ap_gst16

Is GST payable on imports?

Yes! GST is payable on imports, though it depends on who is doing the importing

Who pays the GST on a taxable importation?

On what value does an entity have to pay GST on imports?

Who has to pay the GST? (Section 9-40)

The entity making the taxable supply is liable for the GST. The GST is 10% of the value of the taxable supply. Value is 10/11 th of the price.

What about importations? (Division 13)

GST is payable on taxable importations (Section 13-5). Generally, goods imported into Australia will be subject to GST. Some importations, however, are non-taxable (section 13-10).

These include:

an importation of goods that would have been GST-free or input taxed if it had been a supply; or

a non-taxable importation under Division 42.

The non-taxable importations in Part 3-2 compliment several existing exemptions from Customs duty and are listed by reference to Schedule 4 of the Customs Act 1901.

The categories of non-taxable importations include:

certain repair and warranty-related importations (section 42-5);

certain goods of insubstantial value (section 42-5); and

goods in the accompanied baggage of passengers and crew arriving from overseas within the prescribed concession limits.

Things other than goods (eg. services) supplied from overseas for use in Australia, while not taxable may be subject to GST

Who pays the GST on a taxable importation?

Anyone, whether an entity is registered or required to be registered for GST.

However, only registered entities will be entitled to an input tax credit for GST paid on importation of goods.

On what value does an entity have to pay GST on imports?

10% of the value of the taxable importation.

And what is the value of the taxable importation?

the sum of:

the customs value of the goods;

the amount paid or payable to transport and insure the goods to the extent not included in the customs value; and

the customs duty payable on the importation.