Overseas customers and GST

Hi all,

Up until now our overseas customers have been supplied our service free of GST (Goods and Services Tax). This is a tax normally applied to all goods and services within New Zealand. 

Following an tax audit of Private Box last year and on-going discussion with IRD it has now been deemed that all customers of Private Box will now be required to pay this tax. 

The section of the GST act that concerns our customers are the following sections: 11A (1) (k) (i) and (ii)http://www.legislation.govt.nz/act/public/1985/0141/latest/DLM83012.html.

Basically as the service cannot be provided without an address the IRD have made the decision that this is directly in connection with "land" and therefore cannot be exempt from GST. 

The IRD has also decided to apply this ruling to the past 30 months of trading which is indeed asking us for a tax which we have not actually collected! We have made arrangements to service this debt internally and will not be asking our customers to contribute to this. 

However - we have been forced to review our pricing structure. 

As of today we will be adding 15% GST charge to all overseas mail forwarding. 

We are committed to providing a cost effective service to our customers and we hope for your understanding in this matter. 

If you have questions regarding the New Zealand tax system please contact IRD directly on +64 4 978 0779. 

If you have any other concerns please email us on support (at) privatebox.co.nz. 

Gareth Foster
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