GST on International Sales: Exports & Imports

One of the best things about ecommerce is the ability to sell to the world. But selling globally introduces complex GST rules. Do you charge GST to a customer in New York? What about London?

Exports are GST-Free

The general rule for Australian businesses is simple: Exports are GST-Free.

If you ship a physical product from Australia to a customer overseas, you do not charge the 10% Australian GST. This makes your pricing more competitive globally.

The 60-Day Rule

To claim this GST-free status, you must export the goods within 60 days of receiving payment or issuing the invoice. You must also keep proof of export (e.g., Australia Post tracking numbers or DHL shipping manifests) in case of an ATO audit.

Importing Stock (The Reverse Charge)

When you import stock from suppliers in China or India, the rules change.

• Over $1,000: If the shipment value is over AUD $1,000, Customs will charge you 10% GST on the value of the goods + duty + shipping at the border. You cannot pick up your goods until this is paid.
• Claiming it Back: This GST is not a "cost." It is a tax credit. You claim it back on your next BAS (Business Activity Statement). Ensure you keep the import documents from the freight forwarder to verify this claim.
• Under $1,000: Low-value imports generally do not trigger GST at the border, but foreign suppliers might charge you GST if they are registered in Australia.