Import Tax

[Guest]

Thanks for your query.

 

 

 

If the vessel is to be entered in NZ permanently then Duty of 5% will apply only to the purchase value of the yacht, and then GST of 12.5% will apply to the purchase value + shipping (doesn’t apply if you are sailing it into NZ) + insurance+ Duty payable in NZ Dollars.

 

 

 

Here is an example:

 

To work out Duty: $100,000 purchase value of yacht x 5% Duty rate = $5000 Duty payable

 

To work out GST: $100,000 purchase value of yacht +shipping (doesn’t apply if sailing the vessel) + $5000 Duty x 12.5%= $13,125 GST payable

 

Total payable: $5000 Duty payable + $13,125 GST = $18,125 total payable

 

 

 

If you are sailing the vessel to NZ you need to give NZ Customs an advanced Notice of arrival this is done on the attached form NZCS 340 no less than 48 hours before the intended arrival, Once you have arrived you will be unable to leave the Customs port of entry until the Customs Clearance has been completed. This clearance can be completed and charges paid at the port of entry.

 

 

 

Please find the attached fact sheet which details the Customs ports of entry.

 

 

 

Regards

 

 

 

Yours Sincerely

 

 

 

Daniel Wrightson

 

Customs Officer

 

National Call Centre

 

Ph: 0800 428 786 Fax: 09-359 6730

 

For the Manager Client Service

 

Auckland City Trade and Marine

[Guest]

Yeap he's right.

And what a bargain, less than 2 years ago the duty was 7%

 

If the boat isn't staying here get a Temporary Import Exemption (TIE). That will give you a time frame, max 12 months often less but sweet talk, before they come hunting for your cheque book to collect the GST and Duty or ask you to please bugger off out of NZ.

 

Duty doesn't apply if the boat was built in NZ or Aussie. GST still does though.

 

Going through exactly that at the moment with a boat we are trying to buy. The seller doesn't understand how the GST works and wants me to pay twice. I don't think so.

[floatsome 0]

What do you mean KM about paying GST twice? Are you talking about a returning NZ boat? If so i am afraid to say that this is irrelevant and GST will be applicable in most cases...

[Guest]

Or are you trying to get the Aus GST off the purchase price?

[Guest]

No. Trying to buy a boat that is 'foreign vessel' in the eyes of Customs. The dude wants coin plus GST even though the money is going offshore. If I make the boat a NZ boat the Customs also want GST.

 

Basically either he 'imports' the boat and pays the GST and I pay him for the lot or he just doesn't charge GST and I worry about importing it and the GST with that. Just trying to sort that out as I don't think he quite grasps it all quite right. As it makes 35K odd difference to my bank account I am wanting it sorted one way or another.

 

I think the preference is a no GST deal and I'll leave the boat offshore registered for a bit. Could be handy to get around a few silly NZ Regs in the shorter term. She is a fully registered ship in a country of semi-convenience so I can employ foreigners at $1 per hour, how cool is that?

[Guest]

Am I correct though that if you purchase a NZ built boat out side of NZ, and that the GST was paid before it left, you can bring it back with zero charge?

[Guest]

Don't know but trying to find out Squid. I'll let you know.

[Guest]

Am I correct though that if you purchase a NZ built boat out side of NZ, and that the GST was paid before it left, you can bring it back with zero charge?

 

I doubt it, GST is paid once on a boat and thats when the boat is made, if the manufacturer exports the vessel all duties and GSt are refunded at time of export, if the boat remained in the US say , and was sold to a NZ'r and was sailed back to NZ and re imported GST would be payable but no duty.

 

If for instance a second hand boat was bought in NZ and exported/sailed to US there would be no GSt refund as there was no GSt paid at time of purchase

(no GSt on second hand stuff except on services ...bit like a real estate agent fees)

 

think Im right in this KM will know!

[SloopJohnB 322]

So if you so called sold a boat for mil to the states and claimed the gst, a couple of years late you brought it back for 1/2 mil and paid the gst you just made 62.5k.

 

If you do it now and buy back after the 15% you will be in more money.

[Guest]

Not quite the scenario I have in mind.

 

More like mom and pop cruiser head off into th ewild blue yonder. After a few years they are in Greece, he has a heart attack and the boat is on the market. Not a lot of interest over there as it is your classic Kiwi one off in 3 skin kauri, price comes down, now looks a good deal and to the best of my knowledge GST was never reclaimed when they left as it was their intention to sail it home one day.

[Murky 1]

Is it "score a cheap boat" week on crew.org? High up in the active topics are Depth Charge, Westy Express and this thread.

 

Or is it always "score a cheap boat" week and some weeks are just more obvious than others.

[Guest]

Not quite the scenario I have in mind.

 

More like mom and pop cruiser head off into th ewild blue yonder. After a few years they are in Greece, he has a heart attack and the boat is on the market. Not a lot of interest over there as it is your classic Kiwi one off in 3 skin kauri, price comes down, now looks a good deal and to the best of my knowledge GST was never reclaimed when they left as it was their intention to sail it home one day.

