{"id":18577,"date":"2025-01-27T20:42:22","date_gmt":"2025-01-27T20:42:22","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/gst-meaning\/"},"modified":"2025-09-12T00:03:33","modified_gmt":"2025-09-12T00:03:33","slug":"gst-meaning","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/gst-meaning\/","title":{"rendered":"What Ecommerce Businesses Need to Know About Goods and Services Tax (GST)"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#\">What is GST (goods and services tax)?&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#\">How to handle GST as an ecommerce business&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#\">How ShipBob delivers GST compliance peace of mind to ecommerce businesses&nbsp;<\/a><\/p>\n\n\n\n<p><a href=\"#\">Goods and Services Tax (GST) FAQs&nbsp;<\/a><\/p>\n<\/div>\n\n\n\n<p>As your prepare to expand your ecommerce business internationally, there\u2019s a lot to look forward to. But amid the excitement of growing your business, there\u2019s also a lot that you have to prepare for \u2013 and that includes tax compliance.&nbsp;&nbsp;<\/p>\n\n\n\n<p>While US-based brands might be used to U.S. sales taxes, there are several other countries that require the GST, or \u201cGoods and Services Tax.\u201d To ensure an efficient international expansion for your brand, and a seamless purchasing and delivery experience for your customers all around the world, you\u2019ll need to know the ins and outs of GST.\u00a0\u00a0<\/p>\n\n\n\n<p>In this post, we\u2019ll dive deep into what GST is, why it\u2019s important, and how to handle GST for your ecommerce business.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-gst-goods-and-services-tax-nbsp\">What is GST (goods and services tax)?&nbsp;<\/h2>\n\n\n\n<p>GST, or Goods and Services Tax, is a type of consumption tax levied in some countries on products that are sold domestically and to buyers in other countries. While many brands opt to build GST in the cost of the product as a sales tax which the customer then pays for, ecommerce sellers are ultimately responsible for rendering the payment to the government.&nbsp;&nbsp;<\/p>\n\n\n\n<p>GST compliance is crucial when you sell to any one of the following countries:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Canada&nbsp;<\/li>\n\n\n\n<li>Australia&nbsp;<\/li>\n\n\n\n<li>New Zealand&nbsp;<\/li>\n\n\n\n<li>Singapore&nbsp;<\/li>\n\n\n\n<li>India&nbsp;<\/li>\n\n\n\n<li>Maldives&nbsp;<\/li>\n\n\n\n<li>Papua New Guinea&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-types-of-goods-and-services-taxes-nbsp\">Types of goods and services taxes&nbsp;<\/h3>\n\n\n\n<p>Most countries use a single GST system, which applies a standard rate to all goods and services supplied across their respective countries. However, in countries like India, there are several types of GST that may be applied depending on the where and how the sale is conducted.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cgst-nbsp\">CGST&nbsp;<\/h4>\n\n\n\n<p>CGST, or Central Goods and Services Tax, is GST collected by the central government. It is applied when the purchase and sale of goods take place within the same state, otherwise known as \u201cintra-state\u201d transactions.&nbsp;<\/p>\n\n\n\n<p>CGST is almost always accompanied by SGST.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-sgst-nbsp\">SGST&nbsp;<\/h4>\n\n\n\n<p>SGST, or State Goods and Services Tax, is GST collected by the state government. This state tax is applied along with the CGST for intra-state transactions, so that both the country\u2019s overarching government and the state governments get a portion of the tax revenue.&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>Example: <\/strong><em>A Mumbai-based ecommerce brand sells goods to a customer in Mumbai. A CGST of 6% and an SGST of 6% apply to the goods in question. Subsequently, the seller charges a total of 12% GST and deposits the revenue to the central government and the Maharashtra state government.<\/em>&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-igst-nbsp\">IGST&nbsp;<\/h4>\n\n\n\n<p>IGST, or Integrated Goods and Services Tax, is a simpler tax that is levied on inter-state transactions (when the purchase and supply of goods take place between different states).&nbsp;<\/p>\n\n\n\n<p>IGST also applies to goods and services imported into the country, which means that IGST will be collected when a buyer based in that country purchases goods from a different country.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The tax revenue from IGST is shared between the central and state governments. Although IGST also applies to exports, they\u2019re considered as zero-rated supplies and thus essentially cost the seller nothing.