From 1st July 2018, overseas vendors (including merchants, electronic distribution platforms, and re-deliverers) that meet GST registration requirements will be required to charge and collect GST at the point of sale on eligible goods.
There will be no changes to:
• the AUD1,000 threshold for reporting and collection of duties and taxes at the border;
• border clearance processes;
• the flow of goods across the border; and
• current import requirements for tobacco, tobacco products or alcoholic beverages regardless of value.
Home Affairs-ABF has issued the following reminder on the arrangements for GST on Low Value Imported Goods:
From 1st July 2018, the Goods and Services Tax (GST) may apply to goods with a customs value of $1,000 or less (low value goods) when imported from overseas by consumers in Australia.
Vendors, including merchants, electronic distribution platforms (EDPs) or re-deliverers, that meet GST registration requirements will be required to charge and collect GST at the point of sale on eligible goods with a customs value of $1,000 or less. In most circumstances, goods under $1,000 will be purchased and shipped as is currently done through self-assessed clearance declarations. There will be no changes to border clearance processes or to the movement of goods across the border. The $1,000 threshold for reporting and collection of duties and taxes at the border will also remain.
Suppliers are legally required to ensure that relevant tax information is included on import documents for the goods. They will ask their transporters or customs brokers in the country of export to collect this information and make sure it is provided to transporters or customs brokers in Australia.
Including the right information on the import documents will prevent double taxation at the border for the purchaser. However, if the low value goods have been taxed at the point of sale, and at the border, the purchasers of the goods will need to seek a GST refund from the supplier. This information is explained on the Australian Taxation Office (ATO) website.