With that scenario the boat wasnt exported, so if it came back to NZ no duty or gst ,but i think if it was sold over there and and came back to NZ under a different owner that might change things from a customs point of view

[floatsome 0]

I agree Pales, it is all dependent on the transaction or lack of transaction and the exporting/importing entity. If the boat in Greece was sold in NZ probably no gst but important that you get clarification. However if the boat was bought overseas, say either as a bonafide gst export product or from a overseas owner and not the original NZ owner then GST is applicable. A lot of people fall into this trap thinking that there is no duty OR GST.

Bottom line, if you contemplating this get an opinion either from Customs or a suitable accountant or Customs Broker.

[Guest]

im a customs broker Floatsome

[Guest]

So no clear answer.

 

From a natural justice point of view I can't see how they can expect to be paid twice for the same boat.

[Guest]

Agree with whomever said it all tracks back to the transaction that happened when the boat left NZ. This is as I understand it so use it if you like but don't rely on a Judge to think the same as me.

 

If the lovely Mrs Squid and her mate, that Squid dude, brought a boat here and buggered off into the deep blue and in a few years time wondered home again on said boat. No Duty or GST.

 

If Mrs Squid brought a boat in Aussie that was built there and after a while ended up back in NZ. No Duty (CER) but GST does apply.

 

Mrs Squid buys a US made boat in the US and gets that occasional dodgy pet skipper of hers to drive it home. Duty and GST apply.

 

Now a NZ built boat that has gone offshore and then comes home doesn't attract duty. But with GST it depends on what happened when it left here, as I understand it. If you build a boat and sell it offshore I'm pretty sure you can't claw the GST content back.

 

A commercial boatbuilder would be claiming GST back on the gear purchased, as all business's do on their return each period. He would have to charge GST on the finished item if he sold it into NZ but knot if he sold it to Whykickamoocow (knot the one by Whataphuka, the one by London) he doesn't charge GST.

 

Mrs Squid (the nice one) selling Squid (the green floating one) out from under Mr Squid (the shiny topped one) to some nice Nigerian she meet on the interweb is a GST free transaction, as in she shouldn't be adding GST.

 

The bit that I'm still trying to get a solid Yes or No about is what happens to that NZ build boat when it comes home. It appears that in most cases GST does apply but there is the odd time it doesn't. The odd times are few and far between though.

 

FYI - If they have been living on the boat a few years and were still when back here, I know a few people have talked nicely to Customs and after promising they won't sell it for 2 years, Customs have waved the GST. Good on them for thinking like real reasonable people. But again it's very much case by case using discretion rather than a hard and fast law. So don't rely on them saying Yes if you ask to do the same at some stage.

 

It's the government Squid so you are deep into oxymoron territory when mentioning natural justice and them in the same breath. You want to see what I just pinged IRD on this morning, pure unadulterated lies, and knowingly so as well. The blatant lying bunch of thieving pricks. That's on top of incompetent and the 'I just don't give sh*t, I'm only here to read the newspaper' attitude. It's no f**king wonder the government needs so much taxes, we are paying 1000's of people to be brain dead don't give a f*ck bureaucrats.

[Guest]

So no clear answer.

 

From a natural justice point of view I can't see how they can expect to be paid twice for the same boat.

 

In our scenario Squid a couple buys a second hand boat in NZ , gst has been paid by the builder of this boatduring its construction,so your couple buy the vessel without having to pay GST on the purchase, they bugger of to wherever and come back to nz in a couple of years and on arrival in NZ they do not have to pay GST , therefore in this scenario the Govt only got the GSt once and that was at the build stage.

If in another scenario a say a well known builder for yachts that are destined to go to an overseas byer, the builder will do a drawback from Customs and get all duties and GSt refunded when the vessel leaves our shores. (therefore the NZ Govt misses out) however if the vessel comes back to NZ say with a the existing owner) and intends to be domiciled here customs will want duty and GSt paid on the current value of the vessel..unless he comes in under a tempory import .

[Guest]

All that makes sense, but what KM seems to be suggesting is that you "might" have to pay GST if

1) boat built here

2) GST paid

3) boat sails away

4) tax is never claimed back as the owners were intending to return.

5) change of plans and boat is sold outside NZ (assume duty etc paid somewhere else)

6) another NZ owner buys boat and returns to NZ

 

To my mind it should be clear cut that the boat does not owe anything and GST should not be charged a second time. But I'm being told there is no hard and fast rule and I would be at the mercy of some govt ning nong. Sounds like a Banana Republic to me.

[wal 27]

im a customs broker Floatsome

 

 

So's he

[Guest]

Apart from starting to lose faith in Customs Agents

 

You think you can claw back the GST on export Pales?

 

I tried that as was told a big Nope. There is the odd occasion where you can get special dispensations like, as I understand it, Alloy yachts and Southern Spars type outfits. I think they get a lot of stuff GST exempt as they know it's going offshore once attached to some big floating apartment. But then I read something where that may have changed very recently, catching SS on the hop. I'm sure they will work it through.

 

Hopefully I'll have more detail from Customs in the AM. The questions been asked so now we wait for the bureaucrats to double check their arses are well covered before replying.

 

Here at the oriface we have to charge GST on anything 'delivered to a NZ address' unless it's a bond store on the way to a ship/jet plane ride or someone gives us a Temp Import Exemption bit of paperwork. No other exceptions allowed. We claim the GST we paid for the items back come next return.

 

Hey, if it was easy we would have 20% unemployment. We do need government depts to give the appearance a lot of the population is actually working even if they aren't.