How is Australian GST calculated and charged?

How is Australian GST calculated and charged?

The Australian Government introduced new laws that came into effect on 1 July 2018 that require what they call redeliverers to collect Goods and Services Tax (GST) on low value goods imported to Australia. This means we are obliged to collect GST on goods with a value of AUD $1000 or less.  The GST we collect is paid to the Australian Tax Office (ATO).  

Goods with a value greater than AUD $1000 will be taxed at the border by Australian Customs as they have always been in the past. In this instance we do not collect any GST on the value of the goods.  

How is GST calculated?

GST is calculated as 10% of the value of the goods plus any shipping or service charges.  GST must be collected on the shipping cost from the retailer to us and the international shipping cost from forward2me to Australia.  The GST will be added to your shipping invoice.

Why must we ask you for your purchase invoices?

We are required by the ATO to collect copies of the original purchase invoices or receipts for your goods so that we can prove that we charged you the right amount of GST. We ask you to upload scans of your invoices as soon as you have them. It typically takes one business day for us to process the invoices and only then can we accept your instructions ship, take payment and dispatch the goods. 

Why are there fewer couriers to choose from when shipping to Australia?

To begin with only DHL's systems were fully compliant with the new requirements.  We are working with our other couriers and will bring them back online as soon as we can.

Are Australian GST registered businesses exempt from the GST charge?

Customers who provide us with a valid Australian Business Number (ABN) and state that they are registered for GST will not be charged GST.  However at this time we are still implementing the functionality in our system to allow for this.  It is coming soon, but until then we ask you to claim back the GST charge on your GST return.

Australian External Territories

Christmas Island, the Cocos (Keeling) Islands and Norfolk Island are Australian external territories and they are not considered part of Australia for GST purposes.

Learn more.

The Australian Tax Office have further information on their website about the new rules affecting GST on low value imported goods.