Exposure Draft legislation released on applying GST to low value imports

On 4 November 2016 the Treasurer released an Exposure Draft of legislation to give effect of the decision in the 2016/17 Budget to extend GST to low value goods imported by consumers. The amendment will apply for tax periods starting on or after 1 July 2017.

The amendments will make the supplies of goods valued at $1,000 or less at the time of sale “connected with the indirect tax zone” if the goods are brought to Australia with the assistance of the supplier – the aim is to ensure that such supplies are subject to GST in the same way as domestic goods.

The amendments will treat the operators of electronic distribution platforms as the suppliers of the low value goods if they are purchased by consumers and brought to Australia through the platform.

GST will only be payable where the goods are purchased by a consumer. In general, a purchaser can confirm that they are not purchasing the goods as a consumer by providing their ABN and declaring that they acquire the goods for the purpose of their enterprise.

The following documents can be accessed here:

Submissions are due on the Exposure Draft on 2 December 2016.

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