GST COLLECTION ON LOW VALUE GOODS

20/3/2018

To Our Valued Customer,

From July 1st this year, low value goods ( consignments with an FOB value below $ 1,000 AUD ) shipped by overseas suppliers to Australian consumers will become subject to GST.  Under this change, the vendor collection model will be used to collect GST in Australia, whereby vendors ( including merchants, electronic distribution platform operators and re-deliverers ) will collect the GST on low value imported goods at the time of sale. Furthermore, vendors with a GST turnover/sales of $75,000 or more must register with the Australian Taxation Office ( ATO ) to enable them to remit collected GST to the ATO.

Where vendors have a GST turnover below $75,000 per year they are not required to register with the ATO. Under these circumstances GST will be collected from the importer at the time of arrival.

For vendors to ensure compliance, and avoid ‘double taxation’ ( ie. when GST is charged at point of sale and again at the border ),  they will need to ensure that relevant tax information is included on all relevant customs import documentation for low value goods.  Such information will include the vendor’s GST registration number ( ie Australian Business Number [ABN] or ATO Reference Number [ARN], the recipient’s ABN, and the nature of the goods supplied ). Additionally, should the goods value include GST, commercial invoices should include the GST amount in the price paid, or to be paid. Vendors may be subject to penalties where they fail to meet documentation requirements.

Should ‘double taxation’ occur, customs brokers will be unable to lodge a refund application. Such refunds must be sought from the supplier directly. This will make clear, correct documentation an essential requirement.

BR International will keep you updated of any developments in relation to GST collection on low value goods.  Should you have any further queries or concerns please make contact with your BR International Customs department.

Keeping you updated, BRi Customs Team

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