The Australian Government has recently announced that amendment to the current GST legislation will be made such that from 1 July 2017, non-Australian suppliers would be required to remit GST for sales of goods to Australian customers if the annual value of their taxable supplies is at least A$75,000.
This means that all goods sold to Australian customers by overseas vendors could be subject to Australian GST, subject to satisfying the registration threshold and other conditions that might be imposed on the overseas vendors.
In our opinion, this will be a significant change for online retailers of goods and could present a number of practical issues including pricing and determining when a sale is made to a customer located in Australia.
Will Singapore adopt this model? Only time will tell.
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