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  • GST on low value imported goods – information for suppliers

    How are suppliers affected?

    You will need to register for and pay Australian GST if your GST turnover is A$75,000 or more in 12-month period. When determining if you meet the threshold, you will also need to include any of your other sales that GST applies to, such as services or digital products sold to Australian consumers.

    Broadly, your GST turnover is your gross consumer sales revenue from supplies made in the course of your business that are connected to Australia and to which GST applies.

    When you are registered for GST, you will also 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 are excluded for this 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%. This means the GST is 1/11th of the amount the consumer pays. GST is generally applied to all amounts paid by the consumer including transport and insurance.

    When do I pay GST on low value imported goods?

    Your sales can be subject to GST if, broadly:

    • you are registered or required to be registered for GST
    • your sales are low value goods supplied to consumers
    • you assist in getting the goods to Australia.

    Note: if you sell through an online platform, the operator of that platform may instead be required to account for GST on these sales. If so, these sales do not count towards your GST turnover threshold when determining if you need to register.

    If you refund a consumer on goods that are returned, you should refund any GST you collected on the goods. If you have done 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 you sell multiple goods with a combined customs value of more than A$1,000 which will be shipped together in one consignment to Australia. (These goods will instead have GST applied at the Australian border)
    • GST does not apply to the goods (known as GST-free or input taxed).

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

    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 55424