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Australia GST on e-commerce 1 July 2018

  • GST
  • 26 April 2018 | Admin

Australia GST on e-commerce 1 July 2018

From 1 July 2018, 10% GST is due on all goods sold by foreign online retailers to Australian consumers. Once the non-resident e-merchant sales more than AUS$75,000 per annum, they must GST register with the Australian authorities, file and pay any tax due. It is estimated that over 3,000 foreign companies will have to register for GST on goods.

Previously, there was a AUS$1,000 low-value consignment stock exemption from GST, which effectively meant only luxury goods retailers incurred any GST.

The fines for non-compliance include a 75% administrative penalty. The Australian authorities will use a range of measures to track evasion, including tracking import information, reviewing sellers’ website and consumers’ foreign spend.

The GST reform was originally scheduled for July 2017, but resistance from the major online platforms resulted in a 1-year's delay to 2018.

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Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, excise, communications, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in the U.K., Belgium, Brazil, and India.