VAT Rate in Australia.

Updated on May 11, 2022

Does your company import products or are you gearing up for an international trip? Learn how to take advantage of lower VAT rates.

How much is VAT in Australia?

GST (products and services tax) is a 10 percent tax on most goods and services in Australia. With a few exceptions, it applies to the majority of goods and services. Basic meals, medical and healthcare services, and educational courses all fall into this category.


What is a VAT rate?

Consumers are subject to VAT (value added tax), which is a consumption tax. When it comes to the sale of products and services, the Australian government has made it mandatory.

Instead of being a direct tax paid by businesses, VAT is levied on consumers and collected by businesses as an indirect tax. In this case, the business is then accountable for submitting the information to the authorities.


How to work out VAT in Australia.

VAT is included in the final pricing.
Multiply the original price by 1.1 to get the final cost, which includes VAT at the regular rate of 10%.

Tax not included in total pricing
By multiplying the original price by 1.1, you can determine the total price excluding the typical VAT rate of 10%.

Choose a country to find its VAT rates.



VAT for businesses.

A few things you need to know about VAT if you are running a business.

What is VAT, and how does it work?

Purchasing items from other countries? Find a less expensive option.

Calculate your VAT here if you’re curious about the process.

Wise is the cheaper way to send money abroad.

In terms of trade, are you exporting or import? Invoice payments and international purchases can be done more cheaply with Wise Business. As a result of our low, upfront fee, you’ll never have to worry about being charged an unjust exchange rate from us.

Plus, you can make purchases like a local no matter where you are with the Wise Business debit card.

More information can be found on the website for Wise Business.

Now is the time to sign up for free and conduct international commerce.



How does VAT work?

Every time value is added to a product and a sale is made, VAT is collected. Value-added tax is what gives VAT its name. It’s meant to be paid for at the end by the customer. Here’s a case in point:

A badminton racquet costs A$120 from a supplier to a store. They owe the government A$20 in VAT.
As a result, the shop just has to pay A$120 rather than A$120 plus VAT.
The racket is sold to the buyer for A$220 by the retailer. The customer, as the final consumer, is responsible for paying the entire A$44 in VAT to the store.
The shop will be required to pay the government A$24 in total, including the A$20 VAT that can be reclaimed.

Tax-free shopping – VAT for travellers.

So, you’ve done some international shopping and paid a hefty VAT fee. On the bright side, refunds are frequently available once you’ve arrived back home.

VAT refunds are available to European Union residents who shop at a tax-free retailer in Singapore.

Every country’s VAT refund rules are different and should be examined before you travel, since there are normally a minimum purchase value and some exceptions to be aware of.

Have a peek at these countries’ tax-free shopping policies if you’re planning a trip there. The Wise travel money card is a great way to save even more money, so don’t forget to use it when shopping or shopping online.



VAT Refund.

GST can be refunded on purchases made while visiting Australia if the following conditions are met:

At least A$300 has been spent in tax-free stores on the same day.
It is possible to receive the refund in a variety of ways, including at a refund station at the airport, via mail, or even by phone.

How to get a VAT refund in 3 simple steps?

Fill out this form to begin the process.
The store should be able to provide you with an application for a refund of your sales tax. To make sure you’re eligible, you may be requested to present your passport.

Customs checks
Passport, VAT form(s), VAT invoice(s), and tax-free products must all be shown to customs when entering or leaving the country.

Approved refunds should be returned.
Customs will accept your paperwork if it meets all of the requirements. You’ll receive a signed document authorising the reimbursement.