I want to purchase Redmi AX6 router from Bangood as the XiaoMi official site redirects you to them: https://xiaomi-mi.com/wifi-routers/redmi-ax6-router/
My question is
- Is this company an Australian one that will provide me an Australian Tax Invoice with GST?
Then should you assume it was inclusive of GST for your own reporting?
1) Banggood is not an Australian based company.
2) Xiaomi-mi.com is not an official Xiaomi website.
3) The link to Banggood from Xiaomi-mi is just an affiliate referral link.
4) Why would you willingly buy a Chinese branded router and have your data pass through that.
BUT Banggood does collect GST on the sale!
No. It's a GST free sale.
Errr go back and look at your banggood receipt, clearly shows 'Goods and services tax' being collected.
@JimmyF: ok we need to break it down.
Ship From CN - Goods and Services Tax Paid
Ship From AU - No GST Paid
as for the forum post, the item is shipped from CN, so there will be a tax invoice with the 10% GST.
https://www.banggood.com/Xiaomi-Redmi-AX6-Router-4-Core-WiFi…
That is what they say, who is checking they are paying all of it to the ATO?
I'm sure the ATO is getting some payment to keep them happy. But how much? Well that is a good question.
No and no.
Not AU company. Ref: Hybroid above.
Banggood is probably regarded as "electronic distribution platform operator" for GST low-value import purposes, ie, collects GST on behalf of all sellers on the platform selling to AU customers. As such, issuing a tax invoice is not required: https://www.ato.gov.au/business/international-tax-for-busine…
Most buyers will not be GST registered and not claim a GST credit so would not need a tax invoice. If a buyer is GST registered and wants a tax invoice to claim a credit, the link should provide further info.
Just buy it from Aliexpress official Xiaomi store, should have a tax invoice.
ahh the usual whip up a bit of anti chinese right wing crap while billion dollar companies rake in millions from jobkeeper taxpayer funded liberal handouts to their mates…. banggood for them!
Anti-what now?
OP, they will issue an invoice.
Hi, I buy from Banggood sometimes for my business,
The invoice they email to you includes a GST amount,
On the last one it looks like this:
Subtotal: AU$819.66
Insurance: AU$16.40
Goods and Sevice Tax: AU$84.92
Shipping Fee: AU$31.92
Total Price: AU$934.09
Note that in this case , the shipping is GST-free , while the items delivered are GST-included.
There is a way of handling the mixed tax status in your accounting software, but most of us would just call the whole lot "with-GST"
There are a few vendors that will invoice on a "GST-free" basis, if you provide an ABN, e.g. Digikey(USA).
Others will bill you twice , once for the total amount, and again for 1/10th of that.
If you pay with Paypal, then many different things can happen, sometimes Paypal adds the GST.
Before doing my BAS, I print off a summary, and check invoices appear in the correct category.
Thanks for your reply. Does the invoice include things like ABN, company address? Those things normal AU tax invoice should include?
Overseas companies cannot have an ABN , and cannot supply "tax invoices".
Some overseas companies will include your ABN on the invoice (e.g. most US large companies) , I don't think any Chinese companies do.
You could always add "ABN 12345678" as your address line 2, if it bothers you.
If GST has been collected, it will show as "GST" on the overseas invoice ,that, and your(company) name the same as registered for GST are sufficient to claim a GST credit on your BAS.
Just be sure your GST registered name is your account name (or listed as address 2).
If you import goods via Fedex or UPS or DHL , and the addressee is "xyzcompany pty ltd" , and the commercial invoice doesn't show GST has been collected or exempted, may collect GST and bill you for it. They will look up your ABN from "xyzcompany pty ltd" , this generally doesn't happen below $1000.
FYI most merchandise shipped in/out of China goes through intermediaries in Hong Kong , so import/export at the Chinese end is then exempt from duties etc both ways, it then gets flown / usually trucked over the bridge to the mainland to avoid 30% tariff, and some other bizarre regulations.
In case you are interested , this is the accounting fudge that fixes the mixed GST freight.
Just import the transaction as usual into your accounting package, then add the two red lines.
Components purchased $934.09 GST
<span style="color:red">Freight -31.92 GST
Just checked my last order, which was from their AU warehouse. No GST mentioned.
Edit:
Supplier is:
BANGGOOD TECHNOLOGY CO., LIMITED Room 38, 11/F, Meeco Industrial Building 53-55 Au Pui Wan Street, Fotan, Shatin, N.T. Hong Kong