Offshore merchant data matching program and GST
This program is designed to identify offshore businesses supplying digital services, products, or low value imported goods to Australian consumers and ensure compliance with Goods and Services Tax (GST) obligations.
The ATO will acquire aggregate transaction data from major financial institutions to identify offshore businesses required to register and pay Australian GST on supplies of imported services, digital products and low value imported goods (supplies) made to Australian consumers.
This initiative:
- strengthens the integrity of the GST system
- promotes fair competition and,
- enhances revenue collection.
Program objectives
Our data-matching programs help us fulfil our responsibility to protect public revenue and maintain community confidence in the integrity of the tax and superannuation systems.
Program objectives are to:
- identify offshore businesses who may have Australian GST obligations
- educate offshore businesses on Australian GST registration, lodgment, and reporting obligations
- inform our risk management strategies.
Why we look at offshore merchant data
The program will help us to identify and address several tax risks, including:
- Registration risk
- to ensure that offshore entities who are required to be registered for Australian GST are registered
- Lodgement risk
- to ensure that registered entities are meeting their lodgment obligations
- Correct reporting risk
- to ensure that GST is correctly charged and reported on supplies.
For more information see How to charge GST on imported services, digital products and low value imported good