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Goods and Services Tax Act 1985

Imposition of tax

10C: Election by supplier that supplies of higher-value goods be supplies of distantly taxable goods

You could also call this:

"Choosing how tax works for goods you sell to New Zealand from overseas"

Illustration for Goods and Services Tax Act 1985

You can make a choice about the tax on goods you supply if you are not living in New Zealand or if you supply goods under certain sections of the law, such as section 60C, section 60D, or section 60E. You must tell the Commissioner about your choice before the period you want it to start. You must also meet certain requirements.

You can make this choice if you think most of the goods you supply to New Zealand will be worth less than a certain amount. If you do not meet this requirement, the Commissioner might still let you make this choice if they think it will not affect the tax system. They will look at your past behaviour with taxes and other things.

If you make this choice, it will apply to goods that meet certain rules, such as those in section 4B(1)(a) to (d). It will also apply to the period you chose and later periods until the choice is cancelled. If you supply goods worth more than the certain amount to someone in New Zealand, it will be considered a taxable supply.

The Commissioner can cancel your choice if you ask them to or if they think it is necessary. They will tell you when the choice will end and why, and you can give them your thoughts on the matter.

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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=LMS289127.

Topics:
Money and consumer rights > Taxes
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"How to work out the value of goods to see if they have tax on them from far away"

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Part 2Imposition of tax

10CElection by supplier that supplies of higher-value goods be supplies of distantly taxable goods

  1. A person (the electing supplier) who is a non-resident, or is a supplier of goods under section 60C, 60D, or 60E, may make an election under this section for a taxable period (the initial period) beginning after the election if—

  2. the Commissioner has not, before the election, cancelled under subsection (5)(b) an election under this section by the electing supplier; and
    1. the electing supplier notifies the Commissioner of the election before the initial period; and
      1. the electing supplier meets the requirements of subsection (2).

        1. An electing supplier may make an election under subsection (1) if—

        2. at the time of the election, the electing supplier considers that 75% or more of the total value of distantly taxable goods supplied by the electing supplier to places in New Zealand in the 12-month period beginning with the first day of the initial period will consist of items having an estimated customs value equal to or less than the entry value threshold:
          1. for an electing supplier who does not meet the requirements of paragraph (a), the Commissioner considers that giving effect to an election by the electing supplier will not result in a risk to the integrity of the tax system, taking into account—
            1. whether the electing supplier and associated persons have a good history of previous compliance with the requirements of taxation laws and the taxation laws of countries and territories outside New Zealand; and
              1. the total value of items of goods, each having an estimated customs value greater than the entry value threshold, that the electing supplier sells in a period and are delivered at places in New Zealand; and
                1. other considerations that the Commissioner considers to be relevant.

                2. An election under subsection (1) meeting the requirements of subsection (2) is effective for—

                3. goods that meet the requirements of section 4B(1)(a) to (d) for distantly taxable goods; and
                  1. the initial period; and
                    1. later taxable periods beginning before a cancellation of the election under subsection (5).

                      1. For a taxable period for which the election is effective under subsection (3), a supply by the electing supplier, after the election, of an item of goods having an estimated customs value greater than the entry value threshold is a supply of distantly taxable goods if the goods are delivered at a place in New Zealand.

                      2. The Commissioner may cancel an election from a date after which the election would otherwise be effective—

                      3. by notifying the electing supplier of the date on which the election ends, if the electing supplier requests the cancellation:
                        1. if paragraph (a) does not apply, by—
                          1. notifying the electing supplier of the date of the proposed cancellation and the reasons for the proposed cancellation; and
                            1. considering any arguments against the proposed cancellation that are provided by the electing supplier within 30 days from the date of notification, or within a shorter or longer period if the Commissioner considers that the period is appropriate in the circumstances; and
                              1. notifying the electing supplier of the date on which the election is cancelled.

                              Notes
                              • Section 10C: 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 10C(1)(b): amended, on , by section 245(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                              • Section 10C(1)(c): inserted, on , by section 245(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                              • Section 10C(2): amended, on , by section 245(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                              • Section 10C(2)(a): amended, on , by section 245(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                              • Section 10C(2)(b): amended, on , by section 245(5) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                              • Section 10C(3): amended, on , by section 245(6) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).