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Claiming back GST on goods purchased from AliExpress

Newbie

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I have a dropshipping business that buys goods on AliExpress (<$1000) and sells them directly to consumers in Australia. I am about to register for GST due (due to hitting $75k threshold). Once this happens, am I able to claim back the 10% GST that I pay on all my AliExpress orders via my activity statement?

 

AliExpress confirmed that they will continue to charge me GST on all my purchases, even after I provide them with my ABN and confirmation that I am registered for GST in Australia.  I could apply for a GST refund from AliExpress on individual purchases, but this is a lengthly process that would need to be repeated for EVERY order - just not feasible.

 

There must be others in the same position?

 

Thanks.

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Most helpful response

ATO Community Support

Replies 2

Hello @chiara_aus

 

As long as the purchase is for your business, then yes you can claim a GST credit in your activity statements Smiley Happy

 

You can find more information under: Claiming GST credits

 

Regards,

 

Tony

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hello @chiara_aus

 

As long as the purchase is for your business, then yes you can claim a GST credit in your activity statements Smiley Happy

 

You can find more information under: Claiming GST credits

 

Regards,

 

Tony

Newbie

Replies 1

Hi Tony, thanks for your reply.

 

I was confused because of some guidance on the ATO website (www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/International-transactions/Cla...), which states:

 

"You must be the importer of the goods to claim GST credits. You are the importer of the goods if both of the following apply:

  • you have caused the goods to be brought to Australia for your own purposes
  • you, or your agent, are named as the 'owner' of the goods on the import declaration."

 

I have no idea what AliExpress put on the documentation as the 'owner' of the goods.  So I can definitely still claim the input tax credits?  The purchases are solely for business use.

 

ATO Community Support

Replies 0

Hi @chiara_aus

 

Import declarations are completed by the person importing the goods. If this is you then this would be something you would complete for Customs.

 

Here is a link to the Australian Border Force website about Import declarations.

 

Hope this helps

 

Ari