GST on importation

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Here are some tips I’ve developed to enter purchase invoices for bills from customs broker/international freight forwarders. This applied to goods where an import duty is payable.

  1. enter a new purchase invoice and tick “amount are tax inclusive”
  2. add the GST free customs value of goods, transport and insurance and import duty and enter the sum as a negative : GST free. (duty is a percentage of the customs value of the goods and varies depending on what you are importing).
  3. on the next line add 1.1 times the above as a positive : GST 10%. The difference between 1 and 2 is the GST on imported goods, payable immediately if you want your goods off the dock. Yep, you pay GST on the duty.
  4. on the next line add the customs duty : GST free. (GST already paid above)
  5. on the next line add the customs user fee : GST free.
  6. on the next line add overseas air/sea freight : GST free.
  7. on the next line add port charges, shipping and quarantine attendance, profession fees and ICS communications fess : GST 10%

Cheers.