From 1 December 2019, all product prices and shipping charges on TheMarket will need to include New Zealand GST (15%). 


TheMarket will remit this GST to Inland Revenue on behalf of its international merchants. International merchants do not need to complete GST returns or remit GST to the Inland Revenue themselves for sales via TheMarket. TheMarket will provide GST receipts to customers.


On December 1st, Omnivore will change the prices we send to TheMarket to include GST.


How to set up your Product Price to include GST via Omnivore (nb this will be turned on automatically for all retailers on 1st of December

  • In Omnivore, go to 'Settings - TheMarket - General'
  • Under the section 'My Products', check the box 'Products Are Taxable, ie: retailer pays tax in the marketplace country'  then click 'Save'
  • Go to 'Products - On TheMarket' and check that the price's show as including GST



How to set up your Shipping to include GST

  • Shipping charges are not set up in Omnivore, they are set up in the Retailer Admin site of TheMarket. 
  • All shipping charges in the shipping table will be deemed to be GST inclusive. 
  • For example, if you have shipping set at $10 in the shipping table. We will calculate the GST exclusive shipping charge and GST. In this case the shipping charge remitted to you would be $8.70, with $1.30 GST being remitted to Inland Revenue by TheMarket. 
  • We recommend you review shipping charges prior to 1 December and are ready to update them on 1 December 2019 if necessary. 


How Omnivore determines the price of your products on TheMarket - from 1 December 2019


The price of your product listing on TheMarket is affected by the tax component and the currency exchange rate if your store currency is not NZ Dollar (NZ$).


The final price on TheMarket depends on the following:

  • Is the product taxable in your home country? i.e. the price we retrieve from your ecommerce system has a tax component included?
  • For products that do have tax, do you enter the prices with or without the tax component?
  • Are you using the default Omnivore daily currency exchange rates or you have set your own custom exchange rates?


Depending on the answers to the above questions, you will likely use one of these scenarios:

  1. New Zealand retailer selling on TheMarket
  2. Australian retailer selling on TheMarket.
    1. Your prices in AU$ have a 10% AU GST component because you are paying tax in Australia
    2. Your prices in AU$ have a 10% GST component and your prices on TheMarket have a 15% NZ GST component.
  3. UK based retailer selling on TheMarket: same as point 2 for Australian retailers, except the tax component is 20% UK VAT.
  4. You enter your prices including tax in your home market.
  5. You enter your prices excluding tax. It makes it easier to set prices for cross border sales.


Examples


New Zealand retailer selling on TheMarket

  • Your prices entered in your ecommerce system are in NZ$
  • There is no currency conversion.
  • Most likely you don't need to configure anything. Omnivore should understand if the product is taxable or not and accordingly calculate the NZ GST component. 
  • If you sell a mix of both taxable and non taxable products and your ecommerce system is Magento, you might need to set the GST free classes in Settings -> Feeds -> Non taxable classes


Prices in AU$ with GST, and GST added on TheMarket

  • Example: your Australian consumer price is AU$ 110.00
  • That means a Net price of AU$ 100.00 and a GST component of AU$ 10.00
  • The Net price in NZ$ using the daily exchange rate of 1.095 is: AU$ 100.00 * 1.095 = NZ$ 109.50
  • Because you are paying GST in New Zealand, there is a 15% GST component added to the NZ$ Net price: 109.50 * 1.15 = 125.925 rounded up to 125.93
  • The final consumer price on TheMarket is NZ$ 125.93


3. UK based retailer selling on TheMarket

  • The same principles apply as in the examples above, except the standard UK VAT rate is 20%.


4. You enter your prices including tax in your home market

  • For Shopify and Bigcommerce, Omnivore can retrieve this information automatically, you just need to ensure you have correctly setup your ecommerce system.
  • For Magento, this is assumed to be true by default.


5. You enter your prices excluding tax

  • For Shopify and Bigcommerce, Omnivore can retrieve this information automatically, you just need to ensure you have correctly setup your ecommerce system.
  • For Magento, you will need to let us know if this is the case.


Further information


Related internal links

Can I set the exchange rate that Omnivore uses?

What currency will my order be sent back to my ecommerce store in?


External links

GST in Australia

GST in New Zealand

VAT in UK

GST calculator Australia

GST calculator New Zealand

VAT calculator UK

Shopify - Taxes

Bigcommerce - Taxes

Magento 1 - Taxes

Magento 2 - Taxes