For online retailers, if you sell, or expect to sell, over 75,000 AUD to Australian customers within a 12-month period, you are required to remit GST directly to the Australian Taxation Office (ATO) via a Simplified GST for Importers process.
If you do not reach the 75,000 AUD threshold, you will not need to register for GST.
The session can expire quickly so be sure to already have your AUSid application open before entering your username.
Things to note about Simplified GST registration:
If you are currently collecting GST from your customers at the time of checkout on orders under 1,000 AUD, we do not recommend managing a two-tiered system where you collect on orders under 1,000 AUD and then let your customer pay upon delivery when the order is over 1,000 AUD. The issue with this and the recommended course of action are explained below.
The product value on an order was 740 USD, just below 1,000 AUD. If the commercial invoice is listed at 740 USD (and the currency rates change from the time you took the order to the time the shipment cleared customs), it may now be valued above 1,000 AUD. In this scenario, if you collected 10% GST at time of checkout the customer would have to pay 10% GST again when the shipment clears customs, which is double taxation. If you are double taxed, you will need to refund your shopper and then reduce your next tax reporting by the appropriate tax amount in the next reporting period. Do not attempt to amend a prior report.
Note that when an order exceeds 1,000 AUD, Australia will collect GST at the time of customs clearance. If you collect GST at the time of checkout and the conversion rate changes before it is delivered, the customer could be double taxed - by you and by customs. This negative shopper experience can be avoided by doing the following:
Send all orders over 1,000 AUD DDP (Delivery Duty Paid). DDP, also known as billing the duties, taxes, and fees to the shipper, will ensure GST, duty, and other cross-border fees are billed back to you by the carrier. You must be sure to send the shipment via a carrier and service level that supports DDP. If the order is sent DDP (and the customs documentation does not reflect your collected GST at the time of the order), you will be billed by the carrier for GST and duty. This means you would not remit GST back to the ATO on orders over 1,000 AUD, because you paid it through the carrier.
If a shipment is sent with USPS, do I still need to collect Australian GST?
Yes - once you have your AUSid, you need to collect GST on all orders, including those shipped with the USPS. However, the USPS does not have a DDP service - so if the orders exceed 1,000 AUD, Zonos recommends using an express carrier like UPS, DHL, or FedEx and sending the shipment DDP to avoid running into the double taxation issue discussed above.
Will Zonos inform me if I need to register for Australian GST?
We will periodically send notices to retailers who have reached the threshold, but the responsibility to monitor your Australian imports and register when needed lies with you.
See Zonospolicies and agreements.
Australian Low-Value Tax Law
Learn how Zonos helps manage the Australian Low-Value Tax law.
The Australian low-value tax scheme, also known as the Simplified GST law, has been in effect since July 1st, 2018. Let’s decode this law and what it means for businesses selling goods to Australia.