International taxation of goods and services supplied to Australia
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 as well as 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 and cross-border transactions between businesses
From 1 October 2016, certain transactions between overseas businesses and Australian businesses will no longer be subject to GST.
You should review your enterprise arrangements and consider whether you still need to be involved in Australia’s GST system.
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GST on low value imported goods
The government has announced that from 1 July 2017, if you are a non-resident supplier who sells low value goods to any consumer based in Australia and you meet the registration turnover threshold of A$75,000 you will need to:
- register for the Australian GST
- report and pay GST to the ATO.
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.
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Registering for GST
Non-resident businesses will have the choice to report and pay GST under either a simplified system or the full GST registration system. You only need to register once, even if you supply more than one type of good or service.
Registration of the non-resident supplier for GST purposes does not in itself create a permanent establishment for income tax purposes.
Simplified GST registration system
Under the simplified GST system, non-resident suppliers of goods or digital products and services will be able to register online with minimal information. Email AustraliaGST@ato.gov.auThis link opens in a new window if you want to be notified when the simplified GST registration system is available.
Full GST registration system
In order to register under the full GST registration system, you will need to:
- Apply for an Australian business number (ABN)External Link
- Register for an AUSkeyExternal Link
- Register for GST
If you are a non-resident and make supplies of goods or services to consumers or GST-registered businesses in Australia, there are new GST rules that will apply to you.