The Australian government has announced a new goods and services tax (GST) on international businesses selling goods into Australia valued at A$1,000 or less, with effect from 1 July 2018. Businesses making taxable supplies to consumers amounting to more than A$75,000 a year will have to register with the Australian Tax Office by that date. Those whose taxable supplies are less than A$75,000 a year, including transport and insurance, will not be affected.
The tax will apply to sales of physical goods through online marketplaces and resellers. The new law is designed to ensure low-value goods imported by consumers will have the same tax treatment as goods sourced from within Australia.
The rate of GST is 10% tax on most goods, services and other items sold or consumed in Australia, which UK retailers will be able to pass on to consumers at the point of sale. Businesses supplying goods to GST-registered Australian businesses will not be required to charge GST, similar to the EU VAT treatment of distance sales. UK businesses will not have to register if they only make business-to-business sales.
From 1 July 2017, GST becomes chargeable in Australia on sales of imported services and digital products to Australian consumers.
The Australian government has announced a new goods and services tax (GST) on international businesses selling goods into Australia valued at A$1,000 or less, with effect from 1 July 2018. Businesses making taxable supplies to consumers amounting to more than A$75,000 a year will have to register with the Australian Tax Office by that date. Those whose taxable supplies are less than A$75,000 a year, including transport and insurance, will not be affected.
The tax will apply to sales of physical goods through online marketplaces and resellers. The new law is designed to ensure low-value goods imported by consumers will have the same tax treatment as goods sourced from within Australia.
The rate of GST is 10% tax on most goods, services and other items sold or consumed in Australia, which UK retailers will be able to pass on to consumers at the point of sale. Businesses supplying goods to GST-registered Australian businesses will not be required to charge GST, similar to the EU VAT treatment of distance sales. UK businesses will not have to register if they only make business-to-business sales.
From 1 July 2017, GST becomes chargeable in Australia on sales of imported services and digital products to Australian consumers.
