Was wondering how the import duty worked for items over $1000.
- Is it the entire invoice being over $1000 and GST being charged on the whole thing?
- Does this include shipping?
GST over $1000?
frowny on 19/10/2016 - 11:31
Comments
Thanks for that, looks like I'm going to be waiting for the Euro to crash before I spend any money.
When you calculate whether the item has crossed the threshold of $1000, only the value of item is used, shipping is not included in the calculation.
However, if it crosses the $1000 threshold, both the value of the item and shipping are included in the calculation for amount payable.
Also there is a processing fee as mskeggs has indicated, it's around 5% (or $50?) of the total amount used in the calculation.
Best to ask a friend or relative to bring it in as an opened product when they fly in.
Being opened doesn't change anything. The question is, do you have something over $900 in value obtained overseas or duty free, or claimed TRS.
Being opened doesn't change anything. The question is, do you have something over $900 in value obtained overseas or duty free, or claimed TRS.
They don't document the goods you took out of the country if you didn't claim TRS on. You could just say you left Australia with it as a personal belonging and are now returning with it.
Opening it and throwing the packaging away at least makes it look like you didn't just buy it 5 minutes ago.How would a customs officer prove you didn't leave Australia with described, high value item and thus charge you the GST on it, if there is no record of it being tax refunded? (which it won't have since you didn't buy it in Australia)
And the value of a second hand item is much lower than a NIB item.
The onus is on you to provide proof of the items purchase. They can hold goods pending production of proof.
@mskeggs: Jewellery and watches etc do not depreciate. Electronics and such do in the eyes of Customs.
The onus is on you to provide proof of the items purchase.
So assuming that I am not trying to evade GST, I bring my laptop through the airport (no TRS claimed), and then return to Australia with it, they can confiscate my personal laptop at customs until I provide the proof of items purchase?
A normal person doesn't a stash of receipts for every item when they travel with, especially if it's personal belongings.
From your statement, you seem to be implying I should be carrying receipts for my smartphone, expensive watch, tablet/laptop, camera.
Doesn't that make you even more suspicious..?Being opened doesn't change anything. The question is, do you have something over $900 in value obtained overseas or duty free, or claimed TRS.
If there is no record of a TRS refund on you for that item, being opened sure looks a lot more like personal belongings/used/"I brought this out of the country with me" (and didn't claim TRS), and am returning with it, than new.
@cwongtech: Customs have access to databases where they can search serial numbers etc and establish which market goods were sent to and approximate dates. They can easily prove which country high value goods were purchased. If you lie and are caught out they can fine you substantial amounts as well as demanding GST, import duty etc.
Customs have access to databases where they can search serial numbers etc and establish which market goods were sent to and approximate dates.
To do that, the serial numbers would need to be uploaded by every manufacturer on the planet, not to mention, the serial "numbers"
would need to be country specific, and roughly sequential.
Looks like it's pen and paper
So by that method, TRS'ing an item while leaving the country under your name, and getting a friend to bring it back into the country would definitely work then, since most receipts from retailers (for example laptops) don't have the serial number of the item recorded, only the model number and price.
What if the serial number tag fell off? It does happen.
My UX303 laptop retails for $1799 in Australia, the serial number is literally a sticker on the bottom of the laptop.. right next to the heat vent. This model is sold all over the world, with a heap of different variants that dictate its value including processor, ram, screen resolution and storage.If you lie and are caught out they can fine you substantial amounts as well as demanding GST, import duty etc.
You can reduce your chances of not getting caught by not bringing back the item with its glorious new packaging that screams "I'm probably over $900, please search me customs officer"
Also, how would one prove that a traveller from overseas is not bringing a laptop or camera for personal use during travel, and intends to leave the country with it?
Sure, you may be able to prove that the item the traveller was carrying may have originated from an Australian retail channel, but how do you prove that it wasn't a gift?
Would customs charge GST on everything the tourist is carrying, that is valued over $900, to be refunded when they leave?
There's a form to write down your expensive valuables for travellers leaving Australia intending to return, but no form for tourists entering into Australia.
If it's over $1,000 it depends on the way it arrives - by air or sea.
