Upcoming changes to GST on low value imported goods From 1 July 2018, low value goods imported from overseas by Australian consumers will attract the Goods and Services Tax (GST).
This will require businesses (including suppliers, online marketplaces and redeliverers), with Australian sales of AUD75,000 or more each year, to collect GST on goods with a customs value of AUD1000 or less at the time of sale. For tax purposes, these are treated as domestic sales and not importations.
Border processes will not change, however we advise businesses to consider whether changes to your business processes are required.
Goods with a value of more than AUD1000 will continue to be treated as importations and taxed at the border.
Overseas businesses impacted by this law change must:
• Register with the Australian Taxation Office (ATO)
• Charge GST on sales of low value imported goods (unless GST-free or alcohol and tobacco)
• Lodge returns with the ATO and make payments to them
• Ensure certain information is included in customs documents for the goods
To help sellers meet these requirements, the Integrated Cargo System will allow collection of vendor ID, importer ID and (where applicable) GST-paid exemption code. Further information is available at Treasury Laws Amendment (GST Low Value goods) Act 2017 and on. Please do not hesitate to contact us should you require further information.