GST and imported parts

[byroncobra]

What's your experience with the application of GST to your imported parts orders?

Is it religiously applied at $1000 and does it apply to the whole invoice amount or only every $ over 1000?

Does it apply to the freight charges as well?

My previous orders were less than $1000 so didn't attract the tax.

I'm just wondering if splitting an order to keep around this threshold may save a few hundred bucks

[xb-60]

The value of the import includes shipping charges, and if the total goes over AUD1000, you pay GST on the full amount. I had a package with value incl. shipping of AUD1100 and had to pay GSTof AUD110.
If you split into two shipments, your total shipping cost most likely will be more than the GST that you want to avoid.
If it's coming from the US, you're on a winner with the exchange rate anyway....
Cheers,
Glen

[Krait]

Greg,

If you're buying from the US don't forget the Free Trade Agreement. I have the docs if you need them.

Cheers

[xb-60]

What does the Free Trade Agreement say?

[Zedn]

GST and imported goods

I always thought the shipping was not included, but XB-60 is correct it includes shipping.

[byroncobra]

Ok thanks

With an order of $2500 = $250 GST then maybe if I split it and pay extra $80 in postage, I was thinking I might be ahead $170 bucks.....I thought that the tax man may let through goods a little over the $1000. Maybe not!

[Modena]

shipping used to be excluded from the $1000 calculation, I think it changed a year or so ago.

[sideshow]

dont know if its going to be just 250 bucks for 2500 bucks
it changes depending on parts
car parts have one %
maybe presents have another
furniture might have another

4 months ago i bought some of those 58x reluctor boxes for the ls2 to ls1 engines
prices was 1600 roughly
i paid 300 in duty

it was 150 in gst
then some other crap i would have to dig up the invoice to see
im not sure because i bought alot of the same parts to onsell i get charged more
but find someone who imports parts regularly and they might be able to advise u
guys where my shop is at moment know how all the tariffs work and depending if its used part or for racing or for resale will depend on the extra charge ontop of the gst

[xb-60]

That's interesting. Sideshow, can you look it up and report back what the extra was? Should only be GST of 10%. All other taxes for 'goods' were supposedly wiped out with into of GST. If you bring in a complete car, that's different - you pay both GST and import duty on the car.
Cheers,
Glen

[sideshow]

it might be different depending on if its for busioness use or personal too
cause i bring it in invoiced to my company name maybe they shaft u extra aswell
im hoping to stop selling any more parts after the next few months
just dont really want to keep to much stock and also sick of each time i sell something some learns my tricks of how to cure a problem so i will only use the parts i have and buy on the job i work on and nothing else
just going to tighten down and be harsh once i relocate

[sideshow]

sorry since im a crap accountant i dont have paper work explaining what was what
but the parts came to 1644 aussie dollars
and i paid customs 308 dollars
so id say 150 is was gst
and the rest i think was customs charges
i vaguely remember they charge 45 or so dollars handling fee i think and some other stuff which id say would equal up to the other 150 ish dollars
u need to talk to someone who does this all the time
guys where my shop is now are japanese engine importers and they know most off this stuff

[400TT]

Yes, only GST payable(goods value + freight) on USA manufactured goods if you submit the Free Trade Agreement forms etc. If not USA manufactured you will also have to pay the applicable duty rate.

You will also need to pay any brokerage fees for customs clearance if you don't do it yourself. Customs application lodgement fee itself is payble if you DIY.

And depends on the freight company and freight type you can pay some destination charges.

No GST or Duty payable if goods value is less than AU$1000.

No difference if business or personal.

Even if the goods come in via post(e.g. USPS) and the goods value is over AU$1000, then you still need to customs clearance and pay any applicable GST and duty.

You can be asked to provide proof of the purchase price - e.g. credit card invoice, bank records etc.

You can break up the shipment into smaller shipments to get under the AU$1000 goods value limit, but they cannot be sent on the same ship etc or basically arrive at the same time. If they do, they will be consolidated again anyway.

Hope that helps.

[byroncobra]

Thanks for that fellas

Jim, as you note the extra charges must be customs fees and duties as the info from the tax office notes that only the 10% GST is applied by them:

How do you pay GST on imports?

The Australian Customs Service (Customs) collects GST on taxable goods imported into Australia. The GST payable is 10% of the value of the imported product. The value of the product is the sum of:

the customs value of the goods

any customs duty payable

the amount paid or payable to transport the goods to the port or airport of final destination in Australia (or the place in Australia to which goods are posted)

the insurance cost for that transport, and

any wine equalisation tax payable.

Craig, I wondered if you'd need to stagger the despatch dates to avoid the packages arriving at the same time

[400TT]

Originally Posted by byroncobra

Craig, I wondered if you'd need to stagger the despatch dates to avoid the packages arriving at the same time

Yes, just remember that transit times do vary, so just give yourself enough gap between shipments to be safe.

[sideshow]

yes it was duty
i asked the guys at sss
u can sometimes get things sent to 3 differnet people at 3 different address
so they dont notice they are all for same person
these days u have to see if its worth all the fussing around because no matter what u do the govt is always going to sting u for somehting no matter what
and also some places in usa and canada if they r small business they understand about the extra costs so some put a cheaper price on invoice but u better hope customs dont chase up the part
but i find with the big companies they put the correct figure on the invoice

if i need stuff from japan i can get then hidden in doors hehheeh
or if small enough in onboard luggage

[Sloth]

i bought tyres in from the states in April and the freight was NOT included in the calculation. total cost including freight was $1300.00. I did not pay duty or GST as the tyres only cost AU$800.00. The shipment was delayed by customs as it came in so they could check it and i had to send a copy of the invoice to them as well to substantiate the cost.