Hi.
I ordered some electronics parts costing $70.90 for testing and evaluation from Digikey. It is only recently Digikey has asked when you order electronic parts, "Are these goods to be on-sold to someone else?" I was not charged the $7.09 GST (ie: 10%) as these were not originally intended to be on-sold. However later on I did charge the client, so I needed to pay GST. I contacted Digikey who subsequently charged me the GST. Fine, no problem.
My understanding is if I import electronic goods under $1000 for the business, I don't need pay GST; but if I on-sell the goods, GST is payable. (So, what happens if I on-sell half of the goods, eh?) But if I am a consumer, GST is payable in all cases. So if I import a $900 oscilloscope it can be completely GST free if it is used solely for the business. If it is used for both business and personal use, that would complicate things.
I did ask the Australian Taxation Office for clarification on this GST. The bloke at the ATO seems confused about the GST. He literally said if the foreign company does not have an office or registered business in Australia, GST is not payable. I believe he is wrong... Wrong... WRONG!
Maybe other Aussies here know more than the ATO and I on GST when importing electronics for a business. Am I right, or is this bloke from the ATO right?
Admittedly, Australia has the reputedly the world's most complex taxation system thanks to successive bureaucratic governments making a bigger mess whenever they try to simplify things. As they say, you can't have your cake and eat it too! This famous interview about the GST on a birthday cake was the nail in the coffin regarding the interviewee's hope as becoming Prime Minister...