Imports worth more than $1,000 attract 10% GST at the border, calculated on the customs value plus any duty, freight and insurance, payable before the goods are released. Orders of $1,000 or less are usually taxed at the checkout instead: overseas sellers over the $75,000 threshold must charge Australian GST at the point of sale. Registered businesses claim it back either way.
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Over $1,000: the border calculation.
Import GST isn't 10% of what you paid the supplier. It's 10% of the value of the taxable importation: customs value + customs duty + international freight + insurance. Your customs broker or freight forwarder works it out on the import declaration, and the goods don't clear until it's paid. That import declaration is also your evidence for the credit: imports don't come with a tax invoice, and don't need one.
Under $1,000: taxed at the checkout.
Since the low-value imported goods rules, overseas retailers and platforms selling more than $75,000 a year into Australia must charge GST on orders of $1,000 or less at the point of sale. It's why AliExpress, Amazon US and eBay checkout totals grew 10%. If you're buying for a GST-registered business, supply your ABN and a statement that you're registered: business-to-business low-value sales shouldn't be charged GST at the checkout at all.
Deferring import GST (the cash-flow trick).
Paying GST at the border, then waiting until the next BAS to claim it back, ties up cash. The deferred GST scheme fixes that: approved importers don't pay at the border. The GST is deferred onto the BAS, where the payment and the credit land in the same statement and cancel out. The main condition: you must lodge monthly, online. For regular importers it's usually worth switching cycles for.
Claiming it back.
Import GST is claimable like any other GST credit: you must be registered, the goods must be for business use, and your evidence is the import declaration. Not registered? Then import GST is just a 10% cost on every shipment, which is why importers and e-commerce stores tend to register well before the threshold forces them to.
Quick answers.
Can I claim back the GST I paid at customs?
Yes: if you're GST-registered and the goods are for business use, claim it on your next BAS. The import declaration is your evidence; no tax invoice is needed for importations.
Can I avoid paying GST at the border?
Through the deferred GST scheme, yes, approved importers defer it onto the BAS instead, where it usually nets against the matching credit. You must lodge monthly and online to stay in the scheme.
Is GST charged on the freight too?
Effectively yes, for imports over $1,000, GST is calculated on the customs value plus duty, international freight and insurance, not just the price of the goods.
I'm not GST-registered: can I recover import GST?
No. Unregistered importers simply wear it as a cost. If you import regularly, registering (even under $75,000), usually pays for itself in reclaimed import GST alone.
Related guides: GST on exports · How GST credits work · GST for Shopify stores · GST on marketplace sales · Backdating GST registration
Importing regularly? Registration pays for itself.
Lodged by Registered BAS Agent 25972850 · tax deductible · free help on 1800 546 526.