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Tax rates for Australian store (but shipping worldwide from USA)
 
liquid2g
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Total Posts:  52
Joined:  2009-04-04
 

Hi guys,

I’m setting up a store that will be selling t-shirts worldwide.

My business is based and registered in Australia, but all of my products will be sent from a fulfillment/shipping center in the USA.

In terms of setting up Tax in Magento, should I charge a flat 10% GST on everything?
Or am I required to tax according to where the buyer is from? eg. if the buyer was from California, would I have to add California state tax as well as GST?

I’ve been having a look around the forums but am finding it very tricky to find a clear answer on this one.

Hope someone can help!

thanks in advance
Luke

 
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Vee_
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Total Posts:  46
Joined:  2008-07-07
Western Australia
 

I would suggest talking to your accountant or even the ATO - advice from the ATO is free.

 
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NeilA
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Joined:  2007-09-17
Blue Mountains, Oz
 

I second Vee’s suggestion. I wouldn’t base important financial decisions for my online business on advice here - no matter how sincere!  wink

 
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shueardm
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Total Posts:  19
Joined:  2009-04-04
Adelaide - South Australia
 

It’s a simple answer really.
Anything you sell to a location within Australia must attract 10% gst
All sales that go offshore are GST free - no TAX

However. You must keep records of shipping consignment notes etc to be able to prove that they were sold O/S.

 
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