Overseas businesses are required to charge Australian GST on their sales of low value goods to consumers in Australia. The ATO said over 1,000 overseas businesses have registered for GST, including all known major suppliers and international platforms.
The ATO considers the GST on low value goods measure a successful initiative as it has collected over $250m since the measure took effect on 1 July 2018, well above initial expectations.
This measure requires overseas businesses to charge Australian GST on their sales of low value goods to consumers in Australia. The ATO said over 1,000 overseas businesses have registered for GST, including all known major suppliers and international platforms.
This includes platforms that are collecting GST when these goods are sold through them, thereby reducing the number of individual businesses that need to register.
The ATO said the GST collections on low value imported goods reflect a very strong overall level of compliance and is confident that the system is working well. It noted that various international organisations, including the OECD and the World Customs Organization, have studied reform options for low value goods and recognise the Australian model as an ideal one to follow.
Credit Source: ATO media release, 1 July 2019.
