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Goods and Services Tax Act 1985

Imposition of tax

10B: Estimating value of goods in supply for treatment as distantly taxable goods

You could also call this:

"How to work out the value of goods to see if they have tax on them from far away"

Illustration for Goods and Services Tax Act 1985

When you supply goods, you need to work out their value to determine if they are distantly taxable goods. You do this by taking the amount you are paid for the goods and subtracting certain costs, such as transport and insurance charges. You also subtract the amount of tax that would be charged if the supply were made in New Zealand, and any duty payable under the Customs and Excise Act 2018.

The amount of tax that would be charged is worked out under section 8(1) of this Act, as if you were a resident supplying the goods. You can use a reasonable estimate of these costs if you do not have the exact information at the time of supply. This estimate is based on the information you have available to you.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS289065.

Topics:
Money and consumer rights > Taxes
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"How to work out the price of goods and services, including tax"

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Part 2Imposition of tax

10BEstimating value of goods in supply for treatment as distantly taxable goods

  1. The value of an item of goods is determined under this section for the purposes of determining, when a supply of the goods is made, whether the goods are distantly taxable goods.

  2. The value of an item of goods under this section is the consideration for the supply of the item reduced by the total amount included in that consideration for—

  3. the cost of transport and insurance charges,—
    1. for goods that are imported into New Zealand, for the period beginning when the item leaves the country or territory from which the goods are supplied and ending when the item is delivered in New Zealand:
      1. for goods that are not imported into New Zealand, for the period beginning when the item leaves its place of origin and ending when the item is delivered in New Zealand:
      2. the amount of tax that would be chargeable on the supply of the item under section 8(1) if the supply were made by the supplier as a resident and for the same consideration:
        1. duty payable on the item under the Customs and Excise Act 2018.

          1. The supplier of an item of goods may use a reasonable estimate of the amount referred to in subsection (2), based on the information available to the supplier at the time of the supply.

          Notes
          • Section 10B: inserted, on , by section 14 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
          • Section 10B(2)(b): replaced (with effect on 1 December 2019), on , by section 244 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).