Update on change in depreciation rates for used motor vehicles

This change is that from 1 March 2020, Customs will follow the straight line rate used by Inland Revenue where depreciation is applicable when valuing imported used vehicles.

As a result of advertising this change a submission was received advising that a number of importers would be adversely affected by the change. These importers include those that have pre-purchased vehicles overseas under a “Tourist Delivery” scheme, whereby they can buy vehicles on a VAT free basis subject to the vehicles being owned and used overseas prior to export within a given period (normally a year).

To assist such importers it has been decided that importers who can supply proof that the vehicles were purchased prior to 1 March 2020, and that the vehicles are imported into New Zealand prior to 1 March 2021, will be allowed to use the old depreciation rates for Customs purposes.

This includes importers who have made a deposit on a vehicle.

To use the old rate, importers must:

• provide proof that they have a signed “contract of sale” to purchase before 1 March 2020; and
• the vehicle must be imported into New Zealand prior to 1 March 2021.

Correction: the original email address for further information was modified on 17 September 2020.

If you have a query about the depreciation of imported motor vehicles, please contact feedback@customs.govt.nz

For queries specifically related to the change in the rate of depreciation, please contact voc@customs.govt.nz

This information has now been superseded. Visit the Vehicles, Boats and Planes webpage for up-to-date information.