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"is-style-indent\"><strong>Example: <\/strong><em>An ecommerce seller based in Mumbai imports goods from a brand based in the United States. In this example, we\u2019ll say that for this particular type of goods, an IGST of 12% applies. The U.S. brand collects the GST from the seller and then deposits the revenue with the Indian central government.<\/em>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-importance-of-gst-for-ecommerce-businesses-nbsp\">Importance of GST for ecommerce businesses&nbsp;<\/h3>\n\n\n\n<p>GST isn\u2019t something ecommerce businesses can ignore; rather, it can have big implications for your business. Here are just some of the ways that GST impacts brands selling internationally.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/09\/Compliance.png?w=1024\" alt=\"\" class=\"wp-image-22574\" \/><\/figure>\n<\/div>\n\n\n<h4 class=\"wp-block-heading\" id=\"h-gst-compliance-nbsp\">GST compliance&nbsp;<\/h4>\n\n\n\n<p>Failing to collect GST, deposit the revenue, or file your GST return will result in expensive penalties and fines. In addition to the massive financial blowback, your business could also face legal issues (such as fraud charges) in the case of severe GST non-compliance.&nbsp;<\/p>\n\n\n\n<p>A thorough understanding of GST law will help you&nbsp;maintain GST compliance. This prevents accidental tax evasion and ensures that you\u2019re filing your tax returns accurately and on time. That way, you can fulfil your legal obligations when <a href=\"https:\/\/www.shipbob.com\/blog\/global-shipping\/\" target=\"_blank\" rel=\"noreferrer noopener\">shipping globally<\/a>, helping you avoid expensive penalties and legal repercussions.&nbsp;<\/p>\n\n\n\n<p>If you have a fulfilment partner like ShipBob handling your international fulfilment and shipping, make sure that they&nbsp;integrate with leading tax automation tools (such as <a href=\"https:\/\/www.shipbob.com\/partners\/avalara\/\" target=\"_blank\" rel=\"noreferrer noopener\">Avalara<\/a>, <a href=\"https:\/\/www.shipbob.com\/partners\/taxually\/\" target=\"_blank\" rel=\"noreferrer noopener\">Taxtually<\/a>, and <a href=\"https:\/\/www.shipbob.com\/partners\/taxjar\/\" target=\"_blank\" rel=\"noreferrer noopener\">TaxJar<\/a>).This allows you to automatically collect taxes and file your GST returns.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2022\/07\/Piggy-Bank-Test.jpg?w=1024\" alt=\"\" class=\"wp-image-1647\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-impact-on-pricing-and-profitability-nbsp\">Impact on pricing and profitability&nbsp;<\/h4>\n\n\n\n<p>GST can affect your <a href=\"https:\/\/www.shipbob.com\/blog\/product-pricing-online\/\" target=\"_blank\" rel=\"noreferrer noopener\">product pricing<\/a>, which in turn can affect your business\u2019s bottom line and profits. &nbsp;<\/p>\n\n\n\n<p>When brands&nbsp;calculate and add GST at checkout, customers might&nbsp;be surprised at the extra charge and abandon their carts after realizing that they\u2019ll have to pay more than they anticipated. Many brands choose to build GST into the product\u2019s listed price to avoid this surprise, but this can make your products come across as more \u201cexpensive\u201d than they actually are and deter budget-conscious shoppers in the first place. &nbsp;<\/p>\n\n\n\n<p>While neither option is ideal, there are ways to navigate implementing GST to mitigate its impact on the customer journey. You\u2019ll need to evaluate your brand\u2019s <a href=\"https:\/\/www.shipbob.com\/blog\/demand-forecasting\/\" target=\"_blank\" rel=\"noreferrer noopener\">demand levels<\/a>, sales patterns, and financials to create a pricing strategy that works for you. &nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"467\" width=\"700\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=1024\" alt=\"\" class=\"wp-image-11043\" srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=2560 2560w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=400 400w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=700 700w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=768 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=1536 1536w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=2048 2048w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=1280 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/78cb32e85a953d058aa9d1e764038ce7-scaled.jpg?w=240 240w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n<\/div>\n\n\n<h4 class=\"wp-block-heading\" id=\"h-documentation-and-tax-calculations-nbsp\">Documentation and tax calculations&nbsp;<\/h4>\n\n\n\n<p>The GST registration and filing processes require that you maintain a number of essential documents, including trade licenses and clearance certificates. As a result, ecommerce brands selling internationally will need to be up-to-speed on all required documentation and track transactions closely for tax purposes down the road.