GST collection on orders to Australia

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In order to comply with new legislation by the Australian government, HobbyLink Japan will begin collecting Goods and Services Tax of 10% on the cost of items being shipped to Australia beginning Sunday, July 1st 2018 AEST.

Q. Why is HLJ collecting GST?

A. Changes to Australian policy now mean that international businesses must collect GST on purchases under $1,000 AUD being shipped to Australia. We must then pay this tax to the Australian government. If we do not collect this tax on orders to Australia, there’s a risk your packages will be rejected by customs without being delivered to you.

Q. Can I see how much GST I will be charged before I pay? 

A. GST will amount to 10% of the total value of merchandise in your order (shipping costs are excluded). An “Estimated tax to be collected” amount will be shown in the checkout when you place your order, as in the screenshot below.


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Q. When will I be charged GST? 

A. GST will be applied to your order when it enters payment processing. At that time, the GST amount for all of the items in your processing order will be calculated, and GST will be charged to you in one transaction, together with the merchandise cost of the items.

Q. Will I be charged GST for shipping costs?

A. No. GST will only be applied to the cost of items. 

Q. Will GST be shown on my invoice? 

A. Yes. This should help ensure your packages pass through Australian customs quickly and without any problems. 

Q. Where can I find more information on this? 

A. The Australian Tax Office guidelines on this legislation can be found on their website here: https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/ , and they can be contacted for more details by any of the channels listed here: https://www.ato.gov.au/About-ATO/About-us/Contact-us/

You're also welcome to contact us with any questions.

 

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