 contains items that individually have a customs value of NZ$1,000 or less
- GST has already been paid on an item valued over NZ$1,000
- the goods are priced in a currency other than New Zealand dollars and the exchange rate used by the supplier differs from that used by the New Zealand Customs Service.
The customer can ask for a refund of the GST charged if they give you a declaration or evidence that they paid GST at the border.
Once you have reimbursed the customer for the GST you charged, you will not need to pay GST on that sale to Inland Revenue. If you have already paid GST on that sale, you can make an adjustment to reduce the GST payable in your next GST return.
Stopping GST being charged twice
So that GST is not charged twice:
- The supplier needs to provide tax information on customs documents.
- The customer can provide the New Zealand Customs Service a receipt to make sure GST is not applied again.
You must inform your transporter or customs broker:
- whether GST has been paid at the point of sale
- the name and GST number of the business responsible for returning GST.
Penalties may apply if you do not provide the required information.
Suppliers must provide a receipt if they charge GST
Suppliers must provide a receipt to consumers if they have charged the consumer GST on some or all of the goods in the transaction. This receipt can then be used as evidence to Customs that GST has already been charged on the goods.
Accidentally charging a GST-registered business
If you accidentally charge GST to a GST-registered business, they will likely seek a refund of the GST from you. If the value of the supply is NZ$1,000 or less, you can choose to provide taxable supply information to the GST-registered business instead of making a refund.