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Tax take from offshore e-commerce sites set to hit $100 million

Crossborder shopping

New Zealand’s tough stance on collecting tax from offshore companies selling to locals online has brought in $95.2 million in GST revenue so far this year. 

GST now applies to offshore companies that sell goods worth more than $60,000 a year in New Zealand, and on items priced at less than $1000. It took effect last December, replacing what was effectively a sales-tax holiday for Kiwis purchasing goods worth less than $1000. 

The tax take appears on course to reach Inland Revenue Department estimates of $112 million a year within the first three years. 

“We’re on track to exceed $100m revenue in the first 12 months,” Inland Revenue spokeswoman Gay Cavill told Stuff. 

However it is unclear whether the migration of Kiwis online to shop during the Covid-19 crisis had boosted the IRD’s take.  

“On the one hand, more people are shopping online due to lockdowns … but on the other it’s quite possible sales through overseas platforms have been negatively impacted due to production and shipping delays,” she said. 

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