Overseas Shopping Update

Well, December 1 is here, and with it, the change in GST rules for overseas shopping. If you’re not sure what this is, check out my previous post. Now, any good (or order) that is under NZ$1,000 will be charged 15% GST, while goods over NZ$1000 will continue to be charged customs & duties. Companies that sell more than $60,000 worth of goods into New Zealand are required to register with the Government and collect the GST. (Fun fact, according to this IRD website, “Overseas businesses who do not meet our NZ$60,000 registration threshold are not required to register for GST in New Zealand. This means you may not pay GST on all items you import.”)

I visited Amazon today to see what this meant, as there was a lot of fear that Amazon would no longer ship to New Zealand. Amazon US most definitely will, but now items are more expensive because 15% is now charged to both the goods ordered and shipping charges. This means that my item which would’ve cost $23.99 + tax, or $25.97, is now $38.66, or 38% more expensive than it would be if I were to buy the same item in the US. Previously, it would’ve been 28% more expensive.

The sites that I’ve found that are still shopping to New Zealand include:

Another good resource is to follow the shops using Borderfree for international shipping. Some, like Neiman Marcus, will give you free shipping over a certain level using Borderfree. Some, like Hanna Anderson, will charge you a ridiculous amount in shipping using the same service.

Unfortunately, my beloved Shopbop isn’t currently shipping to New Zealand. I might cry. In an email response, they said they apologize for the inconvenience, and they’ll let me know “if the restrictions change.”

I sent an inquiry to customs to ask for a list of all of the overseas companies that registered to collect GST. The response that I got was disheartening:

I’ve followed up with Inland Revenue, but so far, no response.

So basically it is a crap shoot. You may fill up your cart only to find that a company is no longer shipping to New Zealand. One of my friends spent 45 minutes filling up her Motherhood Maternity cart, only to find they no longer ship here. I know the point of the GST changes is to make New Zealand stores more attractive, but the big problem with this plan is that while stores in New Zealand may become less expensive price wise, there is very little variation among stores. To find something unique, the only option is to look abroad, and there is a real value in that. Unfortunately, shipping via YouShop is often more expensive and always a lot more time consuming than having a shop ship directly to New Zealand. I think the government could at a minimum provide a list of overseas sites that are ready and able to provide goods to New Zealand.

Please comment below and let me know if there are sites that you’ve found that no longer ship to New Zealand. Maybe if we all work together we can compile our own list.