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The Glory Days Are Over

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  • The Glory Days Are Over

    In case you’ve been living under a rock and didn’t already know, this is an excerpt from an email I got from You Shop today-



    What’s changing?

    From 1 December 2019, all items purchased from overseas and shipped to your YouShop address will have 15% Goods & Services Tax (GST) applied. GST will be charged on the total value of the goods and YouShop services purchased.


    What does this mean to me if I’m using YouShop?

    If you’re buying from overseas retailers and shipping to your YouShop address, the retailer will not charge GST at the point of purchase (as they will not be aware that the items’ final destination is NZ). Instead, NZ Post will collect the GST on all purchases (irrespective of value) on behalf of the New Zealand Government, when you pay for your shipping to NZ through YouShop.

    If the value of your consignment* is over $1,000 then Customs may also collect duty (and GST on the amount of that duty) at the border.

    *A consignment is one or more parcels that have arrived together in New Zealand addressed to the same address/person.


    Why are these GST changes being made?

    With the growth of eCommerce, NZ businesses are at a competitive disadvantage compared to offshore suppliers, as they are required to collect GST on all sales, while overseas retailers don’t. These changes will help level the playing field for local businesses.


    Want more information?

    The New Zealand Government has released a comprehensive Q&A that explains these changes and the rationale behind them in greater detail.

  • #2
    got the same update.
    it will defo level the playing field for the poor retailers, especially as all the users will no doubt be declaring the full ticket value on all purchases.
    on the plus side it may mean that overnight NZ retailers will be able to drop their prices 30% to match the new GST paid prices of privately imported goods
    like the RR window motor i imported for $160 instead of the $465 the stealer in Auckland wanted and told me to wait 3weeks! funny enough, the exact same time i waited from the UK but im sure that is just coincidental?

    global imports at local prices, its a sure fire way to run a successful business. said no-one ever.
    “Strong people are harder to kill than weak people and more useful in general.”


    Despite having the numbers, there is the crazy man in the mountains that none of the tribes will go near!
    Always aim to be that man.

    Comment


    • #3
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      “Strong people are harder to kill than weak people and more useful in general.”


      Despite having the numbers, there is the crazy man in the mountains that none of the tribes will go near!
      Always aim to be that man.

      Comment


      • #4
        JM2CW, don't know anything about this stuff, but do know, that if you are too greedy people will go elsewhere, and those people who willgo elsewhere will always find a way.

        Like DW says, the fact local suppliers apparently want such profits means 'people will find a way to go elsewhere.

        Always putting the band-aid in the wrong place... again that's the problem here with this one


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        Harlan
        Timekeeper Watch Club
        Auckland, New Zealand, Pacific Ocean, Earth

        Comment


        • #5
          it should be pointed out that not all businesses are run in a gouging manner! some are simply bound by economies of scale, 5M people do not have the same buying power as 300M so raw material imports are more expensive (look at the cost of housing construction in NZ not including land value!), imported food stuff or any for of bulk product will always be more expensive in a smaller economy. add to this the export driven economy and consumers get squeezed from both sides, more costly to import smaller quantities and you have to pay the price a seller can realise overseas for their product, when home i noticed NZ butter products were cheaper in the north of Scotland than new plymouth! but fancy bush honey was on par (smaller import quantities)
          there are however NZ businesses set up purely to "exploit" kiwis possible unwillingness to shop outside the country, this can be seen all over TM and the isolated nature of the imports which you can see in the car industry (a 5min comparison will show you how thoroughly boned we are when it comes to 2nd hand cars!! we get it right in the pooper 99% of the time. it doesn't help that the government run a system of tax and tax to remove the terrible fossil fuel burners from the roads but do nothing to reduce the cost of new cars which run more efficiently? only rewarding electric/hybrid in the short term because when we are all on electric (it will come as soon as double carbon batteries can be utilised fully) the government whoever they are will need to find the new fuel tax from somewhere. although the gas J.A and the green mafia plan on importing from that beacon or fair pay and HSE procedures, the Philippines, is bound to result in a reduction in fuel bills.

          basically: if i as a consumer can save 2/3 the cost of an item with 5min google-fu it means A. your business model is shit, or B: your business is not required. pick one and correct accordingly.

          if you are into books or like me audio books, i can recommend basic economics by Thomas Sowell.

          wandered waaaaay of track there
          Last edited by deerworrier; 12-09-19, 15:41.
          “Strong people are harder to kill than weak people and more useful in general.”


          Despite having the numbers, there is the crazy man in the mountains that none of the tribes will go near!
          Always aim to be that man.

          Comment

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