Overseas sellers shipping to Australia will soon be subject to a new tax regime. The new Australia GST (general sales tax) will come into force from the 1st July 2018. What do you need to know?
From that date, GST will apply to the sale of low value goods sold to consumers in Australia valued at A$1,000 or less. International retailers must register online if they have a GST turnover of A$75,000 or more per year, according to recent information from the ATO (Australian Tax Office). Businesses that don’t comply will be subject to sanctions.
Our preferred approach is to continue working with businesses to help them comply. However we will make sure that any businesses that have made a genuine attempt to meet their taxation obligations will not be disadvantaged. Businesses that decide not to comply may face penalties. The new taxation measure will provide fairer trading for all retailers and ensure low value goods purchased by consumers in Australia have the same tax treatment, no matter where they are purchased from.
– Adrian Preston-Loh, ATO Assistant Commissioner
The ATO say they will use financial data tracking, customs data and online investigations to identify merchants that haven’t met their obligations. The possible sanctions they might face include:
You can read all about the new Australia GST for online sellers here.
New VAT rules like the Australia GST are part of a trend that we’re seeing increasingly in regards to global ecommerce. Yesterday we wrote about a similar proposed measure in New Zealand: New Zealand government proposes online shopping “Amazon tax”.