GST and International Freight

Target Areas for Audit
July 8, 2016
Business Performance
July 8, 2016

Importation of goods is the transport of goods from a place outside Australia to their place of consignment in Australia.

The place of consignment states
• The transport or other services that brought goods to Australia will be GST Free
• The extent of the transport and other service cost will include in the value of taxable importation will determine the value of GST payable on import.

The goods brought to Australia by international transport are GST FREE. Also, any other charges such as supplies of loading, handling and other services will also be GST FREE.

The subcontractors who provides transportation services within Australia will be a taxable supply and subject to GST, if the subcontractor is registered for GST.

However, if the subcontractor provides international transport to non resident, who is not in Australia is GST free. Also, any supplies of loading, handling and other services will be GST FREE as well.

The GST payable on importation will depend on
• Transport cost and insurance charges under the agreement.
• Cost of loading, handing and other services provided to facilitate the transport of goods.

At Booksmart Accountants Cranbourne, we can assist small business owners in their business review to enable you to recognize how your small business is doing when it comes to profitability, cash flow, budgets and prepare for expansion. 

Call Tax Accountants Cranbourne at 1300 300 106 for further information.