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How will GST on imported goods affect your Business?

From 1 July 2018, businesses that sell goods into Australia and meet the goods and services (GST) registration threshold of A$75,000 will need to register and pay GST on goods that are:

• less than A$1,000
• imported into Australia
• not GST-free items (for example, items of food).

This change also means Australian-based retailers that drop-ship goods will need to charge GST from 1 July 2018.

Businesses who buy low value imported goods should not be charged GST if they:

• are registered for GST
• import the low value goods for business use in Australia
• provide their Australian business number (ABN) to the supplier, along with a statement declaring they are registered for GST.

Businesses that are incorrectly charged GST should initially seek a refund from the supplier. In some situations, they may be entitled to claim a GST credit instead.

Remember, when claiming a GST credit, you should have a valid tax invoice. Only receipts which contain an ABN are valid tax invoices – even if they apply GST. Some overseas suppliers may be registered in the simplified GST system and have an Australian Taxation Office reference number (ARN) instead of an ABN.

The Money Edge | Bundaberg

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