GST on imports and exports¶

When you sell to customers overseas, or bring stock in from another country, GST works a bit differently than it does for a normal local sale. The good news is the general picture is simple: exports are usually GST-free, and imports usually have GST applied. This lesson gives you the high-level view. The details can get technical, so complex cases are best checked with the ATO or an adviser.

In one line

Exports are generally GST-free when the conditions are met, and GST generally applies to imports — usually paid at the border.

Why this matters¶

More small businesses sell and buy across borders — a shop selling online to overseas customers, or a business importing stock. Getting the GST right on these sales and purchases means you charge the correct amount, claim the right credits, and do not pay GST you did not need to.

What you will learn¶

That exports of goods and services are generally GST-free when conditions are met
That GST generally applies to taxable imports
When to point a complex case to the ATO or an adviser

Understanding the concept¶

Exports — generally GST-free. The ATO explains that exports of goods and services are generally GST-free if certain conditions are met. For exported goods, one of the main conditions is timing: the goods generally need to be exported from Australia within 60 days. Being GST-free means you do not add GST to the price, but you can still claim GST credits on the purchases you used to make those sales.

Imports — GST generally applies. When goods are brought into Australia, this is usually a taxable importation, and GST generally applies. The ATO works the GST out on the value of the import. This GST is usually paid at the border — at the time the goods come in — rather than through your Activity Statement.

A deferred option for imports. The ATO offers a deferred GST scheme for eligible importers. Instead of paying the GST at the border, an approved importer can defer it and account for it on their Activity Statement instead. There are eligibility conditions to join the scheme, including being registered for GST and reporting monthly.

Because international transactions have extra conditions and exceptions, treat this as an overview. For a specific sale or purchase, check the ATO or ask an adviser.

For accountants & bookkeepers

Exported goods are generally GST-free where they are exported within 60 days (measured from the earlier of receiving payment or issuing an invoice), with scope to request an extension from the ATO. Exported services and other exports have their own conditions. Taxable importations are subject to GST calculated on the value of the taxable importation. The deferred GST scheme lets approved, GST-registered, monthly-reporting importers account for import GST on their activity statement rather than paying it to the border agency on entry. Specific facts change the answer — confirm against the ATO detail.

Example¶

Priya runs an online jewellery shop from Melbourne and ships to customers around the world. When Priya sends an order to a customer in Canada and the goods leave Australia within the required time, that sale is generally GST-free — Priya does not add GST to the price. Priya can still claim GST credits on the materials and packaging she bought to make and send the order.

Sam imports homeware stock from overseas to sell in an Australian shop. When Sam's shipment arrives, GST generally applies to the imported goods, worked out on the value of the import, and is usually paid at the border. Sam's freight agent asks whether Sam is in the deferred GST scheme — if Sam were eligible and approved, the GST could be accounted for on the Activity Statement instead of paid on arrival. Because Sam's situation has a few moving parts, Sam checks the details with an adviser.

Common mistakes¶

Assuming every overseas sale is automatically GST-free — the conditions, including timing, have to be met.
Forgetting that GST generally applies to imported goods, usually at the border.
Thinking GST-free means you lose your GST credits — you can still claim credits on related purchases.
Trying to work out a tricky international transaction alone instead of checking the ATO or asking an adviser.

How this works in myaccountant¶

In the app — when you record a GST-free export sale, myaccountant treats it as GST-free so no GST is added, and reflects it on your Activity Statement. GST you have paid on imported goods can be recorded so it flows through to your statement too.

Key points¶

Exports of goods and services are generally GST-free when conditions are met.
For exported goods, timing matters — they generally need to be exported within 60 days.
Being GST-free still lets you claim GST credits on related purchases.
GST generally applies to taxable imports, worked out on the value of the import.
Import GST is usually paid at the border, with a deferred scheme available to eligible importers.
International cases can be technical — check the ATO or ask an adviser.

Learn next¶

General information only — not tax, super or financial advice.

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