GST on Imports & Exports in Australia

How GST works at the border

Australia's GST is a destination-based consumption tax. The principle is straightforward: goods and services consumed in Australia should bear Australian GST, while those consumed overseas should not.

In practice, this means:

• Imports — GST applies to most goods entering Australia, collected either at the border or at the point of sale depending on value
• Exports — most goods and many services leaving Australia are GST-free, so Australian businesses don't add GST to the price charged to overseas customers

This guide covers both sides in detail: the tax you pay bringing goods in, the GST-free treatment when sending goods or services out, and how to report it all on your BAS.

Importing goods into Australia

GST is payable on most goods imported into Australia. This applies to businesses, organisations, and private individuals — it does not matter whether you are registered for GST or not. You pay GST on imports the same way you pay customs duty: before the goods are released from customs control.

What counts as a taxable importation

An importation of goods is a taxable importation under section 13-5 of the GST Act unless the goods are:

• GST-free — goods that would be GST-free if supplied domestically (e.g., basic food, certain medical aids, precious metals)
• Input-taxed — goods that would be input-taxed if supplied domestically (rare for physical goods)
• Covered by specific customs exemptions — goods imported under the Tradex scheme, certain re-imported goods, goods for diplomatic use, or goods covered by specific customs duty concessions that also exempt GST

Non-taxable importation examples

Calculating GST on imports

GST on an import is 10% of the value of the taxable importation. The value of the taxable importation is not just the price you paid for the goods — it includes several other costs.

The formula

What each component means

• Customs value — the transaction value of the goods, which is generally the price actually paid or payable for the goods when sold for export to Australia. This is typically the FOB (Free On Board) price.
• International transport & insurance — the cost of shipping the goods to Australia and insuring them for that journey. This does not include domestic transport within Australia after the goods arrive.
• Customs duty — import duty charged under the Customs Tariff Act 1995. Most goods attract either 0% or 5% duty. Free trade agreement rates may reduce this to 0% for goods from partner countries (you need a Certificate of Origin).

Worked example

Low value goods ($1,000 or less)

Since 1 July 2018, GST applies to low value imported goods — physical goods with a customs value of A$1,000 or less. Before this date, these goods entered Australia GST-free.

How GST is collected on low value goods

For goods at or below $1,000, GST is not collected at the border. Instead, it is collected at the point of sale by:

• The overseas supplier, if they sell directly to Australian consumers and meet the $75,000 GST turnover threshold
• The electronic distribution platform (marketplace), if the goods are sold through one (e.g., Amazon, eBay)
• The re-deliverer (mail forwarding service), if used

Multiple items in one parcel

If you buy several low value items from the same supplier and they ship together in one consignment with a total customs value over $1,000, the supplier can choose to either collect GST at the point of sale or let it be collected at the Australian border. If the items are shipped separately, each parcel is assessed individually.

Business-to-business purchases

If you are GST-registered and buying low value goods for business use, you should provide your ABN to the overseas supplier. The supplier should then not charge GST on the sale, because you will account for GST through your BAS under the reverse charge rules. If the supplier charges GST anyway, you may not be able to claim an input tax credit for that amount from the ATO — you would need to seek a refund from the supplier.

Deferred GST scheme

The deferred GST (DGST) scheme is one of the most significant cash flow tools available to Australian importers. Instead of paying GST to the Australian Border Force when your goods clear customs, you defer the GST to your next monthly BAS.

How it works

1. Your goods clear customs without paying GST at the border (customs duty is still paid upfront)
2. The ATO pre-fills the deferred GST amount at label 7A on your next monthly BAS
3. You claim the matching input tax credit at label 1B in the same BAS
4. The two amounts offset each other — for most businesses, the net cash impact is zero

Eligibility requirements

• You must be registered for GST
• You must lodge your BAS monthly — quarterly lodgers must switch to monthly before applying
• You must have a valid ABN
• No outstanding tax debts
• If you are part of a GST group, the nominated representative must be registered for the scheme

How to apply

Complete the online Application for approval to defer GST on imported goods (NAT 75136) through the ATO. Once approved, the scheme applies to all your future taxable importations until you withdraw or are removed.

Claiming GST credits on imports

If you are registered for GST and import goods for use in your business, you can claim the GST paid on those imports as an input tax credit. The process depends on whether you are on the deferred GST scheme or not.

Standard imports (not on DGST)

• GST is paid to the ABF when goods are cleared from customs
• Claim the credit at label 1B on your BAS in the period you paid the GST
• You need the import declaration (N10 form) as your evidence — this is the document your customs broker provides after clearing the goods

Deferred GST imports

• GST is pre-filled at label 7A on your monthly BAS
• Claim the matching credit at label 1B in the same BAS period
• Verify the pre-filled amount at 7A matches your records before lodging

When you cannot claim

• You are not registered for GST
• The goods are for private or domestic use, not business use
• The goods relate to making input-taxed supplies (e.g., residential rental property furnishings)
• You do not hold a valid import declaration
• Your customs broker is listed as the “importer of record” instead of your business — ensure your business name and ABN appear on the import declaration

Imported services & digital products

GST on imported services works differently from goods. There is no border to collect tax at, so the rules depend on who the buyer is.