&nbsp;<\/p>\n\n\n\n<p>The process of calculating GST tax can be extremely complicated \u2013 especially for businesses dealing with a large number of international sales. Having a diverse variety of goods can also complicate the calculation process, especially if those goods fall under different GST slabs. Additional costs like <a href=\"https:\/\/www.shipbob.com\/blog\/import-duties\/\" target=\"_blank\" rel=\"noreferrer noopener\">import duties<\/a> and shipping only further complicate the process.&nbsp;<\/p>\n\n\n\n<p>Tax and e-invoicing tools can help you maintain all your GST documents and multichannel transactions in one place. Some even come with smart product classifications for accurate and real-time tax calculations.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-handle-gst-as-an-ecommerce-business-nbsp\">How to handle GST as an ecommerce business&nbsp;<\/h2>\n\n\n\n<p>As an ecommerce business, there are four&nbsp;action items for GST: registration, collection, payment, and filing. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-gst-registration-process-nbsp\">GST registration process&nbsp;<\/h3>\n\n\n\n<p>The process of registering for GST depends on the country that you\u2019re selling to. Each country has a different GST registration process, along with a unique set of requirements. Most countries will require some proof of identity as well as documents proving that your business is legitimate and legal. Each country will also have a dedicated website where you can complete your GST registration online.&nbsp;<\/p>\n\n\n\n<p>Here are some of the requirements listed on the official government sources of each country.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Country<\/strong>&nbsp;<\/td><td><strong>Requirements<\/strong>&nbsp;<\/td><td><strong>How to Register<\/strong>&nbsp;<\/td><\/tr><tr><td>Australia&nbsp;<\/td><td>Australian Business Number (ABN)&nbsp;&nbsp;Proof of identity&nbsp;&nbsp;Business structure&nbsp;&nbsp;Details of business activities and associates&nbsp;<\/td><td><a href=\"https:\/\/register.business.gov.au\/additional\" target=\"_blank\" rel=\"noreferrer noopener\">Register for GST through the Business Registration Service<\/a>.&nbsp;<\/td><\/tr><tr><td>Canada&nbsp;<\/td><td>Business number (BN)&nbsp;&nbsp;Effective date of registration&nbsp;&nbsp;Fiscal year for GST\/HST&nbsp;&nbsp;Total annual revenue&nbsp;&nbsp;Basic business information&nbsp;<\/td><td><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/gst-hst-businesses\/account-register.html\" target=\"_blank\" rel=\"noreferrer noopener\">Register for GST through Business Registration Online<\/a>.&nbsp;<\/td><\/tr><tr><td>India&nbsp;<\/td><td>Tax identification number&nbsp;&nbsp;Proof of business incorporation&nbsp;&nbsp;Address proof&nbsp;&nbsp;Bank account proof&nbsp;&nbsp;Digital signature&nbsp;<\/td><td><a href=\"https:\/\/www.gst.gov.in\/\" target=\"_blank\" rel=\"noreferrer noopener\">Register for GST through the GST portal<\/a>.&nbsp;<\/td><\/tr><tr><td>Maldives&nbsp;<\/td><td>Completed Maldives Inland Revenue Authority (MIRA) 105 form&nbsp;&nbsp;Company registration number&nbsp;&nbsp;Basic information&nbsp;<\/td><td><a href=\"https:\/\/www.mira.gov.mv\/Forms\/View\/mira-105-GST-Registration-20.1\" target=\"_blank\" rel=\"noreferrer noopener\">Register for GST through MIRA.<\/a>&nbsp;<\/td><\/tr><tr><td>New Zealand&nbsp;<\/td><td>IRD number&nbsp;&nbsp;Business industry classification (BIC) code&nbsp;&nbsp;Bank account number for GST refunds&nbsp;&nbsp;Business turnover in the last 12 months&nbsp;&nbsp;Expected business turnover in the next 12 months&nbsp;<\/td><td><a href=\"https:\/\/www.ird.govt.nz\/gst\/registering-for-gst\/register-for-gst\" target=\"_blank\" rel=\"noreferrer noopener\">Register for GST through Inland Revenue<\/a>.&nbsp;<\/td><\/tr><tr><td>Papua New Guinea&nbsp;<\/td><td>Taxpayer Identification Number (TIN)&nbsp;&nbsp;Completed GST registration form&nbsp;<\/td><td>Registration forms are available at any<a href=\"https:\/\/irc.gov.pg\/pages\/taxes\/businesses-and-employers\/goods-services-tax\" target=\"_blank\" rel=\"noreferrer noopener\"> IRC (Internal Revenue Commission) GST website<\/a>.