From 1 July 2017, overseas clients with an Australian turnover of $75 000 or more will need to register for, collect and pay GST on goods up to $1 000 that they sell to consumers in Australia.
If Australian clients are registered for GST and buy low value imported goods for their business from overseas, they will need to supply their ABN at the time of purchase so they won’t be charged GST.
If their business is not registered for GST, they will be treated as a consumer and unable to recover the GST charged by the overseas business.
These proposed changes are currently before parliament (in Treasury Laws Amendment (GST Low Value Goods) Bill 2017).
A draft Law Companion Guideline (LCG 2017/D2) and other guidance are available on the ATO’s website.