Exposure draft — GST on low value imported goods

GST on low value imported goods. Exposure draft —Draft legislation and explanatory material



The government has released exposure draft legislation and explanatory material for the measure to levy GST on low value imported goods, as announced in the 2016/17 Federal Budget.

The draft legislation will amend the GST Act to ensure that GST is payable on certain supplies of low value goods that are purchased by consumers and are imported into Australia.

The amendments will have the effect that supplies of goods valued at $1,000 or less at the time of sale are connected with Australia if the goods are brought to Australia with the assistance of the supplier. That will ensure that such supplies are subject to GST, consistent with equivalent supplies made within Australia.

From 1 July 2017, the law will require overseas vendors, electronic distribution platforms and goods forwarders — many of which are multinationals — to account for GST on sales of low value goods to consumers in Australia if they have GST turnover of $75,000 or more.

Australia will be the first country to apply GST to the importation of low value goods using a vendor collection model, with jurisdictions such as the European Union moving in the same direction.

The exposure draft Bill and explanatory materials are available on the Treasury website. Submissions will close on Friday, 2 December 2016.

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