From 1 July 2018, GST will apply to sales of low value goods imported by consumers into Australia.
GST on low value imported goods will apply to physical goods sold to consumers and imported into Australia that have a value equal to or less than AUD$1,000. These goods are currently exempt from GST.
Imported Services and Digital Products:
From 1 July 2017, GST applies to sales of imported services and digital products to Australian consumers. This means Australian consumers buying imported services or digital products may have GST included in the price of these purchases. This includes digital products such as streaming or downloading of movies, music, apps, games and e-books, and services such as architectural or legal services.
If overseas businesses make these supplies and meet the registration turnover threshold of A$75,000, they are required to register for and pay GST.
Please contact Custom Accounting if you have any queries about these changes to GST and how they may affect your business.