Do you know about Australia's Goods and Services Tax (GST)? Australia - What is Goods and Services Tax (GST)? Today I will introduce to you Australia - Goods and Services Tax (GST).
Australia's Goods and Services Tax (GST) was introduced in July 2000 and is similar to the EU's VAT system. From July 1, 2018, Australia imposes a tax on imported low-value goods (AUD 1,000 or less). The tax is collected from consumers by e-commerce platforms (such as Amazon) where the goods are traded, and the tax rate is 10%.
Businesses that must register for Australian GST:
① The current or expected annual turnover is AUD 75,000 or more (AUD 75,000 inclusive) ② The Australian Taxation Office requires that if the buyer requests a tax invoice, the seller must provide it within 28 days. However, sellers must first register for GST before they can issue tax invoices.
For businesses not registered for GST:
If a business fails to register for GST, it may be required to pay back taxes, along with penalties and interest. This may occur even if GST was not included in the sales price before registration.
Retroactive payment:
For tax periods beginning on or after 1 July 2012, GST registration can be retrospectively applied for 4 years. For more than 4 years, the seller does not need to file a GST return; does not need to pay the corresponding GST tax; cannot apply for GST credits on any purchases; and does not need to amend the income tax return. but! The ATO may still retrospectively register indefinitely if there has been fraud and tax evasion.
Tax scope:
Applies to sales with a connection to Australia, whether of goods, property or other things. Including the sale of low-priced imported goods to consumers; the sale of imported services and digital products to Australian consumers.
① Digital products, such as software or e-books, for Australian consumers
② Imported services to Australian consumers, such as professional consulting services
③Selling low-priced imported goods to Australian consumers, that is, goods with a customs value of AUD 1,000 or less entering Australia after the initial agreement with the customer (except tobacco products or alcoholic beverages)
④ Goods originating from Australia and delivered or provided to the purchaser in Australia
⑤ Real estate, which is located in Australia
GST Credit:
To claim a GST credit (i.e. a refund of the GST you paid on goods and services):
① For purchases exceeding AUD 82.5 (including GST), you must: register for GST and provide a valid tax invoice (recording the items purchased)
② For purchases not exceeding AUD 82.5 (including GST), you must: register for GST and provide proof (such as a receipt, invoice or receipt)
Goods and services exempt from GST:
① Most basic foods
② Certain educational courses, course materials and related excursions
③ Certain medical, sanitary and health services
④ Certain medical assistance
⑤ Certain medicines
⑥ Certain goods for export
⑦Some childcare
⑧ Certain religious services and charitable activities
Simplified/Standard GST:
For non-resident businesses that sell only through online marketplaces or electronic distribution platforms, there is a choice of registering for either simplified GST or standard GST.
① Simplified GST applies to eligible non-resident businesses that wish to register, report and make payments electronically quickly and easily, but businesses registered for simplified GST cannot apply for GST credits.
② Standard GST applies to businesses that have an Australian Business Number (ABN), have a supply link with Australia, issue tax invoices and wish to claim GST credits.
An ABN is a unique 11-digit identifier that identifies a business. To meet Australia's tax invoice requirements, a business's ABN must be included when issuing a valid tax invoice. When a business carries on business in Australia or has a supply link with Australia, it is entitled to apply for an ABN.
It should be noted that to register for standard GST, you must first apply for ABN; or apply for ABN and GST at the same time.
This is the end of my introduction to Australia’s Goods and Services Tax (GST) today. Do you have any questions about Australia’s Goods and Services Tax (GST)? Welcome to leave messages in the comment area for communication.
