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  • GST on low value imported goods – information for re-deliverers

    Who is a re-deliverer?

    You are a re-deliverer if you assist in getting the goods to Australia by providing either:

    • an offshore mailbox service, where you provide or assist in providing the use of an address outside Australia to which goods are delivered
    • a shopping service, where you purchase or assist in purchasing goods outside Australia as the agent of a recipient.

    However, if a supplier or an electronic distribution platform operator also assists in getting the goods to Australia, they will be responsible for GST instead of you.

    Who is not a re-deliverer?

    Transporters are usually not re-deliverers, as they are typically engaged by the supplier or platform operator and do not provide offshore mailboxes or shopping services. If you buy and resell goods, you are a supplier rather than a re-deliverer.

    How are re-deliverers affected?

    If you are a re-deliverer that is responsible for GST on low value goods sold to consumers in Australia, you will need to count these sales towards your GST turnover. If the value of sales of low value goods to consumers that you help get to Australia (including your service charges which are subject to GST and any other sales you make that GST applies to) is A$75,000 or more in a 12-month period, you need to register for GST.

    When you are registered for GST, you will need to ensure that certain information is provided to customers and included on customs documents.

    What are low value goods?

    Low value goods are physical goods (excluding tobacco products or alcoholic beverages) valued at A$1,000 or less. This A$1,000 threshold is based on the customs value, which means transport and insurance costs (except for inland freight to get the goods to the place they are exported) are excluded from the valuation. Goods imported into Australia in a consignment valued at over A$1,000 (and all tobacco products or alcoholic beverages) will continue to have GST and customs duties applied at the border (as per existing rules).

    How much GST do you charge?

    The Australian GST rate is 10%. Special rules apply for re-deliverers. The GST you charge is:

    • 10% of the amount paid by the customer for the goods, plus
    • 1/11th of the amount the customer pays for your services to get the goods to Australia, including international transport and insurance.

    When do I pay GST on low value goods?

    As a re-deliverer, you will need to charge GST if, broadly:

    • you are registered or required to be registered for GST
    • the goods are low value goods sold to consumers
    • you assist in getting the goods to Australia (and the supplier or an electronic distribution platform operator do not assist in getting the goods to Australia).

    If a consumer is refunded on goods that are returned, you should refund any GST you collected on the goods. If you do this and you have already paid the GST to the ATO, you can reduce the GST payable in your next GST return.

    Are there any exceptions?

    You won’t charge GST on low value imported goods under the new law if:

    • your customer is a business who provides you their Australian business number (ABN) and states that they are GST registered
    • you apply an exception because multiple goods with a combined customs value of more than A$1,000 will be shipped together in one consignment to Australia
    • GST does not apply to the goods (known as GST-free or input taxed supplies).

    Even if you don’t charge GST because of one of these exceptions, you are still required to include certain information on customs documents.

    How to register for GST

    You can choose to register using the simplified GST system designed for non-residents, if you are eligible, or the existing standard GST registration system.

    More information

    Further guidance on GST on low value imported goods and GST registration is available at ato.gov.au/AusGST, or you can email us at AustraliaGST@ato.gov.auThis link opens in a new window.

      Last modified: 14 May 2018QC 55423