Home Forums Logistics Would i need to charge GST on all B2C customers globally for dropshipping?

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  • #999854
    john5286
    Member
    • Total posts: 3

    There is a small paragraph on the ATO website (https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Who-charges-GST/#Domesticretailerswhousedropshipping) but it is very vague. Does anyone dropship here? Do you charge your B2C customers GST?

    #1221622
    JacquiPryor
    Member
    • Total posts: 2,344

    Hi John

    You may need to speak with your accountant for best advice on this question. My thoughts though (not an accountant):

    Firstly – are you registered for GST and/or need to be? If not, then this wouldn’t likely apply to my understanding.

    I found this article that seems to summarise nicely: https://lawpath.com.au/blog/importing-low-value-goods-will-new-gst-rules-affect

    #1221623
    john5286
    Member
    • Total posts: 3
    JacquiPryor, post: 267698, member: 20176 wrote:
    Hi John

    You may need to speak with your accountant for best advice on this question. My thoughts though (not an accountant):

    Firstly – are you registered for GST and/or need to be? If not, then this wouldn’t likely apply to my understanding.

    I found this article that seems to summarise nicely: https://lawpath.com.au/blog/importing-low-value-goods-will-new-gst-rules-affect
    Hi Jacqui,

    Thanks for this article, great find. Yes i am registered but the ATO website didn’t provide much information on it. Seems as though all dropshipping products must be GST inclusive.

    Customs clearance may be an issue for customers as they could be taxed twice. May have to speak to an accountant. Do you happen to recommended any firms which specialise in helping small business in Melbourne?

    #1221624
    Felicity Metcalf
    Member
    • Total posts: 9

    Hi John,

    I too am not an accountant. But my understanding is that if you are an Aus business selling to an Aus located customer then you must charge gst.
    If however you are an Aus business selling to an international (non Aus located) customer then you do not.
    You can also call the ATO for advice.

    good luck!

    #1221625
    IronMaiden
    Member
    • Total posts: 125

    I think Felicity Metcalf has it right. That was also my understanding. To make it simple, Aussies pay Aussie taxes, those outside of Australia don’t. However they may be charged taxes at their end by their own country.

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