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  • #986920
    SuzzyGal
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    I was just hoping to get a little GST hope. I am starting a new business and already registered for GST because I will be getting sale over the minimum threshold.

    All of my stock comes from overseas but I sell the products in Australia to other Australians.

    I understand I need to pay 10% GST back to the ATO. So for example $100 product = $9.09 GST. But because my stock has come from overseas I am not able to claim any GST credits back.

    So is it true that because basically I am an importer I’m going to end up paying a huge amount more GST back to the ATO then I will be able to claim back? Hence losing almost 10% of my income?

    #1160177
    JacquiPryor
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    Hi There,

    Yes you will pay more than you can claim that is true. But, you are not ‘losing income’. You should not view GST as a part of your income, as it’s never really your money.. you are basically just collecting it on behalf of the ATO.

    So, if your product is $100.00 – consider selling it if possible for $110.00 (so, it’s $100 + GST of $10).

    #1160178
    LucasArthur
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    Howdy

    Interesting perspective. As Jacqui says, you are not losing anything as it wasn’t yours to begin with. Allow me to take that further, it’s a cost of business and must be factored!

    Also , as you say you are not paying GST on items does this mean you only import small quantities and thus not required to declare? Personally, we pay GST even though suppliers are foreign and do not charge us.

    Another point, do you not have any ‘overheads’ that can assist you in offsetting some of the GST? Or is the operation quite lean?

    Sounds like a great opportunity though, if paying GST is a concern. When I get a GST bill I generally know we are doing ok as we have sold more than bought (most times)

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1160179
    Simply Money Honey
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    Hi

    Are you sure you are not paying GST on the goods? GST is payable on most imported goods unless you are importing goods worth less than $1,000 or the goods are subject to a GST exemption (rare).

    If your stock is valued at more than $1,000 your foreign supplier will not charge you GST but GST is charged when the goods are imported to Australia.

    Have a look at the ATO website and the customs website for more information.

    Cheers

    Gabrielle

    #1160180
    SuzzyGal
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    Simply Money Honey, post: 184932 wrote:
    Hi

    Are you sure you are not paying GST on the goods? GST is payable on most imported goods unless you are importing goods worth less than $1,000 or the goods are subject to a GST exemption (rare).

    If your stock is valued at more than $1,000 your foreign supplier will not charge you GST but GST is charged when the goods are imported to Australia.

    Have a look at the ATO website and the customs website for more information.

    Cheers

    Gabrielle
    Hi. I just keep stock orders at below $1000 so I don’t need to worry about all the import fees. Even if we order over $1000, we are still worth. The GST payable/claimed cancels itself out, but then we have the duty fees etc also.

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