Amazon Tax: What You Need to Know & Beware of This Trap |
|
In some cases, you still have to pay duty and nobody will tell you until it arrives in NZ.
🚨↓↓↓ Click SHOW MORE to read the rest of this story ↓↓↓ 🚨 YOU’LL LEARN: - What you have to know about Amazon Tax - Who benefits from this new tax - Current GST rules, how and when they are going to change - How much you can spend on customs clearance, including customs broker fee - What you should be aware of in regards to Amazon Tax TABLE OF CONTENTS: 01:09 – Current taxation rules 01:43 – New rules 05:10 – The trap 07:03 – Food for thought 08:19 – Summary TRANSCRIPTION: Max: Hello. You are watching the replay of the live stream. Today we are talking about Amazon Tax, what you have to know, and one thing you have to avoid. My name is Max; this is Alex, we are from an Auckland based freight forwarder. Alex, tell us. Alex: Amazon Tax. Everyone keeps talking about Amazon Tax, it’s in every newspaper right now, lots of people got worried – ‘What does it mean for all of us?’ And we will try to get into it and explain how it works. Max: And especially how it affects you. Alex: My personal opinion – I’m still not sure is it good or is it bad. Max: Come on! Why is it good if I’m spending more? Any tax is bad, right? Alex: Supposedly, it’s going to be good for retail businesses, who will be able to now compete with overseas suppliers of cheap goods. And of course, it’s going to be good for government because they get additional tax, and they will spend more money, which is a lame excuse to introduce a new tax. #1. CURRENT TAXATION RULES Alex: Well, let’s explain what it is and what it means. Basically what it is now is as soon as you get $60 worth of tax, you will have to do a proper customs clearance to your goods, and it will include a number of things. What they want to do – they want to introduce a new tax and put a new cap. Max: Well, let’s be honest – it’s not a new tax, GST has been forever, right? They’re just going to calculate it differently. Alex: It used to be roughly $400 upwards you’ll have to pay the tax, which is what it is now. #2. NEW RULES Alex: From the 1st of October 2019, they want to do it reversed, so you’ll have to pay GST on the first $400 worth of your goods. To make the things simpler – they would like to make it just a value-based one, $400. So, basically, before you had to use the calculator and try to figure out, what’s going to be your tax, what’s going to be your freight, what’s going to be your customs broker’s fee, different exchange rates. Now, you’re going to be just buying things on the spot, say, Amazon – that’s why it’s called Amazon Tax – and any other significant supplier, big Internet platform like – tell them, which are they? Max: AliExpress, eBay or any other website. Alex: And that supplier will charge you on the spot. So, for example, if you’re buying something worth $300 or $200, they will charge you 15%, and you will pay on the spot all these money. And then your goods are shipped to New Zealand, and then you get them freely, without any customs clearances whatsoever. But I have to say, if, for example, right now, say, you’re buying a pair of shoes worth 200 US dollars, if you add freight on it, they might be just over $400 in value or $60 in tax. So, you’ll have to do a proper customs clearance, right? Max: Well, it’s not all $400, because if you convert it from US dollars to NZ dollars, it’s going to be less than $400, but because there is a duty, which nobody tells you about when you buy it … Alex: And in total it’s going to be $60 worth of tax, then it means that you are required to do the customs clearance. Once you do that, you’re going to go to a customs broker, you’re going to spend money on him. Max: How much they charge? Like in New Zealand it will cost you anywhere between $50 to $60. Is it plus GST or is it included? Alex: No, it’s plus GST. And you have to pay to customs another $50. So, in total, your shoes will be worth not $200 that you have paid for them initially, but also those charges on top. So, you end up paying $500-$600 for a pair of shoes. If you would like to learn other tips then read here: https://easyfreight.co.nz/blog/amazon-tax-import-gst-duty/ 🔔 Subscribe now so you do not miss the next video! ➜ https://www.youtube.com/channel/UChpXSIpTmB6ZqZIarBT6BvA?sub_confirmation=1 👍 Like the video, if you want to see more like that. 💬 Comment below - We read every comment! 👥 Join Importers & Exporters FREE Facebook “private” group - https://www.facebook.com/groups/NZimporters/ 💼 Check out our website and save money on your Imports & Exports https://EasyFreight.co.nz/ 👥 Join Auckland Entrepreneurs FREE Facebook “private” group - https://www.facebook.com/groups/AKLEntrepreneurs/ |