New Zealand Low Value Goods GST: What Amazon Sellers Need to Know
New Zealand requires 15% GST on low value goods ($1,000 NZD or less) sold to NZ customers by overseas sellers. Amazon automatically calculates, collects, and remits this tax at no additional cost to sellers.
Overview
Since December 1, 2019, New Zealand has required goods and services tax (GST) to be collected on low value goods (LVG) — items with a customs value of $1,000 NZD or less — sold by overseas sellers to customers in New Zealand. For Amazon sellers with a business address outside New Zealand, Amazon automatically handles the calculation, collection, and remittance of the 15% GST on qualifying orders.
Key Points / What Sellers Need to Know
- 15% GST applies automatically — Amazon calculates and adds GST at checkout on top of the item price and delivery charges you set, so your pricing remains GST-exclusive.
- $1,000 NZD threshold — Only items with a customs value of $1,000 NZD or less are classified as low value goods and subject to this tax. Higher-value items are handled through standard customs duties at the border.
- No seller fee for GST collection — Amazon does not charge sellers any additional fee for calculating, collecting, or remitting New Zealand GST on LVG orders.
- Business address determines responsibility — If your Seller Central business address is outside New Zealand, Amazon handles GST. If your address is in New Zealand, you remain responsible for collecting and remitting GST yourself.
- Customs documentation matters — Seller-fulfilled shipments require proper customs paperwork. Packages without the required documentation or GST collection may be held, seized, or subject to fines at the New Zealand border.
How Amazon Calculates and Collects GST
When a New Zealand customer purchases a low value item from an overseas seller, Amazon adds the 15% GST at checkout on top of the seller's listed price and any additional charges such as shipping and gift wrap fees. The GST is applied per item, not based on the total order value — meaning each qualifying item in a multi-item order is assessed individually. Sellers do not need to adjust their pricing, as the tax is calculated separately and charged to the buyer. Amazon then remits the collected GST directly to New Zealand's Inland Revenue Department (IRD) on behalf of the seller.
Identifying GST Orders and Reporting
Analysis & Recommendations
Why This Matters
Sellers shipping to New Zealand need to understand that Amazon handles 15% GST on items under $1,000 NZD automatically. Accurate business address information in Seller Central is critical, as it determines tax responsibility and compliance obligations.
Key Takeaways
- Amazon automatically calculates, collects, and remits 15% GST on low value goods shipped to New Zealand at no cost to sellers
- Only items with a customs value of $1,000 NZD or less are subject to the LVG GST regime
- Seller-fulfilled shipments require proper customs documentation or risk delays, seizure, and lost revenue
- Your Seller Central business address determines whether Amazon or you are responsible for GST compliance
Recommended Actions
- →Verify your merchant business address in Seller Central is accurate to ensure correct GST handling
- →Review customs documentation requirements if you seller-fulfill orders to New Zealand
- →Direct any customer GST refund inquiries on LVG orders to Amazon rather than handling them yourself
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