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Nick95(Initiate)Initiate
24 Sept 2024

Hi, I am starting an online shop with products being shipped from myself or suppliers within Australia and also directly to customers from my overseas suppliers. For the items that are shipped directly to my customers from my overseas suppliers, the customer would be applicable for any customs charges.


In this instance should I charge GST directly to the customer at their time of purchase or allow customs to take on the responsiblity of the GST component? And if I should, is the customer then alliviated any further customs charges as the item arrives in Australia before being delivered to them?


And a small side note, do you need to be registered for GST to be able to charge for it and what happens if you collect it and don't end up reaching the thershold?


Thanks

1,383 views
5 replies
1,383 views
5 replies

Most helpful response

Most helpful reply

MelATO(Community Support)Community Support
25 Sept 2024

Hi @Nick95,


Firstly, to charge GST you must be registered for GST.


Once you’re registered for GST, you'll need to lodge a BAS either monthly or quarterly, to report the GST collected. You will need to pay any GST collected to us by the due date on the BAS.


Even if your income is less than $75,000 if you’re charging GST then you will still pay that to us.


Once your business turnover reaches $75,000 you must register for GST.


You should allow customs to take on the responsibility of the GST component.


The Department of Home Affairs collects GST on taxable importations. GST is payable before the goods are released by Home Affairs.

All replies

Most helpful reply

MelATO(Community Support)Community Support
25 Sept 2024

Hi @Nick95,


Firstly, to charge GST you must be registered for GST.


Once you’re registered for GST, you'll need to lodge a BAS either monthly or quarterly, to report the GST collected. You will need to pay any GST collected to us by the due date on the BAS.


Even if your income is less than $75,000 if you’re charging GST then you will still pay that to us.


Once your business turnover reaches $75,000 you must register for GST.


You should allow customs to take on the responsibility of the GST component.


The Department of Home Affairs collects GST on taxable importations. GST is payable before the goods are released by Home Affairs.

Nick95(Initiate)Initiate
26 Sept 2024

Hi Mel,


Thanks for the response and assistance.


So my take from this is I basically don't need to register and therefore collect any GST until I will be hitting the $75000 threshold. And I'm guessing this turnover amount would need to be per financal year?


And for the imports where I won't take delivery before sending to the customer I let customs take care of any further charges besides my original sale price and shipping costs charged as per my sale without any taxes (GST) included.


Thank you.

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