GST Threshold May be Dropped

August 10, 2015 New Zealand Taxation

Online purchases made by New Zealanders could soon be significantly more expensive as the government looks at dropping the GST-free threshold.

Earlier this month the Prime Minister John Key indicated that the threshold for GST on online purchases may be reduced to as low as NZD 20, or even be abolished entirely.

The Prime Minister said that if the government opts to lower the threshold for online purchases at all, it would change the limit to a level which is similar, or equal, to the new limit in Australia.

Currently, GST doesn’t apply in Australia on purchases under AUD 1000, but currently the government is looking at greatly reducing the limit or abolishing it.

The threshold in New Zealand is currently set at NZD 400.

John Key added that the government is unlikely to discuss the issue in the near future, but a paper on the subject should be presented by the Revenue Minister later this month.

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