Australia GST on Freight

Natureshop
New Member
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In Australia GST is charged on freight irrespective of whether the goods sold are GST free . The only exception of this method is where there is only one freight method offered. We have noticed a flaw in Shopify recently (Feb 2021) where it stopped charging  GST on freight if there is a GST free item sold. 

 

Could someone please advice if you have an similar issue or how did you go about solving it or the ATO ruling on it that sets Shopify behaviour.

We have raised it with Shopify tech support over 2 weeks back and the stock answer is that the team is very busy to respond .

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Natureshop
New Member
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Could anyone assist in how Shopify works out GST payable based on this order in our cart . The GST rate is 10% and all the figures shown are x-GST

Item A (GST Free)  Value $5.75

Item B(GST Applies) Value $81.90

Total Order Value = $87.65

Freight (GST applies) = $15.30

GST (Shopify calculation) = $9.41

Total Order Value (incl of GST and Freight) = $112.36

Shopify seems to be apportioning the GST on freight based on the proportion of the value of the items for which GST applies ...however I just cannot get how they arrive at this number

 

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Pam_Honey
New Member
1 0 0

Hi,

Yes I have noticed that there is either no GST be charged on freight or the wrong rate of gst is charged, yet some are charged the correct rate of 10%.  

I'm not sure how this is fixed.

 

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Natureshop
New Member
3 0 0

Hi - I have a incident opened with Shopify for over 2 months now and chatting with their support team, it has reached the tax specialists Q ... so probably in a couple of months , a response will hopefully be obtained. The difficulty is that in some cases the GST paid value is erroneous and Shopify under bills the transaction which then cannot be reconciled with the accounting package we use.  Its a problem ..

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