Retail NZ says new tax laws will level the playing field for Kiwi businesses.

The law change has come into effect, and means international online retailers making more than $60,000 a year and trading in New Zealand, will have to pay GST.

Chief executive Greg Harford told Kate Hawkesby it's been a long time coming.

"New Zealand retailers have had to pay GST for everything they've sold online for years, and it's absolutely right that foreign firms doing business here in New Zealand should pay their share of GST as well."

He says it's up to the companies whether they absorb the tax, or pass it on to the customer.

"It is really going to depend on how competitive online retailers want to be when selling into New Zealand."