Australia’s GST is a 10% tax on most goods, services, and imports. Registration is mandatory when annual turnover exceeds $75,000. Foreign companies must lodge Business Activity Statements (BAS) monthly or quarterly and may claim input tax credits on business purchases.
Last Updated: January 22, 2026
GST Compliance Guide for Foreign Companies in Australia
TLDR: Key Takeaways
- Registration Threshold: GST registration is mandatory when Australian GST turnover reaches or exceeds $75,000 in a 12-month period
- GST Rate: Australia applies a flat 10% GST on most goods and services
- Registration Timeline: You must register within 21 days of exceeding the threshold
- BAS Lodgement: Most foreign companies lodge quarterly; monthly lodgement required if turnover exceeds $20 million
- Input Tax Credits: Foreign businesses can claim back GST paid on Australian business purchases with valid tax invoices
- Imports: GST applies to most imported goods over $1,000; can be claimed as input tax credits
- Exports: Generally GST-free, but specific conditions must be met
- Penalties: Late BAS lodgement attracts penalties from $330 per 28-day period; shortfall penalties up to 75%
When GST Registration is Required for Foreign Companies
The Goods and Services Tax (GST) is Australia’s broad-based consumption tax of 10% that applies to most goods, services, and other items sold or consumed in Australia. Foreign companies operating in Australia must understand their GST obligations to ensure compliance with Australian tax law.
GST Registration Thresholds
| Entity Type | Annual GST Turnover Threshold | Registration Requirement |
|---|---|---|
| Standard business entities | $75,000 or more | Mandatory registration |
| Non-profit organisations | $150,000 or more | Mandatory registration |
| Taxi/ride-sharing services | Any amount ($1 or more) | Mandatory registration |
| Digital product/service suppliers (B2C) | $75,000 or more from Australian consumers | Mandatory registration |
| Businesses wanting fuel tax credits | Any amount | Must register to claim credits |
The 21-Day Registration Rule
Once your GST turnover reaches or is projected to exceed $75,000, you have exactly 21 days to register for GST. Failure to register within this timeframe can result in penalties and retrospective GST liability.
Voluntary GST Registration
Foreign companies with turnover below $75,000 may choose to register voluntarily if:
- Your customers are other GST-registered businesses who can claim back the GST you charge
- You have significant business expenses that include GST and want to claim input tax credits
- You expect to exceed the threshold soon and want to establish systems early
- Your industry expects suppliers to be GST-registered
How to Calculate GST Turnover
What is Included in GST Turnover
- Sales of goods delivered or collected in Australia
- Services performed in Australia
- Sales of goods located in Australia at the time of supply
- Digital products and services supplied to Australian consumers
- Rental income from Australian commercial property
What is Excluded from GST Turnover
- Input taxed supplies (such as financial supplies and residential rent)
- Supplies not connected with Australia
- Sales of capital assets (in most cases)
- Private sales unrelated to your business
GST Registration Process: Step-by-Step
- Step 1: Gather Required Documentation – Proof of identity for directors, Certificate of incorporation, ASIC registration certificate, Evidence of Australian business activities
- Step 2: Apply for ABN – Foreign companies need an ABN before registering for GST
- Step 3: Choose Your Accounting Method – Cash basis (under $2 million) or Accruals basis
- Step 4: Select Your Reporting Period – Monthly (over $20 million), Quarterly (default), or Annually (voluntary registration under $75,000)
- Step 5: Submit Your GST Registration – Online through Business Registration Service, through a tax agent, or by phone
- Step 6: Receive Confirmation – Start charging GST and claiming input tax credits from registration date
BAS Lodgement Requirements
BAS Lodgement Frequencies
| Lodgement Frequency | Eligibility | Due Dates |
|---|---|---|
| Monthly | Mandatory for GST turnover over $20 million | 21st of the following month |
| Quarterly | Default for most businesses | 28th of the month following quarter end |
| Annually | Voluntarily registered businesses under $75,000 | 31 October (with annual tax return) |
Quarterly BAS Due Dates 2026
- Q1 (Jul-Sep): Due 28 October 2026
- Q2 (Oct-Dec): Due 28 February 2027
- Q3 (Jan-Mar): Due 28 April 2027
- Q4 (Apr-Jun): Due 28 July 2027
Simpler BAS Reporting
Businesses with GST turnover under $10 million can use Simpler BAS with just three fields: G1 (Total sales), 1A (GST on sales), 1B (GST on purchases).
