Literally our reaction right now:
Revenue Minister Stuart Nash has confirmed the Government will "absolutely" move to apply GST to online purchases of physical goods from overseas.
Under current law, most items costing less than $400 can be bought tax free from overseas, unless they are items that attract duty, in which case, the tax-free threshold falls to $240. Speaking with NZME, Nash said:
[The National] Government did not do enough about this, so what happened... a 15 per cent competitive advantage to those overseas.
While our retailers had to deal with GST, overseas people didn't.
Retail NZ has estimated the tax may bring in up to $235 million a year, rising to $935m within nine years, as the e-commerce sector grows.
In October last year, the National Government introduced a "Netflix tax", which required foreign companies to levy GST on all digital services sold to New Zealand, such as streaming television, music and gaming subscriptions.
The good news there's no timeline set for the introduction of the new tax so get online and start shopping ASAP.