Home – New Forums Logistics do I have to pay GST on these international sales

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  • #979478
    m_kramar
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    I’m going to start a business where online customers will order custom manufactured parts. They will pay into my account, the order will be assigned to other manufacturers who will build it and ship it. I will keep about 10% of the order and pay the rest to manufacturers.

    Some orders will come from Australia, but most will come from overseas.

    Some manufacturers will be located in Australia but most will be located overseas.

    On which orders do I have to pay GST?

    #1114554
    Go Virtual Office Support
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    Hi

    The Australian suppliers should give you a tax invoice, and if they are registered for GST will charge you GST.

    The Overseas suppliers will not charge you GST. HOWEVER, customs may charge you GST when the goods go through customs.

    Hope that helps.

    #1114555
    StellarScott
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    Hi M

    Exports are ultimately GST free. If you are the seller of the goods to the overseas client there is no GST collectible but, if you are registered, you will be able to claim GST credits from the manufacturers

    The situation is likely to be different if you are merely an agent of the manufacturers and they are invoicing the end customer

    #1114556
    inkable
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    If these will be imported into Australia then they will be subject to GST, customs clearance fees and duty. However all shipments under $1000 AUD are exempt from GST, customs clearance and duty. Keep in mind thought that the $1000 AUD threshold is for the total cost of goods include freight costs.

    You can find more information here along with a detailed example:

    http://www.ato.gov.au/businesses/PrintFriendly.aspx?ms=businesses&doc=/content/13193.htm

    #1114557
    JacquiPryor
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    To add to the previous comments – you’ll only collect & pay GST if you/your business is registered for GST. If you’re not registered then you don’t charge any GST to any customer.

    Obviously the freight/customs/importing costs need consideration (but even then it sounds like shipping will go straight from manufacturer to customer so you may not have to first bring it into Australia etc) – Ultimately you won’t ‘collect’ GST on the actual international sale (i.e. you won’t charge an overseas customer GST). You would charge Australians GST on the actual sale if you are registered; and, you will pay it to Australian manufacturers if they are registered and as Go Virtual Office Support said – they should provide you with a Tax Invoice that will clearly show that they are registered and charging GST.

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