From 1 July 2018, The Australian Tax Office is planning on implementing GST to sales of low value imported goods made to consumers in Australia from 1st July 2018.

Our experts in container delivery services Sydney explain that this applies to merchants that sell directly, as well as other entities such as online marketplaces (electronic distribution platforms) and re-deliverers who sell to consumers in Australia.

This change will now affect physical goods valued at A$1,000 or less, such as clothing, cosmetics, books and electronic appliances (GST already applies to imported services and digital products).

The Federal Parliament has passed law that will extend goods and services tax (GST) to low value imports of physical goods imported by consumers from 1 July 2018.

Businesses that meet the A$75,000 registration threshold will need to take action now to comply with the following, as stated by the ATO: 

• make supplies of goods valued at A$1,000 or less at the time of supply connected with Australia if the goods are purchased by consumers and are brought into Australia with the assistance of the supplier
• treat the operator of an electronic distribution platform (EDP) as the supplier of low value goods if the goods are purchased through the platform by consumers and brought into Australia with the assistance of either the supplier or the operator
• treat re-deliverers as the suppliers of low value goods if the goods are delivered outside of Australia as part of the supply, and the re-deliverer assists with their delivery into Australia as part of a shopping or mailbox service that it provides under an arrangement with the consumer
• allow non-resident suppliers of low value goods that are connected with Australia to elect to access the simplified registration and reporting system
• prevent double taxation.

Our container delivery service in Sydney recommends that to find out more about the changes to the GST on low value goods, contact the ATO.