ATI Service Sourcing

Tax Compliance in Cross-Border Trade

Importers operating under Australian law must ensure all transactions comply with ATO guidelines. Customs duties, port clearances, and GST calculations must be documented accurately on commercial invoices to support financial audits and tax filings.

How Import GST is Calculated

Unlike standard local transactions, import GST is calculated using the total Value of Taxable Importation (VoTI), which includes:

• Merchandise Customs Value (CV): The actual transaction price paid to the manufacturer under FOB terms.
• Import Customs Duty: Typically 5% of the Customs Value, unless the goods are ChAFTA tariff exempt.
• Transport & Insurance: The cost of shipping the cargo from the departure port to the Australian destination wharf.

Tax Invoicing Checklist for Importers

Verify that your commercial import invoices display the following details to ensure compliance:

1. Registered ABN: Displaying the supplier's active Australian Business Number , a registered Australian Pty Ltd entity.

2. Compliant GST Breakdown: Explicitly detailing the GST charged on the VoTI value to support input tax credit claims.

3. Itemised Details: Providing clear unit costs, customs duties, and ocean freight costs, supporting clear tax records.

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