31/5/2018

To our Valued Customers,

Please be reminded that low value goods (consignments with a FOB value below $ 1,000 AUD) shipped by overseas suppliers to Australian consumers will become subject to GST, effective from July 1st.  Under this change, the vendor collection model will be used to collect GST in Australia, whereby vendors (including merchants, electronic distribution platform operators and re-deliverers) will collect the GST on low value imported goods at the time of sale. Furthermore, vendors with a GST turnover/sale of $75,000 or more per annum must register with the Australian Taxation Office (ATO) to enable them to remit collected GST to the ATO.

 

Where vendors have a GST turnover below $75,000 per year they are not required to register with the ATO. Under these circumstances GST will be collected upon arrival at the Australian border. 

For vendors to ensure compliance and avoid ‘double taxation’ (i.e. when GST is charged at point of sale and again at the border), they will need to ensure that relevant tax information is included on all relevant customs import documentation for low value goods.  Such information will include the vendor’s GST registration number (i.e. Australian Business Number [ABN] or ATO Reference Number [ARN] ), the recipient’s ABN, and the nature of the goods supplied). Additionally, should the goods value include GST, commercial invoices should include the GST amount in the price paid, or to be paid. Vendors may be subject to penalties where they fail to meet documentation requirements.

Should ‘double taxation’ occur, customs brokers will be unable to lodge a refund application. Such refunds must be sought from the supplier directly. This will make clear, correct documentation an essential requirement.

Should you have any further queries or concerns please make contact with your BR International Customs department.

Keeping you updated,

BRi Customs Team

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