How to avoid GST on overseas purchases?

Asked by: Prof. Kurtis Williamson  |  Last update: August 1, 2026
Score: 4.6/5 (73 votes)

To avoid GST on overseas purchases, you generally need to stay under your country's duty-free threshold (e.g., $400 in Singapore, $800 in California for hand-carried items), declare goods when arriving, use personal allowances, or ensure goods qualify for specific exemptions like certain investment metals, but trying to evade declared taxes on high-value items is illegal and can lead to fines, especially for online purchases where thresholds apply to the combined cost of items, shipping, and insurance (CIF).

Do I have to pay GST for overseas purchases?

GST is applicable on all items brought into Singapore regardless of whether foreign sales tax was paid for the item overseas, and regardless of whether the traveller has claimed a tax refund for the item abroad.

How do I avoid 9 GST at customs?

All goods brought into Singapore are subject to goods and services tax, currently pegged at 9 per cent. However, travellers are granted GST import relief based on the duration of their trip. For those who have been overseas for 48 hours or more, they are entitled to GST relief of up to $500.

Do you pay GST on goods purchased overseas?

The GST payable is 10% of the value of the taxable importation. The value of taxable importation is the sum of: the customs value of the goods. any customs duty payable.

How to get GST exemption?

Small and medium-scale businesses can benefit from GST exemptions based on their aggregate turnover: If the aggregate turnover of a company or individual supplying goods is less than INR 40 lakhs (INR 20 lakhs in certain hilly and northeastern states), they can claim a GST exemption.

GST on Imports

20 related questions found

What qualifies for GST exemption?

The GST/HST break includes certain qualifying goods, such as:

  • Food.
  • Beverages.
  • Children's clothing and footwear.
  • Children's diapers.
  • Children's car seats.
  • Certain children's toys.
  • Jigsaw puzzles.
  • Video game consoles, controllers, and physical video games.

How to get GST waived off?

Steps to Apply for the GST Waiver

Here's a simplified breakdown of the process under Section 128A: File an Application on the GST Portal: Apply electronically using FORM GST SPL-01 for non-fraudulent notices or FORM GST SPL-02 for certain orders. Include details of the tax payments made using FORM GST DRC-03.

How much GST do I pay on overseas purchases?

GST of 15% applies to all imported items or gifts, including anything you bought online. Overseas suppliers may charge GST on items sent to you that are valued at NZ$1000 or less. Customs will calculate GST based on the total of: how much you paid for the item, plus.

Do I have to pay tax on items bought overseas?

The first $800 of goods that are purchased from a retailer in a foreign country by an individual and personally hand–carried into this state from the foreign country within any 30-day period is exempt from use tax. This exemption does not apply to goods sent or shipped to California.

Is GST applicable on international purchases?

Buying & selling foreign currencies, sending remittances overseas (for instance, gifts or education fees), or loading your forex travel card via any bank or authorised dealer—on all such services, GST shall be applicable.

Do I need to declare luxury bags?

In a word, yes. Declaring luxury goods to US Customs is always a good idea. All of your purchases abroad are subject to declaration by US Customs, and luxury goods have the highest likelihood of being inspected.

Which items are exempted from GST?

Cereals, edible fruits and vegetables (not frozen or processed), edible roots and tubers, fish and meat (not packaged or processed), tender coconut, jaggery, tea leaves (not processed), coffee beans (not roasted), seeds, ginger, turmeric, betel leaves, papad, flour, curd, lassi, buttermilk, milk, and aquatic feeds, and ...

What happens if I accidentally forget to declare goods?

If you didn't declare something, and an officer finds it in your luggage or on your person, they can take it away from you. Sometimes that's the end of it – you lose the item forever (it's confiscated and usually destroyed or auctioned off if it's legal goods).

How do I avoid customs fees?

Here are 7 of the best ways to do just that—and start taking control of your importing expenses.

  1. Use the Correct HTS Codes. ...
  2. Leverage Free Trade Agreements (FTAs) ...
  3. Apply the First Sale Rule. ...
  4. Claim Duty Drawback. ...
  5. Consider Foreign-Trade Zones (FTZs) ...
  6. Implement Tariff Engineering. ...
  7. Maintain Strict Compliance to Avoid Penalties.

How much GST for international transactions?

* Any handling charges/delivery charges are separately liable to TAX (GST) at 18%.

Do I have to declare clothes at customs?

For Customs purposes, clothing, jewelry, photography equipment, portable radios, and vehicles are considered personal effects and cannot be brought in duty-free as household effects. However, duty is usually waived on personal effects more than one year of age. All vehicles are dutiable.

Do I pay GST on imported goods under $1000?

For goods imported into Australia under A$1,000, GST (Goods and Services Tax) is generally charged at the point of sale by the overseas seller or online marketplace, not at the border, under Australia's Low Value Imported Goods (LVIG) rules https://sellercentral.amazon.com/help/hub/reference/external/G4BBHW7XBNS2GMWU,. This 10% GST applies to most retail sales to Australian consumers, with exceptions for certain items like alcohol or tobacco, which always attract duties/taxes regardless of value, and business purchases.

Can I refuse to pay customs charges?

Packages requiring the payment of duties, taxes, and other government-related charges will be assessed an additional fee of $12 USD if those duties are not paid prior to delivery.

Which goods are exempted from customs duty?

Items exempt from customs duty vary by country but generally include personal effects (used household goods, clothing), specific relief/aid goods (disaster relief, medical supplies), educational/cultural items, samples for trade shows, and sometimes low-value gifts or specific categories like certain machinery or basic groceries, often with conditions or value limits, like the U.S. $800 traveler exemption or de minimis rules for small packages (though these can change). 

Do I have to pay GST on overseas online purchases?

Understanding Singapore's GST on Overseas Purchases

GST is levied on all goods brought into Singapore, including items you buy when you're abroad, or order online. Failing to report dutiable goods, and pay any relevant GST is illegal and can result in fines or even prosecution.

How to get GST refund on imported goods?

You have to file refund application in Form GST RFD-01 at GST Portal. You can file for refund of multiple tax periods in one refund application. 2. You have to provide turnover of Zero-Rated supplies and Adjusted Total Turnover for the period refund is sought for.

Is there any way to avoid GST?

Claim the GST Refunds

If the SMB is exporting goods or services or providing them to SEZ, or if the SMB has accumulated ITC as a result of the inverted duty structure, the SMB may submit a refund application with the GST Department and claim the refund.

Can tourists claim GST back?

The Australian Government's Tourist Refund Scheme (TRS) allows international travellers to claim a refund on the Goods and Services Tax (GST) and Wine Equalisation Tax (WET). The government pays this on eligible purchases you make in Australia and take offshore when you meet certain conditions.

How do I remove 18% GST from my total amount?

Example

  1. GST Amount = ₹1,180 - (₹1,180 / (1 + (18/100))) = ₹180.
  2. Amount Excluding GST = ₹1,180 - ₹180 = ₹1,000.