&nbsp;<\/td><\/tr><tr><td>Singapore&nbsp;<\/td><td>Copy of latest profit and loss account&nbsp;&nbsp;Copy of rental agreement&nbsp;&nbsp;For overseas businesses, Letter of Authorization to appoint a local agent to comply with their GST legal obligations&nbsp;<\/td><td>Register for GST through the<a href=\"https:\/\/mytax.iras.gov.sg\/login\/selection\" target=\"_blank\" rel=\"noreferrer noopener\"> myTax Portal<\/a>.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-gst-filing-and-payment-nbsp\">GST filing and payment&nbsp;<\/h3>\n\n\n\n<p>Once you have a GST registration, you\u2019ll be provided a unique GST number, or \u201cGSTN.\u201d This number will be used as a reference when making payments and filing your annual returns.&nbsp;<\/p>\n\n\n\n<p>Most countries will give you the option to pay GST through their respective taxation portals. You can also use the same portals for your annual return filing. In most cases, however, you\u2019ll have to enter the tax liability yourself. This can be tricky since it also means you need to perform the tax calculation yourself, which can be complex if you\u2019re handling large quantities of eligible transactions each year.&nbsp;<\/p>\n\n\n\n<p>The best workaround for this is to have an automated tax calculation system that\u2019s integrated with your ecommerce platforms. This will automatically identify all the applicable purchases for which you need to collect GST, calculate the due amount in real-time, and include the charge before the customer makes the payment.&nbsp;<\/p>\n\n\n\n<p>That way, the GST you\u2019ve collected will be automatically recorded and maintained in one centralised system. This will simplify the process of calculating, paying, and filing GST further down the line.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-gst-rates-and-categories-nbsp\">GST rates and categories&nbsp;<\/h3>\n\n\n\n<p>One of the most complex aspects of ecommerce GST compliance is calculating tax rates. This is especially challenging if you\u2019re selling to multiple countries that use GST since each country has a different tax system in place. That means there will be a separate tax structure, product categorization system, concessions, and exemptions list for each country.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-australia-nbsp\">Australia&nbsp;<\/h4>\n\n\n\n<p>In Australia, the goods and services tax for most goods is 10%, with some exceptions and zero-rated supplies. Most overseas businesses selling to Australian customers are liable to collect GST. This includes businesses selling services, digital goods, and goods worth AUD 1,000 or less.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-canada-nbsp\">Canada&nbsp;<\/h4>\n\n\n\n<p>There\u2019s a standard 5% federal GST rate that applies across Canada. Additionally, the Provincial Sales Tax (PST) is levied by each province at a rate ranging between 6% and 10%. Certain items, such as basic groceries and prescription medication, as well as some transportation and medical devices, are considered zero-rated supplies.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-india-nbsp\">India&nbsp;<\/h4>\n\n\n\n<p>India has one of the most comprehensive GST categorization systems, with tax rates that fall under four slabs \u2013 5%, 12%, 18%, and 28%. Most items fall under the 18% tax slab, including entertainment tax for tickets to events, movies, and shows. Luxury commodities and and consumer durables fall under the highest tax slab of 28%. Essential commodities (like eggs, milk, and curd) and education services fall under zero-rated supplies.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-maldives-nbsp\">Maldives&nbsp;<\/h4>\n\n\n\n<p>With the exception of certain supplies, most goods and services in the Maldives are taxed at a standard GST rate of 8%.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-new-zealand-nbsp\">New Zealand&nbsp;<\/h4>\n\n\n\n<p>In New Zealand, the standard tax rate of 15% GST applies to most goods and services. A reduced rate of 9% applies to services like long-term hotel accommodations. Real estate, financial services, and precious metals are exempt.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-papua-new-guinea-nbsp\">Papua New Guinea&nbsp;<\/h4>\n\n\n\n<p>There\u2019s a standard 10% GST that applies to most goods and services sold in Papua New Guinea. However, certain categories that fall under educational, medical, or financial services are exempt.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-singapore-nbsp\">Singapore&nbsp;<\/h4>\n\n\n\n<p>In Singapore, most goods and services are taxed at a standard rate of 9%. However, there are exemptions on transactions that involve residential properties, financial services, currency exchanges, bank operation charges, loans, and life insurance policies.