Status of GST on Low Value Imports (<$1000)

donbot on 18/12/2018 - 10:36

So I remember all the noise about GST on low value imports - and cant seem to clarify the exact position via ATO, searches or online material.

The way I understand it is:

  • The GST obligation of small value (<$1000 AUD) imports falls to the overseas supplier.
  • That overseas supplier should apply 10% GST to orders that will be imported to Australia
  • Australian Customs only applies GST to >$1000 imports at border entry, not for <$1000.

Is this correct? What if the overseas suppliers (such as a specialty equipment supplier) doesn't apply GST at the point of sale. Will it cause grief at point of entry into Australia or will it just fly through under the radar. Its camera gear - but tray/brackets/clamps

Surely someone here at Ozb has experience with this sort of thing in recent times?

Financial

Comments

  • penguincat on 18/12/2018 - 10:54
    +1

    I recently received a item which that a pre order from before the changes came in. The store did not ask/collect any GST when it shipped (item cost $160 AUD) and still don't for anyone that orders things from them today.
    The item arrived as per normal ATO/customs/delivery company never chased me for any payment.
    Unless the store is super popular with Australians they ATO wont chase them up as it likely wont be worth it.

    • mskeggs on 18/12/2018 - 12:15
      +4

      The store is only asked to collect GST if they sell more than $75k to Aussies.

  • Clear on 18/12/2018 - 13:24
    +3

    The GST obligation of small value (<$1000 AUD) imports falls to the overseas supplier.

    Correct ✔️

    That overseas supplier should apply 10% GST to orders that will be imported to Australia

    Correct ✔️

    Australian Customs only applies GST to >$1000 imports at border entry, not for <$1000.

    Correct ✔️

    It's really disappointing seeing all these people who say it's a customs enforced tax when it's not. Even more so when there are people in eBay deals saying it affects local sellers when it does not.

    If the overseas store has not charged you GST then you have nothing to worry about. It's up to the ATO to take action against the store and not you. I've made 50+ orders from overseas since the introduction of the law and it's had no impact whatsoever.

  • donbot on 18/12/2018 - 14:11

    Thanks guys. It confirms what I thought but couldn't find anywhere.

  • fl360 on 18/12/2018 - 14:48

    some ebay sellers are listing the item as in Australia, hence GST does not apply, however they are actually posting from overseas, (based on the time and the package). so some sellers are getting around that. Buyers do not really care so they save 10% .

    • whooah1979 on 18/12/2018 - 19:05

      Overseas sellers are listing the item location in Australia so that they don't have to remit the 2c GST. GSt on LVG is a waste of their time.

    • Clear on 18/12/2018 - 19:16

      I've said it a million times. Check their profile on the desktop site for their real location. It'll tell you what country the account was registered in.

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