GST Registered Business to Pay No GST for Importing Goods Worth $1000 or Less

foxmulder on 20/06/2018 - 08:34
Last edited 21/06/2018 - 01:28 by 2 other users

See ATO "Tax and super news - quick and easy" email this morning on "Do you import goods worth A$1,000 or less?".

Especially this part:

You should not be charged GST if you:

are registered for GST
import the low value goods for business use in Australia, and
provide your ABN to the supplier and a statement that you are registered for GST.

If you're charged GST incorrectly you should contact the supplier to let them know that you're registered for GST, and request a refund.

The very least, ATO doesn't want the hassle of collecting GST to those businesses' as those GST is going to be claimed anyway in the next activity statement (if it was collected) - Similar I guess for eBay who doesn't charge GST on its monthly invoice for GST registered sellers.

Let me know what you guys think on this news? One question though, how exactly an overseas sender to enable this though from their end? I'm guessing in DHL shipment field there will be this GST or Non GST Registration info option?

Mod - feel free to merge this article to existing thread if you see fit.

• 

  TheOtherLeft on 20/06/2018 - 08:42

  +2

  As an individual, what's stopping me from claiming I have an ABN and quoting a fictitious number to an overseas seller so I can buy $900 worth of USB-C cables without having to pay GST? What's the chance of the overseas seller checking my fake ABN?

  • 

    Pikaloo on 20/06/2018 - 09:01

    +2

    Actually FedEX and DHL and whoever actually check and are diligent. They actually call up, do their checks. Ask for documentation via email and stuff.

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  antler on 20/06/2018 - 10:23

  +2

  You need to be registered for GST. Registering for ABN is easy, but rego for GST is a PITA to maintain. Not worth the trouble of BAS statements etc.

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  JimmyF on 20/06/2018 - 12:06

  +1

  You should not be charged GST if you: are registered for GST

  That would be correct. Any GST not collected on the import, will be collected on the final sale. The net outcome to the gov is the same.

  GST is a pass-through tax. So import $200 item, and you paid $18.18 GST on it. You get this as a GST credit when you sell that item.

  So sell it for $400, you would owe $36.36 in GST to the gov, but you already have a $18.18 GST input credit, so you really only owe $18.18.

  Now if you didn't get a GST input credit (as above for under $1000), you'll still owe $36.36.

  The gov doesn't miss out, but does make it a lot easier for everyone and less paperwork to the smaller sellers.

• 

  whooah1979 on 24/06/2018 - 09:32

  How does gst on lvt work for orders that are purchased today and enters Australia on July 1 or after? Is gst and duty charged based on the purchase date or is it on the date of entry?

  • 

    foxmulder on 10/07/2018 - 00:01

    I have item that come after 1 July, but was ordered before 30 June, and I see online, it has clear custom, thus, I guess this answer your question?

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  foxmulder on 10/07/2018 - 00:04

  Here is an online article that explain better on what's happening:

  Are you ready for the new Goods and Services Tax (GST) legislation on low-value goods imports?
  https://www.penguinaccounts.com.au/gst-low-value-imports-201…

  I guess for now, if you're small business to just supply your company name and ABN number (GST registered) to your supplier thus you won't get taxed on low value item. Maybe then that supplier enter this detail in shipment label creation.