NEWS GST on low value imported goods

​ From 1 July 2018, goods with a customs value of AUD1000 or less purchased from overseas by consumers in Australia may attract goods and services tax (GST).

From 1 July 2018, overseas vendors (including merchants, electronic distribution platforms, and re-deliverers) that meet the GST registration requirements will be required to charge and collect GST at the point of sale on eligible goods.

Consumers in Australia may have to pay GST to vendors, on applicable goods with a customs value of AUD1000 or less (low value goods) before importing them in to Australia.

There will be no changes to:

  • the AUD1000 threshold for reporting and collection of duties and taxes at the border
  • border clearance processes
  • the flow of goods across the border
  • current import requirements for tobacco, tobacco products or alcoholic beverages regardless of value.

Transporters and brokerage services should continue to enter and clear goods as they do now. In most circumstances, goods under AUD1000 will be purchased and shipped in line with current process through self-assessed clearance declarations.

New fields in the Integrated Cargo System (ICS) have been created to allow the capture of additional information, where available:

Field Information to be provided
Vendor ID
  • The vendor's ATO reference number (ARN) or Australian business number (ABN).
Importer ID
  • The importer's ABN for use when GST registered businesses import goods for business use in Australia.
  • Low value goods imported for personal use do not require an Importer ID.
GST exemption code
  • A GST exemption code of 'PAID' can be used to identify when GST has been paid on an item at the point of sale to prevent double taxation at the border (available on import documents with tariff lines).
  • Goods imported in a consignment of AUD1000 or less will not require the use of the GST-paid exemption code.

If the vendor has provided the above information, this should be entered into the ICS. However if it is not provided, there is no requirement to take extra steps to source this information. Only vendors that meet the GST registration requirements are required to charge and collect GST.

For further information see GST on low value imported goods.

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