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Australia GST on e-commerce 1 July 2018

  • Apr 25, 2018 | Richard Asquith

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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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.