What is Deferred GST?
Deferred GST refers to the scheme introduced by the Australian Tax Office. Therefore, if you are a registered importer for goods and services tax (GST), you can delay payments of GST on taxable imports.
DGST & Freight Forwarders?
When you enter the DGST Scheme, your freight forwarder is notified. The invoice you receive will exclude GST for goods imported into Australia. Moreover, the client must lodge their BAS every month to participate in the scheme.
The FTA & DGST
The Freight & Trade Alliance recently sent out a notice to inform members of the scheme and its benefits for importers. It encourages members to introduce the opportunity to clients, the FTA’s newsletter highlights the application end date of July 31, 2020. Further, the newsletter promotes the advantages of applying for the scheme in the first quarter of the new financial year, especially if organisations report quarterly.
The ATO has seen a high volume of applications, which were subsequently approved. However, they are communicating the benefits of the DGST Scheme to the FTA and are encouraging organisations to apply. For more information, visit the Australian Tax Office website to learn more: https://bit.ly/3eNtpYE