importing and GST/VAT
Submitted: Wednesday, Oct 24, 2007 at 20:54
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howie
buying an item from UK who have VAT, which is same (but higher rate) than our GST.
item is under $1000 so i am told i do not pay import taxes, but the question is, should the UK firm knock off their VAT charges?
i am GST registered in Oz
Reply By: Member - Oldplodder (QLD) - Wednesday, Oct 24, 2007 at 21:02
Wednesday, Oct 24, 2007 at 21:02
When I bought stuff from the UK a few years ago, I was VAT excempt since it was not an internal UK sale.
One time I was over there and bought some stuff across the counter.
Needed to fill in a form saying it was for use overseas and the
shop put the form in with their VAT statement.
Assume same still applies.
AnswerID:
268199
Reply By: On Patrol (Aust.) - Wednesday, Oct 24, 2007 at 21:17
Wednesday, Oct 24, 2007 at 21:17
Gday howie
I bought some stuff in the UK & Germany that I had to pay tax on at the time of purchase as the retailers did not have tax free status. As I left each country I claimed the tax back at custom's before leaving.
I answer to your post you should not have to pay VAT in the UK as the item is not for local consumption. The same rule applies here for overseas buyers of Aust goods.
Colin.
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Reply By: Andrew from Vivid Adventures - Wednesday, Oct 24, 2007 at 22:48
Wednesday, Oct 24, 2007 at 22:48
You do not have to pay VAT in the UK for something exported to Australia (technically). Practically, you have to get someone to sell it to you without it, which can be difficult - they may have to complete a justification for selling without it.
When importing it, you are supposed to pay GST, but for items less than $1000 it is usually not levied - your mileage may vary.
If you are GST registered and it is 100% for business use, you can put the GST paid on your BAS statement. If you didn't pay any GST you don't put the GST on your BAS statement (surprise surprise).
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