On November 4, 2016 the Australian Government released exposure draft legislation and associated explanatory material that would amend the goods and services tax (GST) law to give effect to the 2016-17 Budget decision to apply GST to low value goods imported by consumers for consultation. The closing date for submissions is December 2, 2016.

 

From July 1, 2017, the law will require overseas vendors, electronic distribution platforms and goods forwarders to account for GST on sales of low value goods to consumers in Australia if they have GST turnover of $75,000 or more. By doing so Australia will  apply GST to the importation of low value goods using a vendor collection model.

 

The intention is that low value goods imported by consumers in Australia will face equivalent GST treatment to goods that are sourced domestically.

 

Click here to be forwarded to the webpage on the website of the Australian Treasury where one can find more information regarding this consultation. On that webpage one can also find links to an Exposure Draft, an Explanatory Memorandum and a Q&A.

 

 

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