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  • Sharon Climo

GST on overseas purchases

Are you purchasing products and services from overseas suppliers for your business?

Here's some important information about GST (Goods and Services Tax) that you need to know. GST is charged on certain transactions in Australia, but not always on overseas purchases. Overseas businesses must register for GST in Australia if their sales connected with Australia exceed $75,000. Many large online retailers are registered and charge GST, which you can claim on your BAS (Business Activity Statement). However, smaller or independent online businesses might not be required to register for GST in Australia, meaning they don't include it in their invoices. A common mistake is claiming GST on the BAS for all purchases, even those from overseas suppliers that don't charge GST. To avoid this error, here's what you can do: Check the supplier's registration at ABN Lookup.

If they have an ABN, it will indicate whether they are registered to charge GST.

Review the supplier's invoice to see if GST has been included. If not, it's a GST-free purchase for your BAS.

If the business doesn't have an ABN and isn't registered for GST, you won't find them on the ABN Lookup.

If you're unsure about GST on your overseas business purchases, getting your BAS reviewed is a smart move. We can also ensure that your accounting software is set up correctly for accurate coding of purchases.

Don't hesitate to reach out to us today to arrange a review of your business accounts before you complete your next Business Activity Statement.

We're happy to help.

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