GST On Imports In New Zealand: What Businesses Need To Know

If you’re importing stock, equipment, or materials into New Zealand, you’ll eventually run into one of the most common “surprise” costs for small businesses: GST on imports.

Sometimes it’s straightforward. Other times, it feels like the numbers don’t add up, the freight bill keeps changing, and you’re not sure whether you can claim anything back (or when).

The good news is that once you understand how GST on imports generally works in New Zealand, you can price your products properly, manage cashflow, and avoid compliance headaches later. Let’s break it down in plain English.

Note: This article is general information only and isn’t tax advice. Import GST can depend on your specific facts (including who the “importer of record” is, the value of the goods, and the supplier/marketplace arrangements). It’s a good idea to check the rules with New Zealand Customs and Inland Revenue (or speak with your accountant or tax adviser).

What Is GST On Imports (And Why Do Businesses Get Caught Out)?

In New Zealand, GST (Goods and Services Tax) generally applies to goods and services supplied in NZ. But it can also apply when goods enter the country.

That’s what people mean by GST on imports: GST charged on goods brought into New Zealand from overseas.

Businesses often get caught out because:

• It’s often paid at the border (or shortly after), not when you sell the goods.
• It can be based on more than just the purchase price (freight, insurance, and duties can be included in the calculation).
• It can affect cashflow, even if you may be able to claim the GST back later.
• Different rules can apply depending on whether you’re importing commercial quantities, using a freight forwarder, whether the goods attract duty, and whether GST was charged by an offshore supplier/marketplace at checkout.

As a general rule, it helps to think of import GST as part of your “landed cost” (your true cost to get the product into NZ and ready to sell).

When Do You Pay GST On Imports In New Zealand?

For many business imports, GST is collected by New Zealand Customs when your goods arrive in NZ (often as part of the clearance process).

In practical terms, you may pay GST on imports when:

• Customs assesses your shipment and issues charges; and/or
• Your freight forwarder or customs broker pays it on your behalf and invoices you before the goods are released.

That means you often have to pay GST before you’ve sold the goods and earned revenue from them.

Is GST Always Charged On Imported Goods?

Not always at the border. Whether GST applies (and whether it’s collected by Customs) can depend on factors like:

• the value of the imported goods (including whether they fall under the “low value imported goods” rules),
• whether the supplier, platform, or marketplace has already charged NZ GST at checkout (common for low-value goods bought online), and
• whether the goods fall into categories that attract duty or specific import requirements.

As a rough guide, low-value goods may have NZ GST charged by the offshore supplier/marketplace at the point of sale, while higher-value shipments are more commonly assessed by Customs at the border. The detail can vary, and it’s important to confirm which regime applies to your shipment and who is responsible for charging/collecting GST.

Because the “who charges what, and when” can vary based on how the goods are supplied, you’ll want to keep clean documentation for each import so you can reconcile it with your GST returns.

If you’re running an ecommerce business and also collecting customer data for orders and shipping, it’s also worth making sure your website legals are set up properly, including a Privacy Policy.

How Is GST On Imports Calculated?

GST on imports is typically calculated at 15%, but the important part is: it may not be 15% of what you paid the supplier alone.

While the exact calculation depends on the circumstances of the import, import GST is commonly based on the value of the goods plus certain “border costs” (for example, freight and insurance to get the goods to New Zealand), and it can also interact with any duty that applies.

This is why you might look at a shipment and think:

• “The goods were only $2,000, so why is the GST more than I expected?”
• “Why am I paying GST on shipping?”
• “Why does it look like I’m paying GST on duty as well?”

For pricing and profit margin purposes, the key takeaway is this: your landed cost is usually higher than the invoice value, and import GST can be part of that up-front cost even if you later claim it back.

Don’t Forget Duty And Other Border Charges

Depending on what you’re importing, you might also face:

• customs duty (varies by product type and origin),
• import entry / processing fees,
• biosecurity or MPI-related charges (common for certain product categories), and
• port / handling / clearance fees.

These amounts might not be “GST” but they still impact what you need to charge your customers to stay profitable.

And if you’re relying on supplier quotes when setting your pricing, it’s worth knowing when a quote becomes enforceable. This can be especially relevant when you’re negotiating shipping and supply terms: Is A Quotation Legally Binding?

Can You Claim Back GST On Imports?

Often, yes. If your business is registered for GST and the imported goods are for making taxable supplies (for example, you’re importing stock to sell), you can generally claim the import GST back as an input tax deduction in your GST return (provided you have the right evidence).

But here’s the part many small businesses miss: claiming it back doesn’t mean you don’t need to pay it up-front.

Also, if NZ GST was charged by an offshore supplier/marketplace at checkout (instead of being paid at the border), your documentation and GST return treatment may be different - so it’s worth confirming the correct approach with your accountant or tax adviser.

So while import GST may be recoverable, you still need to plan for:

• cashflow timing (you may pay now and claim later),
• evidence (you’ll need the right import documentation), and
• correct GST return treatment (so you don’t accidentally over-claim or under-claim).

What Records Should You Keep?

To support your GST position (and to keep your accountant happy), you’ll usually want to keep a clear file for each shipment, including:

• the supplier invoice,
• shipping / freight invoices,
• customs or broker documentation showing GST and duty paid (where GST/duty is assessed at the border),
• evidence of payment, and
• the import entry or clearance paperwork (if applicable).

