Home – New Forums Money matters Starting Out Importing a Product to Sell – Tax & GST questions ??!!

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  • #995231
    aimeea
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    Hello all & what a great resource these forums have proved to be so far!

    I have designed a product which I have had made in China and will need to import a large quantity.

    I am at a loss when it comes to GST and tax. Do I register for GST even though I have not earned over 75k from this business as yet?

    Can I claim back the GST that I need to pay when I import the goods to Australia? I read somewhere you can defer this somehow to pay it later?

    Any advice would be appreciated!

    #1200750
    Corey
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    hi and welcome

    you best port of call for GST is the Australian Tax Office

    Cheers
    Corey

    #1200751
    Paul – FS Concierge
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    Hi And Welcome to the Forums. It is great to have you!

    Your best advice will come from an accountant.

    In the meantime, yoiu will not have to register for GST right away and GST is a tax you collect on sale of goods and services that you send back to the ATO so you do not pay GST when you import goods.

    #1200752
    bb1
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    Paul – FS Concierge, post: 237818, member: 78928 wrote:
    so you do not pay GST when you import goods.

    Paul, can you provide further details on this link

    https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/International-transactions/GST-and-imported-goods/

    #1200753
    Taxopia
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    Its generally the case with commercial importations that customs will levy GST as part of the clearance process unless you are registered under the deferred GST scheme. The biggest pain of this being switching to monthly activity statements and keeping them up to date. On a monthly basis the deferral is not exactly going to give you a big cash flow holiday. So fundamentally you need to be ready to pay GST on or shortly after the time of importation.

    #1200754
    Easysmb
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    HI There
    GST Registration: yes, you don’t have to register if under $75K.
    GST credit claim: if you want to claim GST credit, you have to register GST.
    GST defer: As Alex said, you will need to require to lodge monthly GST.
    GST defer benefit: if your business report GST based on cash basis, the benefit is that you do not pay ATO GST until you received the payment from your client. Our understanding is that if your deferred GST cashflow benefits out weigh the monthly compliance requirements, then it is beneficial to register GST defer.

    Good luck!

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