GST (Goods and Services Tax)
Consumption tax similar to VAT, used in Australia, Canada, and others.
Definition
GST (Goods and Services Tax) is a consumption tax equivalent to VAT, used in countries including Australia (10%), Canada (5% federal), New Zealand (15%), India (various rates), and Singapore (9%). For imports, GST is charged on the customs value plus any duties, similar to VAT. The calculation and recovery rules parallel VAT systems. Some countries have both GST and provincial/state sales taxes that apply to imports.
Why It Matters
GST adds to your import costs just like VAT. Even at lower rates (10% in Australia vs 20% UK VAT), it's a significant expense. For businesses, GST is typically recoverable through tax credits. For consumers and non-registered businesses, it's an outright cost that must be included in landed cost calculations.
Example
Importing to Australia: Goods $500, shipping $100, insurance $20 (CIF = $620). Duty at 5% = $31. GST at 10% on (CIF + duty) = ($620 + $31) × 10% = $65.10. Total charges: $96.10.
Landed Cost Calculator
Estimate total import costs including duty, tax, and shipping fees.
Related Terms
Frequently Asked Questions
What's the difference between GST and VAT?
Functionally, they're the same—both are consumption taxes on goods and services. Different countries use different names. GST is common in Commonwealth countries (Australia, Canada, NZ) while VAT is used in the UK and EU.
Related Resources
What is Landed Cost?
Complete guide to import duty and tax
ToolLanded Cost Calculator
Estimate import duty, tax, and total cost
DefinitionVAT (Value Added Tax)
Consumption tax charged on imports in many countries.
DefinitionImport Duty
Tax charged by customs on imported goods.
DefinitionCustoms Value
The value used by customs to calculate import duties.