We collect GST (Goods and Services Tax) for Australian brands operating on our platform, to allow them to comply with your local reporting obligations as required. GST may be applied to orders placed with brands through our platform depending on their ship-from location.
As an Australian retailer, you may place two different types of orders on Faire:
- Domestic orders: When a brand in Australia ships an order within Australia
- International orders: When a brand outside of Australia ships goods to Australia , for example, a brand ships goods from the US to Australia
Domestic orders
For any products shipped domestically by a GST-registered brand, we will collect GST from you at checkout. The standard rate of GST (10%) is added to your invoice, and will be reflected on the brand’s order invoice and payout summary.
Here’s where you’ll see any collected GST on your invoice:
International orders
For orders that are shipped to Australia from outside of Australia , generally GST will not be charged by Faire. We’ll provide an estimate for duties and taxes at the checkout, and the final tax amount will be determined and charged by the customs agency upon import.
Value of goods exceeds AUD $1,000:
GST will be payable at the time of importation by the retailer when the order is more than A$1000. The carrier used by the brand may recover any customs duties and import GST payable at the border when completing delivery of the goods. Check out our article: Importing to Australia for more information.
If you are GST-registered, you can generally reclaim the import GST incurred in the same way you reclaim GST for domestic orders via the lodgement of your GST return.
Value of goods does not exceed AUD $1,000:
For certain orders with a value equal to, or less than, A$1000, Faire will be the deemed supplier of the goods under the GST rules in accordance with section 84-55 and subsection 84-81(3) of the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
Where this arises, Faire will collect the GST payable on the order at check-out and remit this to the Australian Taxation Office (ATO). However, if you as a retailer hold an ABN and are GST-registered, we will collect this information from you at onboarding, and again at checkout, and GST will not be imposed on the supply.
Therefore, for Low Value Goods (LVGs), the GST implications for retailers will generally be as follows:
- If you are GST-registered, GST will not apply to LVGs that you will use in your business in Australia. For Faire to not charge GST as the platform operator, you will need to provide your ABN and state that you are GST-registered at the time of onboarding, and again at checkout; or
- If you are not GST-registered, GST will apply to the low value imported goods.
Please note that the ATO can impose penalties on retailers if they provide false information to Faire as the platform, such as indicating they are GST-registered when this is not the case.
What happens if an order consists of multiple items exceeding A$1,000 but each individual item is less than A$1,000?
If you, as a non-GST registered retailer, purchase a number of low value goods (Ex: each item is under A$1000 in value) that are shipped to Australia as one consignment, yet with a total customs value of over A$1000, the order will be subject to import GST and so will be taxed at the customs border, rather than at checkout.
For more information on GST implications for your business, consult your tax advisor.
What if the products in my order are Tax Exempt?
At this time, our system cannot mark products as GST exempt. We apologize for the inconvenience. We understand that there is no GST charged on certain items. We are working on an update to this and will hopefully have this resolved in the future.
That said, if you would like help with any other orders that may have this issue, please reach out to our support team and provide any relevant order numbers and we’ll be happy to look into this for you.