Home Forums Money matters Gdt on imported goods

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  • #1000320
    boots72
    Member
    • Total posts: 14

    Hi
    Ive setup a little sole trader business – turnover expected to be below gst $75 threshold.
    On some goods I’ve imported I’ve been charged gst.

    am i able to get an exemption and get that amount back from ABF (aust border force) or is that not possible

    cheers

    #1223871
    Dash Freight
    Participant
    • Total posts: 91

    Hi Boots72. The short answer is no. As I understand it, you can still register for GST even if your turnover is under $75K. Because you are importing, I would suggest you give it serious consideration. I have a lot of importers in your situation and they are registered.

    Rob Dash E: rob@dashfreight.com.au M: 61 423 136 053 Quotes: https://tinyurl.com/yae7tbj6 S: live:rd2221
    #1223872
    boots72
    Member
    • Total posts: 14

    Cheers
    Yes i have registered for gst
    So no unlikely to get exemption… price of doing business i guess…

    When u say give it serious consideration- what do you mean exac…. better to be registered and covered incase exceed $75k….
    Cheers

    #1223873
    Raestorm
    Member
    • Total posts: 6

    Hi boots72,

    If you are registered for GST then you can claim the GST credit on your BAS (but can’t get an exemption, or claim it back from ABF at the time of import). You can apply for a GST deferral on imports but would have to lodge your BAS monthly – this is more appropriate for larger operations where it can benefit cash flow.

    Rob’s reply above would have been under the assumption that you hadn’t registered for GST – if your turnover is under 75k there is no obligation to register.

    Best seek proper financial advice on the pro and cons of registering for GST if under 75k. If you are registered then yes, you can claim a credit on the GST on your imports but you are also then required to collect GST from your customers / sales.

    #1223874
    bb1
    Participant
    • Total posts: 4,472
    robdash, post: 270581, member: 117305 wrote:
    Hi Boots72. The short answer is no. As I understand it, you can still register for GST even if your turnover is under $75K. Because you are importing, I would suggest you give it serious consideration. I have a lot of importers in your situation and they are registered.

    Please, seek professional accounting advise, just because other importers are doing it, doesnt mean it is suitable for [USER=118255]@boots72[/USER], every business’s circumstances are different.

    #1223875
    Dash Freight
    Participant
    • Total posts: 91
    boots72, post: 270582, member: 118255 wrote:
    Cheers
    Yes i have registered for gst
    So no unlikely to get exemption… price of doing business i guess…

    When u say give it serious consideration- what do you mean exac…. better to be registered and covered incase exceed $75k….
    Cheers

    Hi Boots
    sound advice from Raestorm and BB1. Talk to your accountant.

    If you are registered for GST, there may be a cashflow issue, but ultimately not a direct cost, because you claim the GST credit on your BAS.
    If you are not registered for GST then the GST on imports becomes a cost.

    Raestorm is also right about deferral. You can claim a deferral of GST under certain conditions (such as monthly BAS reporting)
    Check it out here
    https://www.ato.gov.au/business/gst/in-detail/rules-for-specific-transactions/international-transactions/deferred-gst/

    Regardless of your GST status, in most cases you probably need to keep your commercial documents for 5 years after the import. This includes the Customs Entry, i.e. the formal calculation sheet which is provided to you when invoiced for duty and taxes.

    Rob Dash E: rob@dashfreight.com.au M: 61 423 136 053 Quotes: https://tinyurl.com/yae7tbj6 S: live:rd2221
    #1223876
    boots72
    Member
    • Total posts: 14
    Raestorm, post: 270585, member: 102984 wrote:
    Hi boots72,

    If you are registered for GST then you can claim the GST credit on your BAS (but can’t get an exemption, or claim it back from ABF at the time of import). You can apply for a GST deferral on imports but would have to lodge your BAS monthly – this is more appropriate for larger operations where it can benefit cash flow.

