Home – New Forums Logistics GST and Non-Taxed Imports

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  • #969668
    deftouch85
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    I am importing collectible items from the USA in lots that are slightly under the tax-free threshold of AUD$1,000.

    I intend on starting out by test-selling these items at a local market.

    I have a couple of questions (please :] ):

    1. Will I have to register as a business to sell at local markets?

    2. According to the ATO, I only need to register for GST “if your GST turnover is at, or above the GST turnover threshold, that is, it is $75,000 or more”. Does this mean that I only register once revenue for the financial year exceeds $75,000? Would I have to pay GST on any pre-registration revenue once I have registered?

    3. In my case I am not paying GST on my imports due to the items being exempt (<$1,000). Therefore I cannot claim any GST credits on my purchases, correct?

    #1039925
    bylife
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    deftouch85, post: 48397 wrote:
    I am importing collectible items from the USA in lots that are slightly under the tax-free threshold of AUD$1,000.

    I intend on starting out by test-selling these items at a local market.

    I have a couple of questions (please :] ):

    1. Will I have to register as a business to sell at local markets?

    2. According to the ATO, I only need to register for GST “if your GST turnover is at, or above the GST turnover threshold, that is, it is $75,000 or more”. Does this mean that I only register once revenue for the financial year exceeds $75,000? Would I have to pay GST on any pre-registration revenue once I have registered?

    3. In my case I am not paying GST on my imports due to the items being exempt (<$1,000). Therefore I cannot claim any GST credits on my purchases, correct? 1. You need ABN to start business (selling activity).
    2. Best way to contact ATO to ask, they will give you clear answer. If your turnover more than 75000, you have to register GST, and quarterly report BAS statment (same ask AT0)
    3. For this, IMO, after you registered GST, the part of GST you have paid to ATO you may make claim except the GST to US.

    #1039926
    Tim Davies
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    deftouch85, post: 48397 wrote:
    I am importing collectible items from the USA in lots that are slightly under the tax-free threshold of AUD$1,000.

    I intend on starting out by test-selling these items at a local market.

    I have a couple of questions (please :] ):

    1. Will I have to register as a business to sell at local markets?

    2. According to the ATO, I only need to register for GST “if your GST turnover is at, or above the GST turnover threshold, that is, it is $75,000 or more”. Does this mean that I only register once revenue for the financial year exceeds $75,000? Would I have to pay GST on any pre-registration revenue once I have registered?

    3. In my case I am not paying GST on my imports due to the items being exempt (<$1,000). Therefore I cannot claim any GST credits on my purchases, correct? My take on this is: 1. yes you have to register if you plan for it to be more than a hobby (very low income threshold)
    2. if you havent collected GST you wouldnt have to pay it, however, you’d want to talk to an accountant before you report your earnings/sales for 100% confidence
    3. You can only claim GST which you’ve paid. So no, i dont believe there’s anything there to be claimed if you havent paid GST.

    Fundamentally it sounds like you need to sit down with someone and work out just what your actually starting here. You identified 75k as the GST threshold. If you think within the next year or two, you’ll pass this, its probably worth registering now. If you dont, it may not be worth registering at all. Cant stress it enough, it just sounds like you need to sit down with a qualified person and talk through the options for the type of business you ‘WANT TO CREATE’. Not the ‘business’ you have now. Sturcture it in a way thats suits what you see the business becoming in the short to medium term to avoid more growing pains which dont need to be there.

    Good luck.

    #1039927
    StellarScott
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    Hi defttouch

    If you are running a business,as distinct from a hobby, you need to have an ABN

    I would assume that as your importing for sale the ATO would treat it as a business regardless of where sales take place

    You must register for GST if your projected turnover for the current month and the next twelve months is expected to be $75000 or more

    Once your registered you show the words tax invoice and GST inclusive on your invoices / receipts

    If your not registered you cant claim for any GST paid

    Do agree with Tims point about having a plan and a structure and happy to answer any questions on this from an accountants perspective

    #1039928
    SewSpunky
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    Keep in mind also insurance. If you are importing you essentially become the manufacturer from a liability perspective.

    #1039929
    Spiffy Brian
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    deftouch85, post: 48397 wrote:
    3. In my case I am not paying GST on my imports due to the items being exempt (<$1,000). Therefore I cannot claim any GST credits on my purchases, correct? If you are importing goods, then GST will never be payable on those items, no matter how much they cost. GST is only payable on goods and services purchased from Australian businesses. You will only be able to claim GST back on expenses that you have paid to local companies, such as postage, rental for your market stall, etc.
    #1039930
    yourvirtualboard
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    Brian, before customs release goods GST has to be paid (unless low value items as discussed).

    #1039931
    Tim Davies
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    yourvirtualboard, post: 48514 wrote:
    Brian, before customs release goods GST has to be paid (unless low value items as discussed).

    Good advise Harry. Spot on.

    #1039932
    Spiffy Brian
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    yourvirtualboard, post: 48514 wrote:
    Brian, before customs release goods GST has to be paid (unless low value items as discussed).

    Sorry for the misleading info. I was just thinking about our situation, which is all non-imported services for which we don’t pay any GST.

    Brian

    #1039933
    deftouch85
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    • Total posts: 2
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    Just wanted to say thanks for all the replies – you have definitely helped point me in the right direction :)

    #1039934
    chris_king435
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    Technically i don’t think you need an abn, however your customers are allowed to withold 46.5% (or something stupid like that) for tax purposes :).. Considering it’s free and easy. I would definitely do it.

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