For Australian companies wanting to export their goods to New Zealand there are potentially four different ways to deal with the liability of NZ GST, currently set at 15%.
Option 1 is to register a local company. This subsidiary basically becomes the importer and pays GST to NZ Customs on the arrival of the goods. This is then claimed back from Inland revenue on their next return. The company becomes liable though for New Zealand income tax and must comply with all other local regulatory requirements.
Option 2 is to become a registered taxpayer but for GST only. This enables and Australian entity to register for GST only and either contract the GST returns to a local accountant or contact us at Hobbs Global Logistics for the software package to manage this on their own account. In this instance there is no income tax presence.
Option 3 is to just export to individual retailers in New Zealand. The goods are consigned to each retailer. The cargo can be consolidated for freight purposes. The retailer is the importer and has the liability for the GST payment to Customs. Each consignment must be cleared through NZ Customs in the name of the retailer and Hobbs Global Logistics will collect the GST from each importer. The clearance and distribution costs will be billed onto the relevant party depending on the terms of the shipment e.g CFR,FIS, etc. Although simple from the exporter’s point of view this can be expensive with all the clearances involved and the amount of work in dealing with multiple importers.
Option 4 is where the exporter appoints a local agent to handle the GST and collections. Hobbs Global can offer this service which allows the Australian exporter to consolidate all their consignments into one shipment. Raise an invoice to cover all the goods in that shipment and debit Hobbs Global Logistics. We clear and pay the GST to NZ Customs. Hobbs Global then raise an invoice to each ” importer” which has the addition of GST, collects the total invoice amount and remits the GST component to Inland Revenue.
The exporter is provided with a debtor’s report and Hobbs Global offsets the amount it receives from the importers with the amount it owes the exporter. A percentage fee is charged for this service and there are other conditions applicable.
Please contact us if further information or assistance is required.