The good oil: Tax on importing parts.

[ponyride]

Just after some clarification. I've read in posts before that importing over $1k worth of parts ex U.S. attracts tax (GST or duty?). Is that for every dollar over the first $1,000 or including the first $1,000? ie if it's $1200 worth of parts is it taxed on the $200 or $1200?

[mikes68]

From the ATO website: ATO and GST. Note the last line here which suggests that if (in part) it is over $1,000.00 then you will pay GST on it. To me that reads... you will pay GST on the full $1,200 but perhaps there is some other sub-clause tucked away somewhere else...

Goods that qualify for certain customs duty concessions and are also non-taxable for GST include the following items from Schedule 4 to the Customs Tariff Act 1995:

item 15 - goods imported by overseas travellers (provided the goods imported by travellers are not in excess of the duty free allowance)

items 17 and 17A - goods returned to Australia in an unaltered condition (conditions apply)

items 18A and 18B - goods returned after repair or replacement under warranty

item 18C - global product safety recall goods

item 21 - goods imported for repair, alteration or industrial processing, then exported

items 23A and 23B - certain bequeathed goods

items 25A, 25B, 25c - trophies, medals, etc (won or awarded), and

items 32A and 32B - 'low-value goods' or goods on which customs duty and taxes is $50 or less and which have a customs value of less than $1,000.

[S[_]SPECT]

Yep, if the total shipment is over $1k, you pay GST on the lot (inc Transport costs in US) and GST is calculated at the exchange rate on the date it shipped, not the date of purchase.

Examples I've had...

Item bought under $1k, and shipping to AU was still under, however shipping in US took it just over.. GST applied

Items bought at 82c in the dollar, but didnt ship for quite some time.
GST was based on around 91c

Item bought well under 1K, however shipped with someone elses parts.. total package was over so GST applied to mine as well.

[HappyOne]

Ponyride,

Sorry but this might help clarify the picture a bit for others as well and maybe Hybrid or Ozbilt can make this post a sticky for all to benifit from?

I too asked the same sort of question a week or two ago on the forum and we got conflicting responses.

In thinking about it a bit more, maybe the way to clarify this question is simply by way of answers to these three senarios:

1. Is GST & import duties payable on good purchase under $1000 (inclusive of shipping costs)

2. Is GST & Import duties payable on goods purchased under the $1000 limit (exclusive of shipping costs)

3. for purchase orders over the $1000 limit Is GST & Import duties payable only on the portion above the allowable limit or the whole amount.

It just seem's no one really has a definative handle on this one ?

[Hawko]

My understanding is that if the value of the goods is under $1000 AUD there is no GST.
If the value of the goods is over $1000AUD then the freight is added and then the work the GST out on that amount.

I ordered parts and kept it to around the $900 AUD and the freight was roughly $380 AUD and I didn't pay any GST.

[69Boss]

My understanding is that if the value of the goods is under $1000 AUD there is no GST.
If the value of the goods is over $1000AUD then the freight is added and then the work the GST out on that amount.

I ordered parts and kept it to around the $900 AUD and the freight was roughly $380 AUD and I didn't pay any GST.

You must have snuck that one through cause when i bought in some bike parts a couple of years ago i had to pay fees cause the postage took the total to approx $1125.00 (parts alone were about $920.00 AU)

Barry

[Hawko]

You must have snuck that one through cause when i bought in some bike parts a couple of years ago i had to pay fees cause the postage took the total to approx $1125.00 (parts alone were about $920.00 AU)

Barry

It was through a broker so I would assume it was all legit. I did have brokerage fees but no GST or Duty.

[ponyride]

Thanks for all the responses, looks like I'm going to have to speak with the respective departmet(s) and hopefully I'll have some info to post that will be of help in the future.

[nassi]

Thanks for all the responses, looks like I'm going to have to speak with the respective departmet(s)

I cant see that making it any clearer Rick :rotfl:
cheers

[Hawko]

How is the value of goods calculated?
The Customs value of goods imported into Australia is based on information (in particular, the value of the goods) as advised by the importer.
When the goods are valued at more than A$1000 threshold, or include alcohol or tobacco products of any value, a Customs value will be determined that is used as the basis for calculating the value of any duty and/or GST.
The Customs value is combined with other items (customs duty, international transport and insurance costs and, where applicable, Wine Equalisation Tax) to produce the value of the taxable importation (VoTI). The Customs value is equivalent to the Australian currency purchase price of the goods. An example of how the duty and GST on goods valued at A$1000 is calculated:
Customs value
1,000.00
Customs duty @ 5% x $1,000
50.00
(Payable)
International transport and insurance
150.00
VoTI
1,200.00
GST @ 10% x $1,200
120.00
(Payable)
Total payable (Customs duty + GST)
170.00

From here: http://www.customs.gov.au/webdata/resou ... ostfaq.pdf

[ponyride]

Thanks for all the responses, looks like I'm going to have to speak with the respective departmet(s)

I cant see that making it any clearer Rick :rotfl:
cheers

I agree nassi, that's why I came here first!

Thanks for the info Hawko, much digesting to do now. So it looks like Customs duty and GST?? That's a bit stiff.

Just to throw another curly one in the mix, I seem to recall mention in earlier posts about free trade agreements with the U.S. or something like that, and no duty or no GST?

I'll be ringing Customs tomorrow and hopefully I can come back with some info. to share.

[nassi]

i think the FTA would apply only to duty, not GST. I guess thats the advantage of having so many tax's

[Hawko]

i think the FTA would apply only to duty, not GST. I guess thats the advantage of having so many tax's

Pretty sure you are right nassi.

The FTA is only for US made items ponyride. There is a form that the seller has to fill out declaring that it is made in the US. I bought a heap of parts and enquired about this with my supplier but as they only sell they weren't 100% sure on where alot of the parts were made so I didn't bother.

[ponyride]

FTA, GST, VOTI, LCT, WTF, POQ, it's all too much ....

[ozbilt]

FTA, GST, VOTI, LCT, WTF, POQ, it's all too much ....

Don't forget Carbon Tax