A non-resident business carrying on a taxable activity and supplying goods or services in New Zealand, may need to register for GST.
The business will need to charge GST on its sales and can claim back GST on its business expenses.
If you're unsure whether or not your business will make taxable supplies in New Zealand you can contact us or your tax agent.
Kozy Kangaroo Pty Ltd (KKPL) is an Australian resident company making and supplying board games and education toys. All of its products are individually valued at NZ$1,000 or less. KKPL will soon offer its products to New Zealand customers to buy through its website. KKPL only intends to sell its products to New Zealand customers who are not GST-registered and expects the value of those sales will exceed the GST registration threshold of $60,000 in the first 12 months.
To reduce its freight and administrative costs, KKPL decides it will send large quantities of its products to New Zealand every so often for bulk storage and future distribution by its New Zealand third-party logistics (3PL) provider Clever Kiwi Logistics Limited (CKLL). KKPL will do this before it gets any orders for the products from its New Zealand customers through its website.
CKLL will store KKPL’s products at its Auckland depot near Auckland airport. When KKPL’s New Zealand customers buy the products, KKPL will send an instruction to CKLL to package and send the products from its depot to KKPL’s New Zealand customers under the 3PL arrangement.
KKPL must register for GST in New Zealand under the domestic rules.
KKPL will not be a supplier of low value imported goods. This is because KKPL’s products will already be in New Zealand at the time of supply, that is they will be in New Zealand before the earlier of KKPL issuing invoices or receiving payments for them.