Imported goods: reconcile customs GST and supplier bills

Start with the customs import declaration for the shipment. Low-value goods charged through a marketplace and deferred-GST arrangements need additional checks. Start a folder under the shipment reference before allocating the bank payments.

Collect the documents behind the shipment

Keep the commercial invoice, currency and payment terms, shipping documents, customs declaration, import-GST payment evidence and the broker or freight forwarder's itemised bill. Add the contract or purchase order identifying who imported the goods and for what purpose.

An invoice from an overseas supplier may not contain the Australian import GST paid at customs. Conversely, a freight bill may repeat a customs disbursement already recorded from the declaration. The ATO international-transactions guide explains the importer and credit requirements.

1. Supplier invoice

Goods and the contractual buyer. Record currency, price and payment; do not invent Australian GST on a foreign invoice.

2. Import declaration

Importer details, customs value and import GST. Link the declaration and evidence of payment or approved deferral.

3. Freight or broker bill

Separate its own services from duty, import GST and other disbursements. Match each repeated customs amount to document 2.

All three records describe parts of one shipment. A repeated amount is not a second entitlement. Original ASBG diagram with a complete text equivalent in each step; fictional examples.

Reconcile one ordinary example

Fictional example: the business is the eligible importer, the goods are wholly for a creditable purpose and import GST has been paid. The amounts below are assumed document values, not a formula for calculating customs value. Customs value can differ from the supplier price and can include other components.

Record	Gross or recorded amount	GST evidence	Avoid this duplication
Overseas goods invoice	$5,000 AUD equivalent	No Australian GST on this invoice	Do not calculate a $454.55 credit from $5,000
Customs declaration	Import GST paid: $600	Declaration and payment evidence	Record this $600 once
Broker bill: customs disbursement	$600 reimbursed to broker	Same declaration reference IMP-31	Do not claim a second $600
Broker’s separate local service	$220 including $20 GST	Valid service tax invoice	Keep distinct from import GST
Total supported GST in this example	$620	$600 import GST + $20 service GST	Subject to importer, use and timing assumptions

The worksheet does not calculate duty, customs value, landed cost or eligibility for a real shipment. Original ASBG worksheet; all example figures are fictional.

In these circumstances the bill's $600 disbursement settles or reimburses an amount already supported by the customs record. It isn't another purchase with another $600 of GST. Ask the bookkeeper how the customs entry and broker payable should connect in your file so liabilities also settle correctly.

Check that your business is the claimant

Paying a freight bill doesn't by itself establish that your business is the importer entitled to the credit. The ATO explains that appearing as "owner" on a declaration is not always sufficient either. The role of the entity causing the importation, use of the goods and any genuine agency arrangement matter.

If a supplier imports goods and then sells them to you locally, your supporting document may be its local supply invoice rather than a claim by you for its customs GST. If an agent appears on the declaration, retain evidence of the agency and importation on your behalf. Have the agent and accountant resolve an identity mismatch before including a credit.

Separate timing from eligibility

Import-GST payment timing and an approved deferred-GST scheme affect the reporting trail. Don't apply ordinary supplier-invoice timing to customs amounts without checking the import rules. Deferred GST also needs reconciliation to the ATO's prefilled or reported amount; an apparent cash payment may relate to different charges.

Keep imports in a register showing declaration number, importer, entry date, GST payment or deferral, service invoices, claim period and reviewer decision. For a mixed-use shipment, review the extent of creditable use instead of claiming the whole figure from the declaration.

Continue with the next question

• GST on overseas software: check the subscription invoice
• Foreign-currency invoices: keep the AUD GST conversion trail

Key takeaways

• Match the three document sets by shipment and declaration reference.
• Count import GST once when it is repeated on a broker bill.
• Confirm importer identity, use and timing before including a credit.

Where to get help

Ask the customs broker about the declaration and a registered tax agent about entitlement and BAS treatment. Keep the records under your record-keeping routine; the Bookkeeping and BAS hub links related purchase checks.