Australian GST on dropshpping from overseas

Hi, my name is Michael Wanklin and i am new to the world of ecommerce. Like everyone I'm doing my homework before i start and have a quick question :D

When buying and selling in Australia you must pay GST. But, if i am importing from overseas and selling in Australia do i still have to pay GST?

Hi Michael, nice to have you on board.

In answer to your question, there is a $1,000 GST clear zone in Australia, so as long as your import is under 1K, no GST applicable.

Cheers

Thank you for your respon.

So that's per import? and even whilst dropshipping for someone?

Also it may make it a good idea to try importing drop sales rather than doing it all in Australia to avoid GST costs?

Hello and welcome Michael,

The charge is per importation. As for dropshipping, any additional tax will be charged to your customer directly and not through you since all dropshipped items will be delivered directly to your customer.

If you haven't, you might find this helpful - Link hidden: Login to view

Cheers!

Just to follow on from Richelle,

It may seem like a good idea to drop ship from outside of Australia to save on the GST, however I can only imagine most of the products you would be selling would come in under the 1K limit, and you would also need to consider delivery times to your customers.

It may well be that you have to use an international source for your products as one in Australia may not be available, however if one is, then you should take a look at the comparison across the board.

Of course, it's hard to even speculate without knowing the product, but if it sells for under a thousand bucks, it's hard to believe that the cost of shipping it to Australia one piece at a time represents any savings over paying GST on a load of that product -- quite the opposite, I would think. You might be able to exploit this as a means to be more price competitive, by saving on shipping enough to offset the GST bite and then pricing under your competition who is doing it one piece at a time.


Frank