Applying GST to low value imported goods

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.

Your clients 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.

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