Overseas retailers hit with new GST laws

New GST laws may affect online shoppers from today. Photo / NZME

If you're looking to complete your Christmas shopping online - you might find some retailers' prices have increased.

New tax laws kick in today - any international retailers trading here, that make more than $60,000 in sales a year, will have to pay GST.

Retail NZ chief executive Greg Harford says they can either absorb the cost, or hand it on to customers.

He told Newstalk ZB's Andrew Dickens he doesn't think retailers will pull the pin and decide to stop selling here, saying most businesses have systems to collect local sales taxes.

Harford says the Australian government introduced similar rules and compliance has been very high.

"I think most of them will certainly keep selling into New Zealand," he said.

"The reality is mostly we're talking about very large retailers with big businesses who already have the systems to collect sales taxes, they just need to switch them on."

Harford says they can either absorb the cost, or hand it on to customers.

He says he doesn't think retailers will pull the pin and decide to stop selling here.

- Staff Reporter