GST Deferral

Goods and Services Tax (GST) of 10% is payable on the customs value of imported goods PLUS duty PLUS freight costs PLUS insurance PLUS any other applicable taxes (WET, LCT etc.). This can result in a large GST bill that must be paid on each shipment before Customs will clear the cargo. If you are an entity registered for GST then you will be eligible to reclaim the GST paid on eligible imports in your next BAS statement, however this can play havoc with your cash flow in the meantime.

There is an alternative. Instead of paying GST on every entry then claiming an input credit back on a BAS statement you can apply to become GST-deferred. This means that you pay the GST and claim the input credit for a whole month’s worth of imports on the same BAS statement. This is a major advantage to your business cash flow.

There are a number of rules and regulations before you can become GST-deferred and the process can be daunting. Two requirements are that you must be doing your BAS statements monthly rather than quarterly, and you must be dealing electronically with Customs (which you are if you are using AussieFreight as your customs broker).

Don’t be deterred by thinking it is all too hard. We consider ourselves to be your business partner in all aspects of international freight movement and arranging GST-deferral is just one of the many additional services you receive when you are an AussieFreight customer. AussieFreight have helped many of our customers successfully apply for GST-deferral and we would like to do the same for you. We will take all the hassle away and leave you free to concentrate on growing your business.

Contact us for further information.

Import / Export