Setting up GST and currency exchange for Traderunner : Trade Runner Support

TABLE OF CONTENTS

Overview
Examples and Scenarios
2.1. Prices in AU$ without GST, and GST added on Trade Me
2.2. Prices in AU$ with GST, and GST added on Trade Me
3. UK based retailer selling on Trade Me
4. You enter your prices including tax in your home market
5. You enter your prices excluding tax
Further information
Related internal links
External linksGST Collection on TradeMe

Overview

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

From 1 December 2019, if you are an international seller (i.e not based in NZ) on Trade Me GST will be applicable on your products. Trade Me will collect the GST on your behalf and remit it to the New Zealand Government.

The final price on Trade Me 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?
Are you required to pay tax on a sale in New Zealand? i.e. do you need to add the NZ GST component of 15% for the product sale, this now compulsory for International sellers.
Are you using the Trade Runner daily currency exchange rates or you have set your own custom exchange rates?

NB: If you are a large seller and pay GST to the IRD in NZ you can opt out of Trade Me adding 15% to the price of your listings and collecting GST on your behalf. Please contact Trade Me for this.

To check if you need to provide pricing inclusive or exclusive of tax, in Trade Runner go to 'Settings - Trade Me - General' and scroll down to the 'Check now' button. Click this button

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

New Zealand retailer selling on Trade Me.
Australian retailer selling on Trade Me.
1. Your prices in AU$ don't have a 10% AU GST component because either you are not paying tax in AU or the product doesn't require GST, and on Trade Me have a 15% NZ GST component.
2. Your prices in AU$ have a 10% GST component and your prices on Trade Me have a 15% NZ GST component.
UK based retailer selling on Trade Me: same as point 2 for Australian retailers, except the tax component is 20% UK VAT.
You enter your prices including tax in your home market.
You enter your prices excluding tax. It makes it easier to set prices for cross border sales.

Examples and Scenarios

1. New Zealand retailer selling on Trade Me.

Your prices entered in your eCommerce system are in NZ$
There is no currency conversion.
Most likely you don't need to configure anything. Trade Runner 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

2.1. Prices in AU$ without GST, and GST added on Trade Me

Example: your Australian consumer price is AU$ 110.00
The Net price is also AU$ 110, since there is no tax included in the product price.
The Net price in NZ$ using the daily exchange rate of 1.095 is: AU$ 110.00 * 1.095 = NZ$ 120.45
Because there is 15% NZ GST, the final consumer price on Trade Me is NZ$ 138.52
But the ex GST price will be sent back to your eCommerce store as TradeMe will remit the GST on your behalf.

2.2. Prices in AU$ with GST, and GST added on Trade Me

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 Trade Me is NZ$ 125.93
But the ex GST price will be sent back to your eCommerce store as TradeMe will remit the GST on your behalf.

3. UK based retailer selling on Trade Me

The same principles apply as in the examples above, except the standard UK VAT rate is 20%.
But again, the ex VAT price will be sent back to your eCommerce store as TradeMe will remit the GST on your behalf.

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

For Shopify and Bigcommerce, Trade Runner 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, Trade Runner 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, by submitting a ticket.