If you are a consumer (not GST-registered)

Overseas suppliers of services and digital products must register for Australian GST and charge 10% GST if their Australian sales exceed $75,000 per year. This is why you see GST on Netflix, Spotify, and other digital subscriptions — the overseas provider collects and remits it to the ATO.

If you are a GST-registered business (reverse charge)

When your business buys services or digital products from an overseas supplier, the supplier should not charge you Australian GST. Instead, you apply the reverse charge:

1. Self-assess 10% GST on the purchase price
2. Include this GST amount in your BAS as part of your GST on purchases
3. If the purchase is for a creditable purpose (i.e., used in your business to make taxable supplies), claim a matching input tax credit in the same BAS period

For most businesses, the reverse charge is cash-neutral — you owe the GST and claim it back in the same BAS. It only has a real cost if the purchased service relates to making input-taxed supplies (where you cannot claim a credit).

Common imported services subject to reverse charge

• Cloud computing and SaaS subscriptions (AWS, Google Cloud, Salesforce)
• Overseas consulting, legal, and accounting services
• Digital advertising (Google Ads, Meta Ads)
• Software licences from overseas vendors
• Overseas design, development, and creative services

Exporting goods — GST-free rules

Most goods exported from Australia are GST-free under section 38-185 of the GST Act. This is a significant benefit for Australian exporters — you do not charge GST to your overseas customers, but you can still claim full input tax credits on the GST you pay on your Australian business expenses (raw materials, overheads, freight, etc.).

Conditions for GST-free export of goods

To qualify as GST-free, the goods must be exported from Australia before or within 60 days of the earlier of:

• The date you received any payment for the goods
• The date you issued an invoice for the goods

Documentary evidence

You must hold sufficient documentary evidence that the goods were exported. This typically includes:

• Bill of lading or air waybill
• Export declaration
• Commercial invoice
• Customs export documentation

The evidence must be obtained within the 60-day period, or if obtained after that period, before the due date for lodgement of your next BAS.

Goods sent to external territories

Goods sold to residents of Australia's external territories (such as Norfolk Island, Christmas Island, and Cocos Islands) may also be treated as GST-free export sales, subject to the same conditions.

Exporting services

Services supplied to overseas clients can also be GST-free under section 38-190 of the GST Act. The rules are more nuanced than for goods because services don't physically cross a border.

When services are GST-free

A supply of services is GST-free if:

• The recipient is a non-resident who is not in Australia when the services are performed
• The services are for consumption outside Australia

When services are NOT GST-free (even if the client is overseas)

Tourist Refund Scheme (TRS)

The TRS lets Australian residents and overseas visitors claim a refund of GST (and wine equalisation tax) paid on goods purchased in Australia that are then taken out of the country. It is administered by the Australian Border Force, not the ATO.

Eligibility conditions

• Goods must total $300 or more (GST-inclusive) from a single store
• Purchased no earlier than 60 days before departure
• You must have the original tax invoice
• Goods must be carried as hand luggage or worn when departing (not checked baggage, with limited exceptions for oversized items)
• Claim at the TRS facility at the airport at least 30 minutes before departure (60 minutes for cruise passengers)

What you get back

The refund is the GST component of the purchase price. On a $330 purchase, the GST component is $30 (1/11th of the GST-inclusive price). Refunds are paid by cheque, credit card, or to an Australian bank account.

BAS reporting for international transactions

Getting the BAS labels right for international transactions is where many businesses make mistakes. Here is where each type of transaction is reported.

Common mistakes

These are the errors the ATO flags most often for businesses dealing with imports and exports.

Import mistakes

1. Wrong importer of record on the N10 form — If your customs broker or freight forwarder is listed as the importer, you lose the entitlement to claim the GST credit. Always confirm your business ABN appears as the importer.
2. Not reconciling deferred GST — The pre-filled amount at label 7A must match your import records. If it doesn't, investigate before lodging. Discrepancies can result from delayed customs processing or goods crossing in a different period than expected.
3. Claiming GST credits on private imports — GST on goods imported for personal use is not claimable, even if you are GST-registered. Only business-use imports qualify for input tax credits.
4. Ignoring the reverse charge on imported services — If you buy consulting, SaaS, or other services from overseas and the supplier does not charge GST, you must self-assess the GST under the reverse charge rules. Failing to do so is an underpayment of GST.
5. Incorrect HS code classification — Getting the Harmonised System tariff code wrong can mean you overpay or underpay customs duty, which in turn affects your GST calculation. Underpayment can attract penalties, back-payments, and goods being flagged for inspection.

Export mistakes

1. Missing the 60-day export deadline — If goods are not exported within 60 days and you have not obtained an extension, the sale is not GST-free. You must account for GST as if it were a domestic sale.
2. Not keeping export evidence — You need documentary proof that goods actually left Australia (bills of lading, air waybills, export declarations). Without it, the ATO can deny the GST-free treatment on audit.
3. Treating Australian property services as GST-free exports — Services connected with real property in Australia are taxable regardless of where the client is based. An overseas client does not make the service an export.
4. Excluding export sales from G1 on the BAS — Export sales are GST-free but are still sales. They must be included in G1 (total sales) and separately reported at G2 (export sales).

Frequently asked questions