January 18, 2018

New VAT registration regulations when importing goods into Australia

New GST rules in Australia will go in effect from July 1, 2018. These new rules mean that any North American company selling low value goods (low value goods are physical goods valued at AUS 1,000 or less) to private persons in Australia must register for, and pay Australian GST if the turnover is of AUD 75,000 or more in a 12-month period. Once a North American company has reached the threshold, it is required to also include any other applicable GST sales, such as services or digital products sold to Australian consumers. A North American company that is required to register for VAT, is also required to ensure that certain information is provided to customers and included on customs documents.
There are a few exceptions to the new law which includes: The North American company’s customer is a GST registered business within Australia, and are able to provide their Australian business number (ABN). It is also possible to apply for an exception (although the combined customs value of the goods is more than AUS 1,000) if the multiple goods are sold and shipped together in one consignment to Australia. Please contact our VAT experts for further information, or visit: ato.gov.au/AusGST

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