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-shipbob-delivers-gst-compliance-peace-of-mind-to-ecommerce-businesses-nbsp\">How ShipBob delivers GST compliance peace of mind to ecommerce businesses&nbsp;<\/h2>\n\n\n\n<p>Navigating the complexities of GST is part and parcel of your international fulfilment strategy \u2013 and as a leading fulfilment platform, ShipBob is here to help optimise your cross-border logistics. &nbsp;<\/p>\n\n\n\n<p>ShipBob\u2019s global infrastructure, expertise, and best practices enable brands to scale their ecommerce operations worldwide with ease. While ShipBob is not a tax partner and does not advise brands on their tax obligations, we\u2019re here to optimise your fulfilment strategy no matter where you sell or ship. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-global-fulfillment-network-nbsp\">Global fulfilment network&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s global network of fulfilment centres helps you sell seamlessly to international customers. You can store your inventory strategically across different <a href=\"https:\/\/www.shipbob.com\/shipbob-locations\/\" target=\"_blank\" rel=\"noreferrer noopener\">ShipBob locations<\/a> in the <a href=\"https:\/\/support.shipbob.com\/s\/article\/ShipBob-Fulfillment-in-the-United-States\/\">US<\/a>, the <a href=\"https:\/\/support.shipbob.com\/s\/article\/ShipBob-Fulfillment-in-the-United-Kingdom\/\">UK<\/a>, Europe, <a href=\"https:\/\/support.shipbob.com\/s\/article\/ShipBob-Fulfillment-in-Canada\/\">Canada<\/a>, and <a href=\"https:\/\/support.shipbob.com\/s\/article\/ShipBob-Fulfillment-in-Australia\/\">Australia<\/a> to speed up fulfilment and reduce shipping costs for customers in different countries (including those that apply GST). \u00a0<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe\u2019ve been utilising ShipBob\u2019s fulfilment centres in the US, Australia, and Canada, and the UK. We also recently launched in Europe using ShipBob. <\/em><\/p>\n\n\n\n<p><em>Shipping cross-border is never easy, especially when you\u2019re shipping a product that qualifies as a dangerous good since our products contain alcohol. By storing inventory in ShipBob\u2019s facilities within the countries or near the geographies we\u2019re shipping to, we can bypass a lot of the complexities of international shipping. It makes our lives significantly easier. But more importantly, shipping locally instead of internationally is better for customers. <\/em><\/p>\n\n\n\n<p><em>You can always navigate cross-border complexities, but you can\u2019t undo a customer\u2019s stressful delivery experience. Leveraging ShipBob\u2019s global network to fulfil and ship locally reassures our customers, so that when someone in a key market like Australia or Canada buys from us, they\u2019re not worrying about their order getting stuck in customs or wondering if they\u2019ll ever get their items. They also know it\u2019s not going to take two weeks or more to be delivered, and they don\u2019t have to pay exorbitant international shipping rates.\u201d<\/em><\/p>\n\n\n\n<p>Sergio Tache, Founder and CEO of Dossier&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inventory-placement-program-ipp-nbsp\">Inventory placement program (IPP)&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/product\/inventory-placement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Inventory Placement Program<\/a> (IPP) lets you automate your inventory distribution process to meet demand as quickly and cost-effectively as possible. The program\u2019s proprietary algorithm automatically identifies the&nbsp;most optimal inventory split across ShipBob\u2019s dozens of fulfilment centres worldwide, so that you can improve shipping times while lowering shipping costs. This helps you bolster your bottom line, and preserve profits despite extra taxes, duties, or customs fees you incur. &nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe\u2019re using ShipBob\u2019s Inventory Placement Program to manage inventory allocation and distribution, and it\u2019s been super helpful for us. We send our inventory to one hub location, and from there, ShipBob determines the most strategic split of inventory across its fulfilment centre network and distributes our inventory for us. <\/em><\/p>\n\n\n\n<p><em>Having the ability to reduce shipping costs through distributed inventory is probably the difference between profitability and unprofitability for most businesses in the DTC space \u2013 so the fact that ShipBob\u2019s network enables brands to do it so easily is a huge differentiator.