New Import rules Goods and Services Tax

New Import Rules for Goods and Serice tax from 01 July 2017

If you are a non-resident and make supplies of goods, services or digital products to consumers or GST-registered businesses in Australia at or above the turnover threshold of a$75,000, the new GST rules will apply to you.

GST on services and digital products

From 1 July 2017, goods and services tax (GST) will apply to cross-border supplies of digital products and other services imported by Australian consumers.

This includes:

digital products such as streaming or downloading of movies, music, apps, games and e-books
Services such as architectural or legal services.
If you meet the registration turnover threshold of a$75,000 and make these supplies, you will be required to register for GST.

GST on low value imported goods

GST will apply to imported low value goods. This includes all physical goods sold to consumers and imported into Australia that have a value equal to or less than a$1,000. These goods are currently exempt from GST.

Suppliers with an Australian turnover of $75,000 or more in a twelve month period will be required to register and the charge GST

Under this New measure, you may need to register and pay GST if you:

Are a non-resident supplier who sells low value goods to consumers and import the goods into Australia, and
Meet the registration turnover threshold of a$75,000.

Registering for GST

Non-resident businesses can choose to register in the existing full GST registration system or the simplified GST system for non-residents.
You only need to register once, even if you supply more than one type of good or service.
Under the simplified GST system, non-resident suppliers of goods or digital products and services will be able to register online with minimal information.
Note: Being registered for GST purposes does not mean you are a permanent establishment for income tax purposes.

In summary, the reforms

make supplies of goods valued at $1,000 or less purchased by consumers and are brought to Australia with the assistance of the supplier pay the 10% GST.

treat the operator of an electronic distribution platform as the supplier of low value goods if the goods are purchased through the platform by consumers and brought to Australia with the assistance of either the supplier or the operator to pay the 10% GST.

treat re-deliverers as the suppliers of low value goods if the goods are delivered outside Australia as part of the supply and the re-deliverer assists with their delivery into Australia as part of, broadly, a shopping or mailbox service that it provides under an arrangement with the consumer to pay the 10% GST.

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