    Rob’s reply above would have been under the assumption that you hadn’t registered for GST – if your turnover is under 75k there is no obligation to register.

    Best seek proper financial advice on the pro and cons of registering for GST if under 75k. If you are registered then yes, you can claim a credit on the GST on your imports but you are also then required to collect GST from your customers / sales.
    If I’m earing under 75k and claim a credit on the gst – how can I collect gst from customers? I thought that precludes me – I would not be allowed to collect gst from customers…

    #1223877
    bb1
    Participant
    • Total posts: 4,472
    boots72, post: 270615, member: 118255 wrote:
    If I’m earing under 75k and claim a credit on the gst – how can I collect gst from customers? I thought that precludes me – I would not be allowed to collect gst from customers…

    Go see your accountant. Above you said you are registered for GST, in which case you must collect GST on your sales.

    #1223878
    boots72
    Member
    • Total posts: 14

    Gday mate
    I’ve already spoken to my accountant
    Being registered for gst doesn’t mean i have to collect gst off my customers.
    I merely am interested on an expansion of Raestorms comment saying as much

    #1223879
    Jason Ramage
    Participant
    • Total posts: 3,160
    boots72, post: 270620, member: 118255 wrote:
    Gday mate
    I’ve already spoken to my accountant
    Being registered for gst doesn’t mean i have to collect gst off my customers.
    I merely am interested on an expansion of Raestorms comment saying as much

    Oh, i thought being registered for GST meant you were collecting GST? I know you can have an ABN and not be required to collect GST, although the moment you tell the ATO you are registering for GST i thought you were compelled to follow the ATO rulings on GST?

    I better check this with my accountant, wasnt aware it was an option…

    Are you sure your accountant isnt mixing up ABN registration with GST registration? Just logically, if you were not collecting GST, why would you register for it?

    Look forward to an update

    Jason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au   P: 61 3 8324 0344    M: 61 412 244 888
    #1223880
    bb1
    Participant
    • Total posts: 4,472
    LucasArthur, post: 270621, member: 34537 wrote:
    Oh, i thought being registered for GST meant you were collecting GST? I know you can have an ABN and not be required to collect GST, although the moment you tell the ATO you are registering for GST i thought you were compelled to follow the ATO rulings on GST?

    Thats my understanding as well Arthur, I think we both need to get new accountants.

    #1223881
    boots72
    Member
    • Total posts: 14

    gday gents – I’ll double check with my accountant. As my little business is unlikely to hit anywhere near $75k PA not hitting gst. However setting up an ebay online sales platform – they would charge me GST. But I can get exemption from ebay gst charges If I have registered for GST (does that make sense) I’ll double check

    #1223882
    bb1
    Participant
    • Total posts: 4,472
    boots72, post: 270628, member: 118255 wrote:
    gday gents – I’ll double check with my accountant. As my little business is unlikely to hit anywhere near $75k PA not hitting gst. However setting up an ebay online sales platform – they would charge me GST. But I can get exemption from ebay gst charges If I have registered for GST (does that make sense) I’ll double check

    I’m confused, as I think you may be, you are either registered or not registered for GST.

    • If you are registered for GST you collect GST from your clients (unless exempt product or service), whether you are bringing in $75K or not.
    • If you are not registered for GST you don’t collect GST from your client.
    #1223883
    Jason Ramage
    Participant
    • Total posts: 3,160
    bb1, post: 270631, member: 53375 wrote:
    I’m confused, as I think you may be, you are either registered or not registered for GST.

    • If you are registered for GST you collect GST from your clients (unless exempt product or service), whether you are bringing in $75K or not.
    • If you are not registered for GST you don’t collect GST from your client.

    If one wants to check if registered to collect/claim GST, one only needs to go to: https://abr.business.gov.au/ and enter their ABN and it will advise if registered or not..

    Jason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au   P: 61 3 8324 0344    M: 61 412 244 888
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