If you’re an Australian-based customer purchasing from us, you might be wondering why a 10% Goods and Services Tax (GST) is added to your order, even when you’re paying in US Dollars (USD). This is a common question, and we’re here to help explain in detail.
As a business registered for GST in Australia, we are legally obligated to charge GST on all transactions made by customers who are located within Australia. This applies regardless of whether the transaction is paid in Australian Dollars (AUD), US Dollars (USD), or any other currency.
GST Is Based on Customer Location, Not Currency
First and foremost, it’s important to understand that GST is a location-based tax, not a currency-based one. This means the tax is applied based on where the customer is located, not the type of currency used at checkout.
For example:
- If you’re based in Australia, GST is required—even if you’re paying in USD.
- If you’re located outside of Australia, GST will not be charged, regardless of the currency.
Why You’re Being Charged GST in USD Transactions
Many Australian customers ask:
“Why am I being charged GST even though the price is in USD?”
Here’s why:
Although we process transactions in US Dollars (as our store prices are listed in USD), Australian tax law still mandates that we collect 10% GST from all customers whose billing address is in Australia. The currency of the transaction does not matter—the law is clear that GST is calculated based on the value of the sale, no matter what currency that value is expressed in.
In short:
- 10% GST is still 10%, whether it’s on $100 AUD or $100 USD.
- After conversion to your local currency, the total amount will still reflect a 10% tax rate.
- The amount of GST is calculated and displayed clearly during checkout.
We’re Compliant With Australian Tax Regulations
As a GST-registered business, we are fully compliant with the requirements set by the Australian Taxation Office (ATO). This means we must:
- Identify and apply GST to all Australian-based transactions
- Clearly itemize GST on invoices and receipts
- Remit the GST we collect to the ATO as part of our regular tax obligations
By ensuring compliance, we maintain transparency and fairness in our billing practices while meeting our legal responsibilities.
Will You Receive a Tax Invoice?
Yes. For Australian customers, your receipt will include the 10% GST itemized so that you have a valid tax invoice for your records. This is especially helpful for Australian businesses who may be able to claim GST credits when lodging their Business Activity Statements (BAS).
What If You’re Not Sure About Your Tax Status?
If you’re unsure about whether GST applies to your situation or you’re trying to understand how to report GST for your business, we recommend speaking with a qualified tax accountant or advisor. While we’re happy to explain how GST works on our end, we can’t offer individual tax advice.
Summary
To recap, here’s why you’re being charged GST as an Australian customer:
- We are an Australian GST-registered company.
- GST applies to all purchases made by customers located in Australia, regardless of the transaction currency.
- 10% GST is calculated based on your location, not the currency you’re paying in.
- Your invoice will show the GST amount clearly for compliance and accounting purposes.
Need Further Help?
If you have questions about your purchase, invoice, or GST charges, feel free to contact our support team. We’re here to help ensure your buying experience is smooth and fully transparent.
For more official information on GST, visit the Australian Taxation Office (ATO).
