Australia investigates lower GST registration threshold for foreign e-commerce sales |
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27 December 2011 The Australian government has agreed to review the current registration threshold for Goods and Sales Tax (‘GST’) for foreign, non-resident online traders selling into Currently, the GST registration threshold is AUS$ 1,000 per individual sale. Imposing Australian GST would increase the price to the Australian consumer by 10%. Aside from the loss of tax revenues for the federal government, it also means that Australian resident web traders are at a disadvantage since they must levy and collect the 10% GST on all local sales. To date, the main block to any change is devising a registration and compliance process for Australian GST that would be cost-effective. The government has stated that anything below AUS$ 100 per sale would be uneconomical. A new review board has now been established to attempt to calculate an economical limit, and devise an efficient registration and compliance regime. If you would like to learn more about Australian GST, please click here for a free consultation. |
