Overseas businesses that meet the GST registration threshold (A$75,000) will be required to charge GST on goods purchased from the 1 July 2018.
Specifically, GST will be charged on goods that are:
- less than A$1,000 (low-value);
- not GST-free (i.e., alcohol or tobacco products);
- and imported into Australia.
Individuals who purchase low-value goods (which they import) will be required to pay GST if they are not registered for GST or importing goods for personal use (even if they are GST registered).
However, individuals can avoid paying GST if they are:
- registered for GST;
- import low-value goods for business use in Australia;
- and provide their ABN to the supplier and a statement that they are GST registered.
Individuals charged GST incorrectly will need to contact the supplier to advise them they are registered for GST, and need to request a refund.