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Re: GST for overseas trading

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Newbie

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Our business would like to start a new operation as "Internatinoal trading", however got some GST issue. As an Autralian company, we are planning to source product in China to Malaysia. We received order and payments from Malaysia company, and engage China factory to manufacture those products and directly ship to Malaysia. Payments will make to China factory straight away. And the expected yearly turnover is around AUD $500,000. Do I need to pay any GST on my sales in this case?

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ATO Certified

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Hi @Jeanhuang,

 

Thanks for your question!

 

If you do not import or export any goods and you do not have any Australian customers, then you may find that your sales are not taxable, as they are not connected with Australia. If the items are being sold overseas, then they will generally be GST free.

 

When you work out your GST turnover from sales, you will only include sales that are connected with Australia, so if none of your sales are connected with Australia, then you may not be required to register for GST.

 

You should have a look at our page on exports and GST, and you may also wish to email us for additional guidance.

 

Hope this helps,

 

Rachael B.

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @Jeanhuang,

 

Thanks for your question!

 

If you do not import or export any goods and you do not have any Australian customers, then you may find that your sales are not taxable, as they are not connected with Australia. If the items are being sold overseas, then they will generally be GST free.

 

When you work out your GST turnover from sales, you will only include sales that are connected with Australia, so if none of your sales are connected with Australia, then you may not be required to register for GST.

 

You should have a look at our page on exports and GST, and you may also wish to email us for additional guidance.

 

Hope this helps,

 

Rachael B.