Do you import goods worth A$1,000 or less?
Australian Tax Law – Goods & Services Tax
From 1 July 2018 overseas businesses that meet the GST registration threshold of $75,000 (Australian dollars) must have commenced charging GST on goods that are:
- less than A$1,000 (low value),
- imported into Australia, and
- not GST-free (such as most basic food, alcohol, tobacco, or tobacco products).
How will this affect you?
You will be charged GST on low value goods that you import if you are:
- not registered for GST, or
- are GST registered but importing goods for personal use.
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.
Note that not all receipts that have GST applied will be tax invoices. They will need to contain an ABN to be considered a tax invoice. Overseas suppliers may be registered in the simplified GST system and have an ARN instead of an ABN.
Chieftains is an accounting firm that exists to help business owners increase profits and reduce risks allowing them to astutely provide for their retirement.
BUSINESS SOLUTIONS | SELF-MANAGED SUPER FUNDS | INVESTMENT PROPERTIES | BUSINESS VALUATIONS
This article is for guidance only, and professional advice should be obtained before acting on any of its contents. Neither the publisher nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication. Liability limited by a scheme approved under Professional Standards Legislation.