Here is some important information that may impact overseas trading for some of you in MI…
As of 1st July 2018, Australian goods and services tax (GST) will apply to sales of low value goods imported by consumers into Australia.
The Australian government website sets out the new rules as follows:
Businesses that meet the registration threshold of A$75,000 will need to:
- Register for GST
- Charge GST on sales of low value imported goods (unless they are GST-free)
- Lodge returns to the ATO.
These businesses may be merchants who sell goods, electronic distribution platform operators or re-deliverers. For goods imported in a consignment over A$1,000, any GST, customs duty and clearance charges will be charged to the importer at the border under existing processes.
This new law is designed so that businesses:
- Will not charge GST on a sale when GST will be charged at the border, because an item is either
- worth over A$1,000
- a tobacco product
- an alcoholic beverage
- Will not need to charge GST on a sale if it is clear that multiple goods will be shipped to Australia in one consignment worth over A$1,000 – GST will be charged at the border instead.
For more information please see: https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/
There are also details on how you can convert your local currency to Australian dollars and a useful Webinar explaining the new law at this link