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GST on Christmas Presents

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Newbie

Views 277

Replies 2

Hello,

My Brother lives in Indonesia and will be sending a watch to me (I live in Australia) as a Christmas present.

I have just spent 58 minutes on the telephone waiting for the ATO to answer to ask this question (I gave up!!):

Is GST payable on this present (I dont know how much the watch is worth - its a Christmas present!)

How does my Brother indicate its a Christmas present if GST is not payable?

If GST is payable who pays or how is it paid (It's a Christmas present!!)?  

I hope soemone can help me.

Many Thanks and Regards,

 

1 ACCEPTED SOLUTION

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ATO Certified

Community Support

Replies 1

Hi @BAM,

 

Sorry that you've had that experience with us!

 

Generally speaking, GST is only payable on goods that you purchase and import from overseas, as it is charged only at the point of sale for low value goods. If your family members live overseas and they purchase goods and then send them to you as a gift, then GST would not be applicable.

 

There isn't any requirement for the item to be declared as a gift from a taxation perspective, but you may need to speak to the Department of Home Affairs about customs requirements.

 

I hope this helps, but please let me know if you have any other questions.

 

Thanks,

 

Rachael B.

2 REPLIES 2
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Best answer

ATO Certified

Community Support

Replies 1

Hi @BAM,

 

Sorry that you've had that experience with us!

 

Generally speaking, GST is only payable on goods that you purchase and import from overseas, as it is charged only at the point of sale for low value goods. If your family members live overseas and they purchase goods and then send them to you as a gift, then GST would not be applicable.

 

There isn't any requirement for the item to be declared as a gift from a taxation perspective, but you may need to speak to the Department of Home Affairs about customs requirements.

 

I hope this helps, but please let me know if you have any other questions.

 

Thanks,

 

Rachael B.

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Newbie

Replies 0

Thank you Rachael for your informative response, very much appreciated.