Home – New Forums Logistics NZ/AUS Companies trading in either country and associated tax issues

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  • #973237
    Tip
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    Hey Flying Solo

    Wondering if anyone could shine some light on a problem we are facing. We are currently a partnership trading in Australia in the clothing retail sector. As we were getting alot of our product made in Australia it was a good idea for us to be trading over here (For GST purposes etc).

    However we are thinking of getting our stock produced in NZ as it is alot cheaper. As we are kiwi’s we were thinking of forming a compnay over there (as we would be getting all our product made over there it made sense for GST/tax purposes).

    Our question is: How does a company go about selling products online and what is the story with GST?? eg. If we were a NZ company selling product online to an australian customer, what happens with GST etc. Do we still collect it but pay it in NZ??

    We are trying to weigh up the benefits of starting a company in either NZ/Aus. NZ is alot cheaper to start a compnay compared with Aus so we are thinkin of that. It’s just the Tax issues that are getting us stumped. We understand that if we sell to an Australian shop we do so at wholesale and no GST is involved.

    Thanks alot

    #1060553
    StellarScott
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    If the cost of the goods landed in Australia is greater than $1,000 then the importer will be responsible for payment of Australian GST as well as any duty customs charges etc prior to the goods being released.

    Before considering manufacturing in NZ (or anywhere else) make sure you consider all the costs including Freight; as well as reliability of supply

    I’d be sitting down with an accounting professional to help you work through the numbers. Sometimes amazing what an outsider can shed light on

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