• GST on low value imported goods

    From 1 July 2018 Australian goods and services tax (GST) will apply to sales of low value goods imported by consumers into Australia.

    Businesses that meet the A$75,000 registration threshold 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
      • worth over A$1,000
      • a tobacco product, or
      • 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.

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    Last modified: 23 Jun 2017QC 52551