Client Q&A re: Exporting their product to the US, banking, GST & general tips...
Hi anonymous client!
Ok, pull up a pew and prepare for some exhilarating light reading…
Ive applied for and paid for this for you, its all linked to your activated ABN and you should get an email about it. I registered BUSINESS NAME for you and it will be registered for 3 years.
Your ABN is 12345678910. I have not registered you for GST as yet, let me know if you want to register but you do not need to register until you hit $75,000 of sales.
Exports are GST free whether you are registered or not. If the goods are being used overseas then you do not charge GST on the sale (if you are registered), but you do claim GST on the purchases if the materials/cost of goods sold are bought over here. To not charge GST on sales of export you also must export the goods within 60 days of the invoice or receiving payment, whichever is earlier.
Also, there are certain grants available for small businesses and exports, check this out to see if you may be eligible: https://www.austrade.gov.au/Australian/Export/Export-Grants/About/What-is-EMDG/what-is-emdg
If you import goods there are costs such as freight, taxes and insurances to be wary of. Australia Post website has some good information and calculators to help you assess this. https://auspost.com.au/business They also have great tools for printing shipping labels etc. There can be certain labelling requirements, call Aust Post for more info and to find out all of your considerations on 13 7678.
Westpac has accounts that you can use specifically for international trade that will offer good exchange rates, I think you should be able to set up a normal account and link it to a new Xero file and then Xero will work out the exchange etc for the transactions. https://www.westpac.com.au/business-banking/international-trade/all/ contact Westpac directly and they will be able to advise you on the best account and seeing as you already bank with them it should be super easy.
Other things I can think of that you may need to consider:
Product liability insurance – best to speak to a lawyer or insurance broker about this.
AHECC code see http://www.abs.gov.au/ausstats/[email protected]/mf/1233.0 there is a number down the bottom to find out if this will apply to you or not.
Now I know it looks like an overload, but don’t be turned off – your ideas seem to work and come to fruition, look at how you have built BUSINESS NAME in just 5/6 years!