GST on Australian purchase being sent to NZ.

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Geektastic

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#272246 16-Jun-2020 13:34

I was going to order a bicycle component from an Australian seller.

Since it is leaving Australia, won't ever be used in Australia and so on, I thought Australian GST would not be payable. This wasn't clear from the website so I asked them and this is what they said

"Thanks for your email. Prices are in AUD, and inclusive of GST.
Because this purchase will take place from an Australian Business, and shipped elsewhere, it's not an export and as such is not exempt from GST. There may be import duty payable in NZ - but you'll need to check with the relevant department on your end, I'm afraid."

This does not sound correct to me, but what do I know? I am sure others here will have more experience.

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#2505732 16-Jun-2020 13:42

Technically the GST should be removed ... but I suspect the ATO make the claiming back of GST from exported goods tricky/not worth the effort for small merchants... and iIf the seller rarely exports they may have little idea how the system works, so you might get lumped with it....

Geektastic

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#2505733 16-Jun-2020 13:49

The total would be AUD340 inc shipping. Is that now GST free here on arrival?

Linux

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#2505740 16-Jun-2020 13:55

Geektastic:

The total would be AUD340 inc shipping. Is that now GST free here on arrival?

@Geektastic Nope

sbiddle

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#2505741 16-Jun-2020 13:55

wellygary:

Technically the GST should be removed ... but I suspect the ATO make the claiming back of GST from exported goods tricky/not worth the effort for small merchants... and iIf the seller rarely exports they may have little idea how the system works, so you might get lumped with it....

rb99

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#2505747 16-Jun-2020 14:02

Linux:

Geektastic:

The total would be AUD340 inc shipping. Is that now GST free here on arrival?

@Geektastic Nope

Shouldn't that be - It depends...

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#2505755 16-Jun-2020 14:17

@Geektastic Could you buy this bicycle component in New Zealand?

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Geektastic

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#2505757 16-Jun-2020 14:18

Out of stock everywhere. No idea when in stock etc etc.

Geektastic

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#2505762 16-Jun-2020 14:24

If the supplier doesn’t collect NZ GST then according to the Customs website, they won’t collect it either if it’s below $1000.

SirHumphreyAppleby

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#2505769 16-Jun-2020 14:32

Geektastic:

"Because this purchase will take place from an Australian Business, and shipped elsewhere, it's not an export and as such is not exempt from GST.

The wording here is a little odd. Are you using an Australian business to make the purchase? If so, the rules may be a little different regarding who is able to claim GST from exports.

If this is a personal purchase, then no, GST in Australia would not apply.

Geektastic

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#2505780 16-Jun-2020 15:00

Purely personal purchase by me here in NZ.

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#2505805 16-Jun-2020 15:20

Geektastic:

The total would be AUD340 inc shipping. Is that now GST free here on arrival?

if the seller is registered with customs NZ then GST is payable

if not registered, then the threshold for GST is $1000 in which case no

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mudguard

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#2505862 16-Jun-2020 15:53

What was the bike part? A lot of manufacturers are tightening up shipping outside of 'borders' now.

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#2505915 16-Jun-2020 16:08

wellygary:

Technically the GST should be removed ... but I suspect the ATO make the claiming back of GST from exported goods tricky/not worth the effort for small merchants... and iIf the seller rarely exports they may have little idea how the system works, so you might get lumped with it....

There is no claiming back, you simply record it as a zero rated supply on the BAS lodgement. As long as it is less than 60 days from invoice to export, it's not subject to GST.