# How to code GST on imported goods, freight and customs bills

Split the bill line by line. International freight to Australia is usually GST-free. Import GST is claimed on your BAS using customs paperwork. Duty carries no GST. Broker and local charges usually carry 10% GST.

## Short answer

1. Split the forwarder's bill into its separate charges.
2. Code international freight GST-free and customs duty with no GST.
3. Treat import GST as a credit you claim on the BAS, backed by customs paperwork.
4. Code broker fees and local cartage with 10% GST when the bill charges it.

## Before you start

You need the freight forwarder's bill and the import declaration for the same shipment. Know whether you are on the deferred GST scheme. Ask your accountant which tax rate your Xero or MYOB file uses for import GST, because setups differ.

Where the rule is a tax rule, the ATO page is cited below. This guide is general information. Check with your accountant for your own file.

## The rules, from the ATO

- **GST on a taxable importation is 10% of its value.** The value is the customs value of the goods, plus customs duty, plus the cost of transport to the place of consignment in Australia, plus insurance for that transport, plus any wine tax ([ATO: GST and imported goods](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/international-transactions/gst-and-imported-goods)).
- **It can be deferred.** Eligible GST-registered importers may defer GST on taxable importations until the first activity statement after the goods are imported (same ATO page).
- **You claim in the right period.** You claim the credit in the activity statement for the period you pay the assessed GST. You need documents showing the goods were imported and the GST was paid or deferred. The ATO names Import Declaration N10 and N30, plus the Home Affairs official receipt (same ATO page).
- **No documents, no credit.** The ATO says you must not claim if you lack the documents or ready access to them (same ATO page).
- **International transport is GST-free to the place of consignment.** The ATO says inbound international transport, including arranging it, is GST-free from outside Australia to the place of consignment, and some handling services are GST-free too ([ATO: GST and international freight transport](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/international-transactions/gst-and-international-freight-transport)). That page was last updated in March 2016. Where the place of consignment is not the port, the answer can change, so ask your broker or accountant.

Charges that happen inside Australia, such as a broker's fee or local cartage, are outside those rules. They usually carry GST if the supplier is registered. Check what the tax invoice shows.

## The manual way in Xero

1. Go to Business > Bills to pay and choose New bill. Pick the freight forwarder as the supplier.
2. Add one line per charge. Do not enter one lump sum.
3. Code international freight to a freight-in or cost of goods account with a GST-free expense rate.
4. Code customs duty to your landed cost account with a no-GST rate such as BAS Excluded.
5. For the import GST line, ask your accountant which tax rate to use. Do not use GST on Expenses unless the bill itself is a tax invoice charging GST.
6. Code broker fees and cartage to expense accounts with GST on Expenses.
7. Check the bill total equals the forwarder's total, then save and approve.

Limits: Xero will not tell you which rate suits an import line. It does not hold the import declaration. If you use the deferred GST scheme, the BAS needs an extra step.

## The manual way in MYOB

MYOB's own help says the accounts, amounts and tax codes depend on the specifics of the overseas purchase. For deferred GST, MYOB's older AccountRight guidance describes a liability account and a separate entry for the deferred GST. Follow the current MYOB help article for your product, or ask your accountant.

## The Pulsify way

1. Forward the forwarder's bill to your Pulsify address.
2. Pulsify reads every printed line as its own line. It does not collapse the bill into one amount.
3. It codes each line with an account and a tax code, learned from how that supplier was coded in Xero or MYOB before. Later bills from that supplier follow the coding you set.
4. You check the flagged lines. You change a tax code if it is wrong, then approve.
5. The approved bill is created in Xero or MYOB with each line as coded.

Pulsify does not file your BAS and it does not hold your import declaration. Keep that with your broker.

## Worked example

Example Import Co receives a forwarder bill for $5,092.00 total:

| Line | Amount | Treatment |
|---|---|---|
| International freight | $2,840.00 | GST-free |
| Customs duty | $682.00 | No GST |
| Import GST paid on your behalf | $1,124.50 | Credit on BAS |
| Broker fee | $185.00 + $18.50 GST | 10% GST |
| Port and cartage | $220.00 + $22.00 GST | 10% GST |

The duty goes into landed cost. The $1,124.50 is not an expense. It is a credit you claim once you hold the import declaration. The $40.50 of GST on the broker and cartage lines is claimed from the forwarder's tax invoice.

## Common mistakes

- Coding the whole bill at GST on Expenses. This overclaims credits and hides the duty from landed cost.
- Claiming import GST on the forwarder's bill alone with no import declaration on file.
- Assuming all freight is GST-free. Freight inside Australia usually carries GST.

## Next step

Try an invoice at [app.pulsify.tech/sign-up](https://app.pulsify.tech/sign-up). Or [book a call](/contact/) to find out how customers have saved hours per week after switching.

Work out GST on a shipment with the free [customs duty and import GST calculator](/customs-duty-import-gst-calculator/). Add duty and freight to cost with the [landed cost calculator](/landed-cost-calculator/). See the longer blog post on [import GST and customs duties in AP coding](/blog/import-gst-and-customs-duties-ap-coding-australia/) and the [invoice checks guide](/guides/invoice-checks/).

## Common questions

### How much GST is payable on imports?

The ATO says GST is 10% of the value of the taxable importation. That value is the customs value plus customs duty plus transport to the place of consignment in Australia plus insurance for that transport, plus any wine tax.

### Can I claim GST credits on import GST?

Yes, if you make a taxable importation, you are registered for GST and you import for a creditable purpose. You claim in the period you pay the assessed GST, using the import declaration and Home Affairs receipt as evidence.

### What is the deferred GST scheme?

It lets eligible GST-registered importers defer payment of GST on taxable imports until their next activity statement. You must meet criteria and be approved. The ATO says it generally suits monthly BAS lodgers.

Source: https://www.pulsify.tech/how-to/code-gst-on-imported-goods-freight-and-customs-bills/ (last checked 2026-10-19)