Australian GST – International taxation of goods and services supplied to Australia


Australia has introduced certain amendments to her GST rules and if you are a non-resident and make supplies of goods, services or digital products to consumers (B2C transactions) or GST registered businesses in Australia (B2B transactions), you should note the following:

GST on services and digital products

  • From 1 July 2017, GST will apply to cross-border supplies of digital products and other services imported by Australian consumers.
  • Examples of digital products include downloaded movies, games and electronic books. Examples of services include architectural, legal or educational services. The new law applies very broadly to sales of anything except non-digital goods or real property.
  • If you sell through an electronic distribution platform, for example, an app store, the platform operator is responsible for registering, reporting and paying the GST.
  • If a person sells digital products or services to Australian consumers (B2C transactions) and he meets the registration annual turnover threshold (A$75,000), he is required to register for GST under a simplified system (which will be made available on ATO’s website from 1 April 2017).   Once registered, the person is required to report and pay GST to the ATO on sales made from 1 July 2017.
  • The ATO has clarified that such a registration in itself does not create a taxable presence for income tax purposes.

GST on low value imported goods

  • From 1 July 2017,  if a non-resident supplier who sells low-value goods to any consumer based in Australia and meets the registration turnover threshold of A$75,000, he will need to register for Australian GST and report and pay GST.  This includes all taxable goods that have a value equal to or less than A$1,000.
  • Law for this measure is yet to be enacted.

If you have any questions regarding the above, please contact support@whm-consulting.com.

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