How to Pay Tax for Imported Goods under $1000?

This is my first time buying something outside of Australia so from what I'm understanding you have to pay GST for under $1000 since it no longer free.

Where do you pay the tax, to the courier? Also, if the sender declares it as a gift instead of business, then does it mean I don't need to pay GST?

Comments

  • +2

    In most cases you wont be charged it.

    The ATO say that you'll be charged but the reality is that you wont.

  • +1

    Well for 1, the bigger platforms such as eBay and Amazon and Ali have the gst auto built in.

    Otherwise usually the forwarder such as DHL will call you if you get pulled up on needing to pay fees.

    • They'll only do so if the value is greater than $1000

  • +1

    If the item is sold by a marketplace, or big seller, they will collect the tax (e.g. Ebay, Amazon).
    If the seller does not collect the tax, and ships via Auspost, you will not be asked to pay the tax. Auspost does not collect low value import tax.
    If the seller does not pay it, and ships via courier company, such as FedEx or UPS, the courier company will collect the tax plus an admin fee. They will send you an invoice to pay when the item is in Australia. In this last case, the tax will be levied on the total value of the item plus shipping cost.

    • ^Plus any Insurance value

      But my understanding is that for import value less than $1000 the assumption is that tax is paid at checkout, so even via a courier it'll come tax free.

      • Agreed, with the couriers it is not always clear cut.

  • +10

    Where do you pay the tax?

    At any Harvey Norman store.

  • Where do you pay the tax?

    Pax the tax, not pay :p

    • EDIT: For context, title originally had 'Pax Tax'

  • Where do you pay the tax, to the courier?

    Yes, just leave an envelope with cash under your door mat.

  • Bought something new from a US seller on ebay priced at about AUD300 plus another AUD100 for shipping.

    Expected that at some point in the process I'd get hit with another $40 for GST.

    Was pleasantly surprised to see that not only did ebay handle the payment of GST, and ebay shipping handled the customs, it had included approximately the right amount extra in the price shown on ebay for the item.

  • Are you using a card that doesn't have overseas transaction fees?

  • Gerry Harvey will gladly help you with this enquiry.

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