Australian Goods & Services Tax (GST) for International Sellers
How does GST work for international sellers shipping into Australia?
As of 1 July 2018, Australia’s GST requirements apply to goods sold to Australian consumers and shipped from outside Australia, which were previously exempt under the ‘low-value import threshold’. The low-value import threshold was A$1000 or less.
10% GST is required to be added to the price of all international products sold on Kogan that are A$1,000 or less. As a platform operator, Australian law requires Kogan to collect and pay GST on these transactions.
What does this mean for Sellers?
For all products sold and shipped from outside Australia, Kogan will:
- Add 10% GST to the sale price of your products that are A$1,000 or less;
- Collect the 10% GST from customers and remit it directly to the Australian Taxation Office.
Accordingly, Sellers do not have to do anything for products that are A$1,000 or less.
Existing arrangements for collection of GST at the border for all goods over A$1,000 remain unchanged (including the imposition of customs duty for some items), so Sellers do have to add 10% GST to their product prices for products over A$1,000 and collect the GST for the Australian Tax Office. Further details can be found below.
What else is required of you?
- Shipping Documents
For ALL orders shipped to Kogan customers into Australia, there are two requirements for the shipping documents you need to be aware of.
- Include the Kogan ABN number below in your customs documents provided with each shipment. This is the vendor ID in the Integrated Cargo System (ICS), which is a field on both the self-assessed clearance and import declaration.
Australian Business Number (ABN): 53 152 570 351
- In the customs section that requires you to specify whether GST has been paid, please input “Yes”
If you are using the CN 22 form when shipping to Australia, you will find that there is no provision on this form to put the ABN. As such, you are required to;
- Clearly label the box with the message "GST PAID" and Australian Business Number (ABN): 53 152 570 351
- Include a commercial invoice on the box with the ABN details and value of good
NOTE: You should only use this ABN for orders made on kogan.com
What you need to do: How will GST be collected
Products over A$1,000 before GST
You need to add 10% GST to your sale price and use your Direct Duty Paid (DDP) solution with your shipping partner. If multiple items under A$1,000 combine in an order that is then over A$1,000 you will be responsible for the GST.
A$1,000 or under before GST
Kogan will add GST to the sale price of the goods, and we will collect it from the customer. Prices will be displayed on a GST inclusive basis. The customer will see the price after we have added GST. There will be no change to our fees charged to you. All GST collected will be remitted by Kogan to the Australian Taxation Office. You may wish to revise your product pricing to ensure you are still competitive in Australia after the 10% GST is added to your prices, as customers will see a 10% increase on all prices.
If you also sell into Australia directly or through other channels, you may have new obligations and we recommend you get appropriate advice. For more information on the new GST rules, visit https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/