When shipping a Low Value Imported Good or LVIG from outside Australia to a customer in Australia, you need to include the following on your customs documentation:
This information will be required by your carrier to be able to import your shipments into Australia. Items dispatched from outside of Australia that do not include the required customs documentation and that have not had GST collected, may be held up at customs and may be seized, incur delays or be subject to fines or other consequences. In addition, if the customer does not receive their order, you may not be paid for the sale.
Items that have a customs value of $1,000 AU or less are considered LVIG. The customs value is calculated considering the product price without GST, or any delivery or packaging charges.
Nevertheless, please note that the GST will be calculated on the product price including delivery and packaging charges.
You must set up product prices, delivery and packaging charges inclusive of GST.
Example. A product has a seller set price of $1,100.00 AU (GST Inclusive) and a delivery charge of $5.50 AU (GST Inclusive).
Firstly, in order to determine whether the product is LVIG, we must calculate the customs value by removing the GST from the product price and ignoring the delivery charge.
($1,100/1.1) = $1,000
If the customs value of the product without GST is $1,000 AU or less, the product is LVIG subject to LVIG GST (see Frequently asked questions on Low Value Imports GST). If the customs value is greater than $1,000 AU, the product is not LVIG. Whilst LVIG GST will not apply, other duties and import charges apply to products over $1,000 AU, and other documentation and information will be required.
Secondly, in order to calculate the GST payable on the product, we need to divide the total amount payable by the customer (i.e. product price plus delivery charges by 11:
($1,105.50/11) = $100.50