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16,317 views1 replies
1 replies
16,317 views
1 replies
Hi @Catherine7
It depends on whether you're supplying goods and a delivery service, or delivered goods.
The difference between delivered goods and goods and a delivery service is whether the delivery is integral for the client to enjoy the goods.
Basically it's if the client can receive the goods in other ways (such as collection at your office/warehouse) only by delivery.
If you only offer them through delivery service, they are delivered goods.
This means the shipping fee is taxable only as far as the goods themselves are.
This means if the goods are 100% GST-free, then you do not charge GST on the shipment, either.
It then depends on whether the shipment contains other items that are taxable supplies.
If there are taxable items in the shipment, you charge GST on the shipping according to the value of the goods.
We cover this on in further detail on GST Determination 2002/3 on our legal database, including examples to help work it out.
All replies
Hi @Catherine7
It depends on whether you're supplying goods and a delivery service, or delivered goods.
The difference between delivered goods and goods and a delivery service is whether the delivery is integral for the client to enjoy the goods.
Basically it's if the client can receive the goods in other ways (such as collection at your office/warehouse) only by delivery.
If you only offer them through delivery service, they are delivered goods.
This means the shipping fee is taxable only as far as the goods themselves are.
This means if the goods are 100% GST-free, then you do not charge GST on the shipment, either.
It then depends on whether the shipment contains other items that are taxable supplies.
If there are taxable items in the shipment, you charge GST on the shipping according to the value of the goods.
We cover this on in further detail on GST Determination 2002/3 on our legal database, including examples to help work it out.