There will be customs charges for inspection, some associated fees etc etc. As a very rough yardstick, budget on around 25-50% of the cost of the goods for taxes etc. So if the item costs $1,100, allow for around $275 to $330 in GST, inspection, AQUIS fees etc.
The processing fee is 5% capped at $50.
If I'm not mistaken shipping cost is always included in the calculation.
If I'm not mistaken shipping cost is always included in the calculation.
It's not included to see if the item has crossed the $1000 AUD threshold.
It is included when the amount payable is calculated, if the threshold is been broken.Do you have official source of this info? I don't seem to find it anywhere on the net.
Looks like they changed the customs website to www.border.gov.au
Can't seem to find the customs page anymore :|In a nutshell,
Goods under $1000? Nothing to pay.
Goods over $1000? Pay GST on item, shipping (even if it comes from overseas which it would have), and insurance + other applicable duty and wine equalisation tax.You need to know that:
For goods that are worth equal to or under AUD1,000, there are no duties, taxes or charges to pay.
For goods that are worth more than AUD1,000, you will need to fill out a special form called an Import Declaration, and pay duties, taxes and charges.
You will need to pay duties and taxes on some goods (like tobacco or alcohol) regardless of their valueLooks like they haven't completely updated their website either..
According to this useless pdf you need to visit a page on the customs website, and the link takes you back to the border homepage.GST is payable on imported goods unless the goods are covered by an exemption. The A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) states that the importer shall pay GST at the same time and in the same manner as customs duty is paid. It also provides that the rate of GST applicable on taxable importations is 10% of the value of the taxable importation. The value of the taxable importation is the sum of:
- the customs value (CV )of the imported goods
- any duty payable
- the amount paid or payable to transport the goods to Australia and to insure the goods for that transport (T&I),and
- any Wine Equalisation Tax (WET) payable, if applicable.EDIT: Additional links from ATO
https://www.ato.gov.au/Business/GST/In-detail/Rules-for-spec…
https://www.ato.gov.au/Business/GST/In-detail/Rules-for-spec…Hope this answers your question
Question then is, if I'm buying something on the edge (say 720 Euro right now), and it manages to hit just below $1000 when I buy it, will I be in danger of taxes if the exchange rate switches it to above $1000 by the time it gets to Australia?
@smileymiwo: hi custom charges duty (if any) with exchange rate at the time they receive the shipment.
@foxmulder:
No its the day it leaves the source country
https://www.border.gov.au/Busi/Cust/Aust/Australian-Customs-…
Legislation
Subsection 161J(1) of the Customs Act 1901 (Customs Act) requires that, when ascertaining the value of any imported goods, an amount in a foreign currency be expressed in Australian currency according to the rate of exchange on the day of exportation.That will become your customs value and the base that gst 10% will be charged upon.
- customs processing fee of $50 for electronic lodgement
https://www.google.com.au/url?sa=t&source=web&rct=j&url=http…
- customs processing fee of $50 for electronic lodgement
Shipping is not included in the GST (ie. if your item is worth $975 plus shipping $50, you should be clear from GST). Also remember its not just GST (duty tax) there's also import tax. So you will be paying more than just the 9% GST.
Do you have official source of this info? I don't seem to find it anywhere on the net.
What is 'import tax'?
I've paid gst plus the processing fee a couple of times, but never an import tax.That processing fee is what I meant when I said import tax.
Importing item value over $1000 will attract duty (for alcohol, cigarette, etc, but generally no duty for other items), taxes (10% GST on item value) and 5% processing fee capped at $50 (this is really just handling fees for custom to process that first two charges).
Did someone come through with a bucket of negs?
Nagging everything is just a waste of everybody's time.To jump onto a month old post if someone can help.
Looking to buy my jr rail passes from overseas and will come to $1100au. They will be posted to me here, but are for a service delivered in another country. Will this technically be subject to gst?
If they were something that could be emailed and printed (they can't) it obviously wouldn't be, and I am paying for a service in another country in advance.
Any ideas?
Yes and yes.
You will also likely be charged a processing fee.
In my experience, couriers are diligent about collecting the GST, Auspost, not really if the parcel value is below the cut off.