This article provides a comprehensive guide to the taxes applied by Gelato in various countries across Asia and Oceania. It outlines the different tax rates and regulations applicable in each region, ensuring clarity and transparency for our valued customers.
Understanding GST in Australia and New Zealand
Gelato is legally obligated to charge Goods and Services Tax (GST) on customer transactions in both Australia and New Zealand. Here's a breakdown:
Australia
The GST rate in Australia is set at 10% of the price of the goods being sold. However, exported printed materials are GST-free if they are exported to a country outside Australia.
New Zealand
In New Zealand, the GST rate is 15% of the price of the goods being sold. For orders that are prepaid before printing begins, the GST should be excluded from the customer's charge, according to New Zealand tax regulations.
Navigating GST in India
Gelato is obligated to pay GST on customer transactions in India. The GST is categorized into CGST (Central GST), SGST (State GST), and IGST (Integrated GST), depending on the location of supply and production within India. GST rates vary based on the HSN code, and for printing materials, the code 49119990 applies. Currently, Gelato India produces printed material in Maharashtra, but this is subject to change if new printers are added to the network.
Place of Supply
When billing an Indian customer, the place of supply is in the same state as the billing address.
When billing a customer outside India but shipping to an Indian address, the place of supply is the shipping address.
When billing and shipping to a customer outside India, but printing in India, the place of supply is the country of export.
GST Rates
For supplies within Maharashtra, 6% CGST and 6% SGST will be added.
For supplies elsewhere in India but outside Maharashtra, 12% IGST will be added.
For supplies to countries other than India, no GST will be added.
VAT in Japan and China
Japan
Local Japanese customers purchasing print products through Gelato's website enter into a service contract with Gelato Japan and receive invoices from them. For these domestic sales, a 10% VAT is added. However, if a customer's billing entity is outside Japan but they want delivery within Japan, Gelato ASA will handle the billing. Since Gelato ASA is not registered for tax purposes in Japan, no Japanese VAT will be included in invoices to non-Japanese customers.
China
Similar to Japan, local Chinese customers purchasing print products through Gelato's website enter into a service contract with Gelato China and receive invoices from them. Domestic sales from Gelato China to local customers include a 13% VAT. For customers billed outside China but requiring delivery within China, Gelato ASA manages the billing. As Gelato ASA is not registered for tax purposes in China, no Chinese VAT applies to invoices issued to non-Chinese customers.