Amazon Tax introduced to NZ
A new tax has been introduced to New Zealand where purchasers are required to pay goods and services tax on goods bought from sites such as Amazon. Previously any goods valued at under $400 NZ were exempt from tax.
Goods and Services tax or G.S.T as it is called is 15% of the value of the goods but apparently the postage paid on the item will be taxable as well. I don’t know about others but whenever I have bought stuff on Amazon I had to pay $25 NZ postage which means an extra $3.75 is payable in G.S.T on the postage alone never mind the value of the book.
The overseas websites are required to register for G.S.T but those that sell less than $60,000 NZ worth of goods to NZ per annum are exempt.
I’m not sure how this tax applies to books bought overseas and brought back home with your luggage. In due course we will see how all this unfolds.
This new law is designed to level the playing field because local retailer’s are suffering with the volume of online shopping. I think if Amazon set up their F.B.A service in New Zealand then physical retailer’s will really have something to worry about. FBA stands for fulfillment by Amazon.
ABOUT AMAZON FBA
Here is how it works. You source items to sell at Amazon. This may be from ebay or in our case trademe and put your markup on it to sell at Amazon FBA. Amazon will collect your goods for you for delivery to their warehouse. I do know of one or two people in the UK who source products for Amazon FBA by going through the websites of high street stores and sourcing products that way.
If you are in a country where you can do this then it is worth a try. I will just have to wait and hope that Amazon do set up a warehouse in NZ as well so that I can jump on the bandwagon as well.
robertastewart.com.