Australian GST tax has been around for a while first introduced by the Howard government back in July 2000.
Its a VAT Value added tax of 10% on products ad services with some exceptions.
Whats It Got To Do With My Ecommerce Sales?
If you are selling products online from anywhere in the world into Australia and your products are over AUS$1000 in value or you sell more than AUS$75,000 per year, you need to be thinking about GST.
From July 2018 10% GST is due on all goods sold into Australia by foreign sellers.
Once a non-resident ecommerce seller sells more than AUS$75000 per year registration is compulsory with Australian authorities. More Details & How To Register Here
In the past GST didn’t apply if the value of the item was under $1000 but its changed from July 18
From 1 July 2018, 10% GST is due on all goods sold by foreign online retailers to Australian consumers. Once the non-resident e-merchant sales more than AUS$75,000 per year, they must GST register with the Australian authorities, file and pay any tax due. It is estimated that over 3,000 foreign companies will have to register for GST on goods.
Previously, there was a AUS$1,000 low-value consignment stock exemption from GST, which effectively meant only luxury goods retailers incurred any GST.
Its likely fines will be imposed on sellers not following the guidance
If you need help with global taxation for ecommerce I recommend Hello Tax find out more here