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Goods and Services Tax (GST)

What is GST?

The Goods and Services Tax (GST) is a value-added tax (VAT) that is levied on goods and services that are used domestically. Currently, around 160 countries have adopted the GST including Canada, Australia, and the United Kingdom. In Brazil and Canada, these countries use a dual GST structure which comprises of a federal and state tax. In regards to shipping, the GST is generally only applied to imports and not exports. However, the United States does not have GST, but instead utilizes a sales tax and Harmonized Tariff Schedule for imports/exports.

More about GST

France was the first country to implement a Goods and Services Tax in 1954. In the years that followed, many countries adopted the GST with India as the most notable case when the country shifted to a dual GST structure in 2017. Now, with the widespread adoption of the GST, it is imperative to be clear about any tax obligations you may incur while shipping goods from country to country.