A lot of online stores are not from Australia, and many of their products cost less than $1,000. So whether it’s a gadget or a set of new clothes, from 1 July 2017 onwards, shoppers generally have to pay a little bit more for what they buy online from overseas retailers.
On 26 June 2017, the Government passed legislation to charge GST on imports. This legislation came about due to Australian businesses complaining about the unfair benefit enjoyed by foreign businesses with respect to Australian goods and services tax (GST).
The Treasury Laws Amendment GST Low Value Good Acts 2017 extends GST to low value imports of physical goods imported by consumers from 1 July 2018. This does not affect business to business imports.
It is a two-tiered system where low value goods under $1,000 will be taxed at the purchase point and high value goods, or goods over $1,000 AUD, will be taxed at the border.
Additionally, where goods are sold on an online platform, the online platform is responsible for the GST for goods shipped from offshore. However, for goods shipped from Australia the Australian seller is responsible.
So before you shop again at your favourite online store, find out more about the GST you have to pay from Effective PD’s webinar. To subscribe, visit www.effectivepd.com.au. Effective PD offers an innovative way for busy accountants to be on top of their game with continuing professional development in a brief, flexible and easy way.
