What are the Rules of the GST on Imports that are Low Valued?
The import tax in Australia is now not a surprising factor, people are already knowing the terms but they are not aware of some rules and regulations. Here are some questions that provide the perfect information about the tax changes in Australia.
- Who will be affected by the GST on imports Australia new rules?
The affected companies can be:
- Traders: Who sell products directly to consumers.
- Electronic distribution platforms (EDP): Such as websites that offer a market for merchants to sell products to consumers.
- Redelivers: Companies that consumers hire to provide shopping or mailbox services, service that offers consumers a specific email address abroad, and then repacks and forwards the products to the consumer.
- Foreign business:That sells to Australia.
Foreign suppliers with Australian sales who are subject to a GST of AUD75, 000 or more per year, must:
- Register with the Australian Taxation Office (ATO).
- Collect GST on imports in Australia for sales of low-value imported goods to consumers (Unless they are free of GST or of alcoholic beverages and tobacco products).
- Lodge returns with ATO and makes payments.
- Ensure that certain information is included in the customs documents for the products.
The ATO is communicating, educating and helping the affected companies to comply with the measure.
More information can be obtained on the ATO website at GST on imported low-value goods, including information specific to carriers and customs agents.
- Who is not required to pay GST on Imports in Australia?
This new GST import tax Australia rule only applies to sales of imported low-value products to consumers in Australia.If your customer is a registered company, (that is, not a consumer) who bought the goods for use in your business in Australia, they are not charged by GST and are not obligated to pay them.If your company is a recipient of low-value goods, you must notify your suppliers of your GST record to ensure that they do not charge you twice for GST.
3. What is the GST on Low-value imports?
This tax changes Australia measure treats sales of goods valued at AUS $ 1,000 or less as subject to GST if the goods are purchased by Australian consumers and brought to Australia with the assistance of the supplier.
The EDPs will be treated as suppliers if the goods are purchased through an EDP and brought to Australia. This measure does not apply to the import of goods valued at more than AUS $ 1,000 or to shipments of multiple goods with a total value higher than AUS $ 1,000.
In these cases, the GST is payable by the importer at the border under the existing GST standards. Again, this measure does not apply to sales made directly to companies registered in Australia that make purchases only for commercial use.
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Article Source: New Rules of the GST on Imports in Australia