• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 7/7/2014

Australia - Deferred GST on imports 

July 7: In Australian, goods and services tax (GST) is typically payable on importation of goods into Australia (the goods cannot clear Customs without payment of the GST).

A program known as the “deferred GST scheme” or DGS, allows deferral of the payment of GST on importation until the importer’s next Business Activity Statement (BAS). For many importers, this treatment provides a cash-flow benefit because it allows the GST on importation to be paid and claimed back at the same time, resulting in a net zero or nil payment.

To be eligible for the DGS, there are a number of requirements, including:

  • Filing (lodging) BAS monthly online and making payments electronically
  • 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) recently commenced active monitoring of this last requirement, which has resulted in the ATO issuing letters to taxpayers notifying them that their DGS status is being reviewed or revoked.

Read a July 2014 report prepared by the KPMG member firm in Australia: Deferred GST on imports at risk – don’t be late!

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