Input Tax Credits for Foreign Businesses
Eligibility for Input Tax Credits
You can claim an input tax credit if:
- You are registered for GST (or required to be registered)
- The purchase was for business use (not private purposes)
- The purchase is not related to making input taxed supplies
- You hold a valid tax invoice (for purchases over $82.50 including GST)
- The supplier actually charged you GST
Common Business Expenses Eligible for ITCs
| Expense Type | ITC Claimable? | Notes |
|---|---|---|
| Office rent (commercial) | Yes | Landlord must be GST-registered |
| Professional services (accounting, legal) | Yes | With valid tax invoice |
| Office supplies and equipment | Yes | For business use only |
| Business travel within Australia | Yes | Accommodation, transport, meals |
| Imported goods (GST paid at customs) | Yes | Using import documentation |
| Entertainment expenses | Generally No | Most entertainment is not claimable |
| Residential rent | No | Input taxed supply |
Special Rules for Imports and Exports
GST on Imported Goods
| Customs Value | GST Treatment | Collection Method |
|---|---|---|
| Over $1,000 | GST payable at 10% | Collected by Australian Border Force at import |
| $1,000 or less | GST payable at 10% | Generally collected by overseas supplier or platform |
| GST-free goods | No GST payable | N/A |
GST on Exported Goods
Exports from Australia are generally GST-free. Conditions that must be met:
- Goods must be exported within 60 days of the earlier of payment or invoice date
- Services must be provided to a non-resident who is not in Australia when performed
- You must maintain export documentation as evidence
Common GST Compliance Mistakes
- Failing to Register on Time – Missing the 21-day registration deadline
- Incorrectly Calculating GST Turnover – Including or excluding wrong items
- Claiming ITCs Without Valid Tax Invoices – Requiring valid invoices for purchases over $82.50
- Incorrect Treatment of Exports – Assuming all international transactions are GST-free
- Mixing Personal and Business Expenses – Overclaiming on mixed-use expenses
- Late BAS Lodgement – Missing deadline triggers automatic penalties
- Poor Record Keeping – Failing to maintain records for 5 years
Penalties for Non-Compliance
Failure to Lodge Penalty Rates (2026)
| Entity Size | Penalty Per 28-Day Period | Maximum Penalty (5 periods) |
|---|---|---|
| Small entity (under $1 million) | $330 | $1,565 |
| Medium entity ($1m – $20m) | $626 | $3,130 |
| Large entity (over $20 million) | $1,565 | $7,825 |
Shortfall Penalties
| Behaviour | Base Penalty Rate |
|---|---|
| Lack of reasonable care | 25% of shortfall |
| Recklessness | 50% of shortfall |
| Intentional disregard | 75% of shortfall |
Criminal Penalties for GST Fraud
Deliberate fraud includes substantial financial penalties, imprisonment of up to 10 years, and director liability provisions.
Frequently Asked Questions
Do foreign companies need an ABN to register for GST?
Generally yes. Foreign companies registered with ASIC, having an Australian subsidiary, or carrying on an enterprise in Australia need an ABN for standard GST. Foreign businesses supplying only digital products to Australian consumers may use simplified GST registration without an ABN.
Can a foreign company claim GST refunds if they have no Australian sales?
If your foreign company has no Australian sales and is not registered for GST, you generally cannot claim input tax credits. Certain diplomatic entities may be eligible for GST refunds under specific provisions.
What is the reverse charge mechanism?
The reverse charge mechanism requires the Australian purchaser (rather than the overseas supplier) to account for GST on certain imported services and intangibles. The Australian business includes the GST on their BAS and can generally claim it back as an input tax credit.
Can I backdate my GST registration?
Yes, you can request to backdate your GST registration for up to 4 years. This allows you to claim input tax credits for GST paid on business purchases during the backdated period, but you’ll also need to account for GST on taxable supplies during this time.
How do I cancel my GST registration if my business leaves Australia?
You can cancel your GST registration if you stop carrying on an enterprise in Australia or your turnover falls below $75,000. Cancellation must be done within 21 days of becoming ineligible. Contact the ATO or lodge through the Business Registration Service.
Related Services
- ABN & GST Registration Services – Professional assistance with Australian Business Number and GST registration
- Taxation Services – BAS preparation, annual tax returns, and tax advisory
- Bookkeeping Services – GST tracking, reconciliation, and BAS-ready financial reports
Need Help with GST Compliance?
Navigating Australian GST requirements as a foreign company can be complex. Our team of experienced professionals can help you register for GST, lodge your BAS on time, and ensure full compliance with ATO requirements.
Contact Us for Expert GST Advice
Related Guides
- Foreign Company Registration Complete Guide
- Transfer Pricing Guide for Australia
- ASIC Compliance Calendar 2026