FINAL REMINDER - effective 1 July 2018, overseas vendors (including merchants, electronic distribution platforms, and re-deliverers) that meet GST registration requirements will be required to charge and collect GST at the point of sale on eligible goods.  

Consumers in Australia may have to pay GST to vendors, on applicable goods with a customs value of AUD1,000 or less (low value goods) before importing them in to Australia.

There will be no changes to:

• the AUD1,000 threshold for reporting and collection of duties and taxes at the border;

• border clearance processes;

• the flow of goods across the border; and

• current import requirements for tobacco, tobacco products or alcoholic beverages regardless of value.

What you need to know

New fields in the Integrated Cargo System (ICS) have been created to allow the capture of additional information, where available:

Transporters and brokerage services should continue with their regular import processes. If the vendor has provided the above information, this should be entered into the ICS. However if it is not provided, there is no requirement to take extra steps to source this information. Only vendors that meet the GST registration requirements are required to charge and collect GST (see Simplified GST Registration).

Reporting requirements

Continue to enter and clear goods as you do now. In most circumstances, goods under AUD1,000 will be purchased and shipped as they currently do though self-assessed clearance declarations.

When should the GST-paid exemption code be used?

For low value goods that form part of a consignment with a customs value over AUD1,000, the GST-paid exemption code should be used to identify those items on which GST has been paid. For example:

A number of low value goods are purchased overseas and the vendor charges GST on each item. The goods are then sent in one consignment with a total customs value over AUD1,000.

In this scenario, the following applies:

• a Full Import Declaration is required for the importation of the goods as the customs value is over AUD1,000; and

• the GST-paid exemption code should be used on all tariff lines where GST has been paid to the vendor at the point of sale.

 
If the GST-paid exemption code is not used on import documents, and GST is charged again on the low value good at the border, refunds can only be sought from the vendor.

Further information

The Department of Home Affairs has published a series of Notices on this measure, including:

• 2018/13 – GST on low value imported goods

• 2018/14 – Use of the GST-paid exemption code

• 2018/15 – Claiming a GST refund.

Further information is also available from the Department of Home Affairs or the ATO.

Paul Zalai - FTA / APSA