The ATO advises that rather than determining the value of international transport, insurance and other related services, the importer can elect (from 1 October 2016) to use a 10% uplift on the Customs value to determine the value of a taxable importation of the relevant goods.
This election is not available if the importer is not registered for GST purposes, or the goods imported are wine or luxury cars.
If you are a GST-registered importer, to calculate the value of the taxable importation for GST purposes, you are no longer required to identify the exact amount paid for:
- International Transport
- Marine Insurance
- Loading or Handling
- Service Costs for the Transport
You may, however, opt to use an uplift factor, which is currently 10% of the customs value of the imported goods. Â If you wish to change the way the GST on your imports is currently calculated, or you have other questions, talk to us here at Colless Young.
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For further information, see the ATO page titled “GST cross-border transactions between businesses†at: https://www.ato.gov.au/Business/International-tax-for-business/In-detail/Doing-business-in-Australia/GST-cross-border-transactions-between-businesses/?page=1#GST_registered_importer
