If you use drop shipping for your business, GST will apply to sales of low value imported goods valued at $1,000 or less.
‘Drop shipping’ refers to the sale of goods located overseas at the time of the sale and sent directly to consumers in Australia from an overseas source, such as the manufacturer, wholesaler or warehouse.
Australian retailers should treat these sales the same as other domestic sales and apply GST at the point of sale.
Imported goods valued above $1,000, as well as all tobacco products and alcoholic beverages, continue to have GST applied at the Australian border.
Australian suppliers not registered for GST must include drop shipping sales when working out if they need to register. You must register for GST if your turnover is $75,000 or more in a 12-month period.
Source: ATO
