GST is payable on most goods imported into Australia (taxable importations).
GST on a taxable importation is payable by businesses whether they are registered for GST or not. However, if you are a GST-registered business and you import goods as part of your activities, you may be able to claim a GST credit for any GST you pay on those goods.
If this is the case, you should add the tax code named
Australia - GST on Imports.
When you record the purchase of goods from overseas, do not select a tax code.
This is because you will receive the GST bill from Customs that can be used to enter the GST paid. Use the original expense account to categorize the GST paid and select the
GST on Imports tax code.
After entering the $5,000 paid to your overseas supplier and $500 in GST to Customs, they will show on your GST Calculation Worksheet as follows:
Deferring the payment of GST on imported goods
If you are an importer and are registered for GST, you may be able to defer the payment of GST by participating in the deferred GST scheme. If you have been approved to participate in the deferred GST scheme, add the tax code named
Australia - GST 10% (Deferred).
When recording purchases from overseas that are subject to GST, select the
GST 10% (Deferred) tax code.
When you select the
GST 10% (Deferred) tax code the deferred GST will be shown under 7A of the GST Calculation Worksheet.