VATLive > Blog > GST > Australia GST on e-commerce 1 July 2018 - Avalara

Australia GST on e-commerce 1 July 2018

  • GST
  • 26 April 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.

Latest Australian news
Australia marketplaces split on e-commerce GST
July 10, 2018

From 1 July 2018, Australia withdrew the AU$1,000 GST-free import threshold on goods imported by consumers.  This effectively ended the tax subsidy foreign online merchants...
Australia GST on foreign hotel organisers
May 11, 2018

Australia is to impose 10% Goods and Services Tax on non-resident sellers and agents of Australian hotel accommodation. The vendors will only be liable to...
Australia GST on e-commerce 1 July 2018
April 26, 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...

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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.