Goods and services tax (GST) is payable on most goods imported into Australia (taxable importations). GST on a taxable importation is payable by businesses, organizations and private individuals, whether they are registered for GST or not. However, if you are a GST-registered business or organization and you import goods as part of your activities, you may be able to claim a GST credit for any GST you pay on those goods.
Paying GST on imported goods
The Department of Home Affairs collects GST on taxable importations. The GST payable is 10% of the value of the taxable importation.
The value of taxable importation is the sum of:
• the customs value of the goods
• any customs duty payable
• the amount paid or payable to transport the goods to their place of consignment in Australia
• the insurance cost for that transport
• any wine tax payable
Generally, GST is payable before the goods are released by Home Affairs. If you are not registered under the deferred GST scheme then the GST is payable at the same time, at the same place, and in the same manner as you would customs duty (or would be payable if the goods are subject to customs duty).
Deferred GST
As an importer, the deferred goods and services tax (DGST) scheme allows you to defer payment of goods and services tax (GST) on all taxable imports into Australia. You need to apply from ATO for approval.
To be eligible to participate in the deferred GST scheme, you must:
• have an Australian business number (ABN)
• be registered for GST (you can register for GST and apply for an ABN on the one form if you don't already have an ABN)
• lodge your activity statements online and pay electronically
• lodge your activity statements monthly (if you are currently lodging quarterly, this will be changed to monthly once we receive and approve your application)
• ensure the goods or excise-equivalent goods are for home consumption
• if you are a member of a GST group, ensure your nominated representative is registered for the DGST scheme.
If you are eligible and want to apply for DGST status, complete the online Application for approval to defer GST on imported goods form (NAT 75136). The application form allows you to check your eligibility before you apply. If you are eligible, continue your application using the same form. If you have recently changed to a monthly BAS reporting cycle, you need to wait one business day before lodging your GST deferral application.
Deferred GST obligations
If you participate in the deferred GST scheme, you must meet the following requirements:
• Lodge and pay your business activity statement (BAS) online using either
- Online services for business
- Standard Business Reporting (SBR)-enabled software
- your registered tax and BAS agent lodging on your behalf using Online services for agents
- our online services for individuals and sole traders
– using your myGov account.
• Lodge on time – if you don't lodge on time, you may be withdrawn from the deferred GST scheme.
• Keep up to date with payments – if you default from a payment plan, you may be withdrawn from the deferred GST scheme.
Revoking the deferred GST scheme
To continue to benefit from deferring your GST, make sure all of your tax obligations are up to date and meet your deferred GST approval requirements. If you don't, you'll no longer be part of the deferred GST scheme. This means:
• customs will keep your goods until you pay the GST.
• you'll have to register for the scheme again.
This article is for informational purposes only and does not form part of our advice. This article is based on ATO’s guideline. We could help you to apply DGST scheme on your behalf. Please contact our team if you need any assistance.
Claire Chang