Value of the Taxable Importation
Value of the Taxable Importation, often shortened to VoTI, is the base on which GST is calculated when goods enter Australia. GST on a taxable importation is 10% of that value. The value is the sum of the customs value of the goods, the amount paid or payable for international transport to the place of consignment in Australia and insurance for that transport, any customs duty payable, and any wine tax payable where relevant.
Why It Matters
GST on an import is charged on the landed value, not on the supplier invoice, so the cash cost at clearance is larger than 10% of the purchase price. On a machine with a customs value of $80,000, transport and insurance of $6,000, and customs duty of $4,000, the value of the taxable importation is $90,000 and the GST is $9,000. Taking 10% of the invoice alone would have suggested $8,000, understating the outlay by $1,000.
How It Works
- Start with the customs value of the goods, generally the price paid or payable when sold for export to Australia, determined under the customs valuation rules.
- Add the international transport and insurance to the place of consignment in Australia, to the extent not already in the customs value.
- Add any customs duty payable on the importation.
- Add any wine tax payable, where relevant.
- Apply 10% to the total to arrive at the GST payable.
Common Use Cases
- Budgeting the true cash cost of clearing imported equipment
- Assessing whether the deferred GST scheme is worth applying for
- Reconciling a customs broker's figures against an expected GST amount
Related Terms
Sources: ATO, GST and imported goods, ato.gov.au; Australian Border Force, Cost of importing goods, abf.gov.au (as at 26 August 2026). Figures for a specific consignment are a question for your customs broker or accountant. For how imported equipment purchases are funded, see Importing Business Equipment and Finance in Australia.