\u201d<\/em><\/p>\n\n\n\n<p>Neil Blewitt, SVP of Operations at Bloom Nutrition&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-technology-integration-nbsp\">Technology integration&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s robust <a href=\"https:\/\/www.shipbob.com\/shipbob-locations\/usa\/pacific-northwest\/\">partner ecosystem<\/a> includes leading tax platforms to simplify tax calculation, payments, and return filing processes. Integrations with platforms like TaxJar allow for real-time tax calculations using smart product classifications based on accurate <a href=\"https:\/\/www.shipbob.com\/blog\/hts-codes\/\" target=\"_blank\" rel=\"noreferrer noopener\">HTS codes<\/a>. You can even automate filing by automatically submitting your returns and remittances to the respective states where you have a registration.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-customs-and-duties-management-nbsp\">Customs and duties management&nbsp;<\/h3>\n\n\n\n<p>If your brand sells to customers in the US, UK, Netherlands, Canada, or Australia, you can leverage ShipBob\u2019s international fulfilment centres to fulfil orders within the country you\u2019re shipping to, eliminating customs and duties on DTC orders. &nbsp;<\/p>\n\n\n\n<p>If your shipments require <a href=\"https:\/\/www.shipbob.com\/blog\/customs-clearance\/\" target=\"_blank\" rel=\"noreferrer noopener\">customs clearance,<\/a> ShipBob\u2019s delivery duty paid <a href=\"https:\/\/www.shipbob.com\/blog\/ddp-shipping\/\" target=\"_blank\" rel=\"noreferrer noopener\">or DDP shipping<\/a> solution enables you to calculate and present customers with all the necessary duties and taxes at checkout, so they aren\u2019t left on the hook for those costs later on. This transparency can be a huge conversion lever for international sellers, and can help your brand lower your cart abandonment rate and boost customer loyalty.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe also leverage ShipBob Delivered Duties Paid (DDP) shipping to reach our customers outside of the US. Using ShipBob DDP allows us to ship worldwide and we\u2019re lucky that ShipBob has a solution like that because we\u2019ve used it since we onboarded. ShipBob has great worldwide support. We\u2019re really looking forward to activating other countries with ShipBob, especially because we don\u2019t have someone internally with global expansion expertise. It will be helpful to work with ShipBob to make sure those launches go smoothly. \u201d<\/em><\/p>\n\n\n\n<p>Kayleigh Christina, Co-Founder and CMO of CLEARSTEM&nbsp;&nbsp;&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p>For more information on how ShipBob can help you optimise your international fulfilment, click the button below to get in touch. <\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\">Request a Quote<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-goods-and-services-tax-gst-faqs-nbsp\">Goods and Services Tax (GST) FAQs&nbsp;<\/h2>\n\n\n\n<p>Below are answers to the most commonly asked questions about GST.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Who is supposed to pay GST &ndash; the retailer or the customer?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>The customer pays the GST to a retailer, while the retailer remits it to the government.&nbsp;<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How does GST impact ecommerce businesses?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>GST compliance is a critical aspect of fulfilling and shipping ecommerce orders internationally, and failure to adhere to GST regulations can lead to legal trouble for your business. GST will also increase the cost to customers to purchase your products, which may impact your product pricing strategy and your brand&rsquo;s profitability.&nbsp;<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How can ShipBob help with GST compliance?&nbsp;<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>While ShipBob is not a tax partner and does not advise brands on their tax obligations, our global fulfilment network enables brands to either fulfil orders in the country they are shipping to (to avoid cross-border complexities, duties, and customs altogether) and our integrations with leading tax platforms to help automate GST calculation and compliance. <\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn what Goods and Services Tax (GST) is, why it\u2019s important, and how to handle GST for your ecommerce business. <\/p>\n","protected":false},"author":194,"featured_media":22573,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[6,7,13],"class_list":["post-18577","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-ecommerce-tips","blogcategories-fulfillment","blogcategories-shipping"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is Goods and Services Tax? 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