When you buy goods from overseas — whether from Amazon, ASOS, or a small eBay seller — GST and customs duties may apply when those goods enter New Zealand. Understanding the rules helps you avoid unexpected charges and understand when overseas retailers already collect GST on your behalf.
Since 1 December 2019, overseas retailers with NZ sales over NZD $60,000/year must collect and remit 15% GST on goods valued under $1,000 sent to NZ buyers. Goods valued over $1,000 have GST (and customs duty) collected by NZ Customs when they arrive — you receive a demand notice before your parcel is released. Most major overseas retailers (Amazon, ASOS, Book Depository) already collect GST at checkout. Purely digital services (Netflix, Adobe, Spotify) have also been subject to GST since 2016.
The $1,000 Customs Threshold
NZ Customs uses a $1,000 NZD threshold (de minimis level) to determine when physical goods are assessed for GST and duty on arrival:
| Goods value (NZD) | GST treatment |
|---|---|
| Under $1,000 | GST collected by the overseas retailer (if they meet the NZD $60,000 annual sales threshold) |
| $1,000 or over | GST and duty assessed by NZ Customs when goods arrive; you pay before release |
| Excise goods (alcohol, tobacco) | Assessed at the border regardless of value |
Note: The $1,000 threshold is based on the value of the goods — not including shipping and insurance, in most cases.
Low-Value Imported Goods (LVIG) Rules
Since 1 December 2019, the LVIG rules require overseas businesses to collect GST on goods under $1,000 sent to NZ consumers if they meet the sales threshold:
| Rule | Detail |
|---|---|
| Registration threshold | NZD $60,000 in NZ sales per 12 months |
| GST rate | 15% on the value of goods |
| Who pays | Overseas retailer (or marketplace platform) adds GST at checkout |
| Buyer impact | You see GST included in the checkout price |
Major retailers already collecting GST at checkout: Amazon Australia, ASOS, Apple App Store, Google Play, Etsy, AliExpress (for eligible orders), Book Depository, and many others.
If the overseas seller is not registered (below the threshold or non-compliant), goods under $1,000 may arrive without GST having been collected. NZ Customs does not always catch these.
Goods Over $1,000 — Customs Process
If your order exceeds $1,000 NZD:
- NZ Customs assesses the goods on arrival
- You receive a Customs Entry Notice (paper or electronic) with the GST and duty owing
- You must pay before your parcel is released
- Duty rates vary by product type (clothing: 12%, most electronics: 0%, some furniture: 5–10%, etc.)
Total import cost calculation: $$\text{Total charges} = (\text{Goods value} + \text{shipping}) \times 15% \text{ GST} + \text{applicable duty}$$
Example — $1,500 NZD gaming laptop (0% duty):
- GST: $1,500 × 15% = $225
- Duty: 0%
- Total payable to Customs: $225
GST on Digital Services
Overseas digital service providers with NZ customers over $60,000/year have been required to collect 15% GST since 1 October 2016:
| Service | GST status |
|---|---|
| Netflix, Disney+, Spotify | 15% GST included in price |
| Adobe Creative Cloud | 15% GST included |
| Microsoft 365 (personal) | 15% GST included |
| App Store purchases | 15% GST included |
| Online courses (Udemy, etc.) | 15% GST where applicable |
| SaaS tools (Canva, etc.) | 15% GST if registered |
GST Registration for Overseas Businesses — What It Means for NZ Buyers
Overseas retailers that register for NZ GST:
- Are assigned an IRD number and file GST returns quarterly
- Collect 15% NZ GST on eligible sales
- Remit that GST to Inland Revenue
As a NZ buyer, you cannot claim back the GST you pay to an overseas retailer unless you are GST-registered yourself and the purchase is for your business. GST-registered NZ businesses should request a tax invoice from the overseas supplier and claim the input tax credit.
Frequently Asked Questions
I bought a $300 item from the US and it arrived without NZ GST. Should I have paid?
If the US retailer does not meet the $60,000 NZ sales threshold, they are not required to collect GST. For goods under $1,000, NZ Customs generally does not assess GST on arrival. In practice, some low-value goods arrive without GST being collected.
Do I pay duty on goods imported for my business?
Yes — duty is assessed based on the goods’ tariff classification regardless of business or personal use. GST-registered businesses can claim back the GST component as an input tax credit by keeping the Customs entry document.
Is shipping included in the value NZ Customs uses to calculate GST?
For goods assessed at the border (over $1,000), Customs typically uses the Customs value which can include shipping — check the Customs Entry Notice for the exact amount used. For LVIG rules, the value is generally the goods price excluding shipping.
My order from the US was split into two shipments under $1,000 each. Do I still pay GST?
Customs assesses each shipment separately. Splitting is not a deliberate loophole as GST may be collected by the retailer at checkout regardless. Intentionally splitting to avoid threshold rules would be viewed poorly by Customs.