23 Feb ATO Plans to Charge the World GST
If the legislation gets passed, overseas businesses will have to register for GST in Australia if they have a turnover in excess of $75,000. Despite the difficulty of policing this law, it is actually a good thing.
The consequence of this will be that most of us will pay more for those things we buy online. 10% more to be precise, which all of a sudden makes those Chinese sourced birthday presents my kids love so much (hear the sarcasm there?) just a little bit more expensive.
Apart from consumers though, businesses will also potentially face increased costs. Businesses not registered for GST have no choice, they will have to wear the cost.
If Australian businesses do not provide their ABN to the international supplier, they will not be entitled to claim the GST on the cost
Businesses that are registered for GST will have to provide the overseas supplier with their ABN. If they do that then a credit will be available for the GST paid on the purchase just like any other GST purchase.
If you want more information please give me a call on (07) 5448 9600 or drop us an email at admin@growaccounting.com.au.