New Zealand agreed to give offshore businesses a two-month extension until 1 December 2019 to get their systems ready for the new GST on low-value imported goods measure.

Revenue Minister Stuart Nash confirmed Cabinet has agreed to the Finance and Expenditure Committee’s recommendation to extend the start date. The Committee heard public submissions on the Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill.

“The new system to collect GST was due to take effect on 1 October 2019. It will now come into force on 1 December 2019,” Mr Nash says.

“The Government has agreed to the change in recognition that offshore businesses want to comply with the law but need time to adapt their IT and accounting systems,” Mr Nash says.

Under the new measure, offshore businesses who supply more than $60,000 of low-value goods per year into New Zealand will be required to register with Inland Revenue and collect New Zealand GST on goods valued at or below $1,000. The GST on goods valued above $1000 will continue to be collected by Customs at the border

It is estimated the tightening of the GST system will collect approximately $126 million in revenue per year by 2022/23.

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