Australia

Details

  • Service: Tax, Indirect Tax
  • Type: Regulatory update
  • Date: 4/07/2014

Tax Insights

KPMG's analysis of tax issues and developments.

Alison Marshall

Alison Marshall
Director, Tax

+61 2 9335 7386

armarshall@kpmg.com.au

Deferred GST on imports at risk – don’t be late! 

by Alison Marshall, Indirect Tax Specialist

Ordinarily goods and services tax (GST) is payable on importation of goods into Australia (the goods cannot clear Customs without payment of the GST). The deferred GST scheme (DGS) allows you to defer the payment of GST on importation until your next Business Activity Statement (BAS). For many importers this is important for cash flow purposes as it allows the GST on importation to be paid and claimed back at the same time, resulting in a net nil payment.

To be eligible for the scheme, there are a number of requirements, including lodging BAS monthly online and making payments electronically. There is an additional requirement that the taxpayer and any members of the GST group, branches or joint ventures are up-to-date with their tax returns and payments. The Australian Taxation Office (ATO) has recently commenced active monitoring of this last requirement. This has resulted in the ATO issuing letters to taxpayers notifying them that their DGS status is being reviewed or revoked.

 

If you are currently approved for the DGS and have outstanding tax returns or payments, you should take steps to address this before the ATO issues a notice revoking your DGS status.

 

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