Good record-keeping also helps if you’re ever asked to substantiate claims. It’s not about expecting a problem-it’s about being able to prove your position quickly if questions come up.

Common GST On Imports Scenarios For Small Businesses

GST on imports can feel abstract until you apply it to your day-to-day operations. Here are a few common scenarios we see with NZ small businesses.

1. You Import Stock To Sell In NZ

This is the classic scenario: you buy products overseas, import them, and then sell them locally (online or in-store).

In this case, import GST often becomes a cashflow and pricing issue. You’ll want to:

• factor GST and border costs into your landed cost,
• make sure you’re charging customers correctly (including output GST, if registered), and
• avoid underpricing based on the supplier invoice alone.

If you sell online, you’ll also want terms that match how you actually operate (delivery timeframes, risk in transit, returns). Having clean Online Shop Terms And Conditions can reduce disputes when shipments are delayed or when customers change their mind after ordering.

2. You Import Equipment Or Assets For Your Business

Maybe you’re importing a piece of machinery, a coffee machine, a laser cutter, or devices for your service business.

Even though you’re not “selling” the item, GST may still apply when it’s imported (either at the border or at checkout, depending on the circumstances). Whether you can claim it back will depend on your GST registration and how the asset is used in your business.

This is also a good time to think about what happens if the equipment is defective or not fit for purpose, and what your supplier’s contract says about liability and warranties. If you’re selling goods yourself, it’s worth understanding how warranties and consumer rights fit together: Warranties In NZ Law.

3. You’re Using Overseas Suppliers And Dropshipping

Some business models involve overseas fulfilment (including dropshipping). This can create extra complexity because:

• the customer might be the importer (depending on how it’s structured and what your terms say),
• GST might be charged at checkout by an overseas platform or marketplace (particularly for low-value goods), and
• your customer experience can fall apart if you haven’t clearly explained taxes and delivery responsibilities.

This is one of those situations where it’s worth getting the legal and tax structure right early, because the “importer of record” and the contract flow matters.

Practical Tips To Manage GST On Imports (Without Killing Your Cashflow)

GST on imports is a compliance issue, but it’s also a business operations issue. Here are some practical ways to stay on top of it.

Build Landed Cost Into Your Pricing Model

If you price products based on the supplier invoice and ignore border costs, you can end up:

• selling at a lower margin than you think,
• needing sudden price increases (which can upset customers), or
• running short on cash when the shipment lands.

A simple approach is to build a landed-cost worksheet that captures:

• purchase price,
• freight and insurance,
• duty (if any),
• GST (whether paid at the border or charged at checkout), and
• broker / clearance / port fees.

Plan For Timing Differences

Many businesses pay import GST weeks before they make the first sale from that shipment.

So it’s worth asking:

• How often do you import (monthly, quarterly, seasonal)?
• What are your GST filing periods?
• Do you have enough working capital to cover border charges?

This is especially important if you’re scaling quickly. When you’re importing more often or placing bigger orders, GST on imports can jump sharply even if your sales haven’t caught up yet.

Make Sure Your Supplier Agreements Match Reality

Tax is only one part of the risk profile with imports. If your supplier agreement is vague, you can run into issues like:

• who bears the risk if goods are damaged in transit,
• what happens if goods arrive late,
• who pays for return shipping or replacement, and
• what warranties apply.

For many small businesses, having strong supply terms in place is what prevents an “import GST issue” from turning into a much bigger dispute. If you’re supplying goods or services to customers, it may also be time to formalise your Business Terms.

Think About Your Broader Compliance (Not Just GST)

Importing goods often goes hand-in-hand with other legal compliance areas, such as:

• consumer law (especially if you sell to consumers and advertise delivery timeframes),
• product safety and product claims (what you say the product does has to be true and supportable), and
• marketing law (your ads and pricing should be clear and not misleading).

Most NZ small businesses need to comply with the Fair Trading Act 1986 (misleading or deceptive conduct) and the Consumer Guarantees Act 1993 (consumer rights around quality, fitness for purpose, and remedies). These aren’t “import laws” as such, but they matter a lot once you start selling what you import.

And if you’re hiring staff to help pack orders, manage inventory, or handle customer service, make sure you use a proper Employment Contract so expectations (hours, duties, confidentiality) are clear from day one.

Key Takeaways

• GST on imports is a common cost for NZ businesses bringing goods into New Zealand, and it often needs to be paid before you can access or sell your stock (especially where Customs collects it at the border).
• Import GST can be calculated on more than just the supplier invoice value, so it’s important to include shipping, duty, and border charges when estimating your landed cost.
• If you’re GST-registered and importing for business purposes, you may be able to claim GST back in your GST return, but you still need to manage the up-front cashflow impact and make sure you’re using the right documentation for the way GST was collected (at the border vs at checkout).
• Keeping clean documentation for every shipment (invoices, import entries, broker statements, and proof of payment) helps you stay compliant and makes GST reporting far easier.
• Importing is rarely “just tax” - your contracts, consumer law obligations, and online sales terms all play a role in reducing disputes and protecting your margins.

If you’d like help getting the legal side of importing right (from supply terms to ecommerce terms and broader compliance), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.