Which foreign entities must register for gST?
From July 1 2018, if a foreign business trades in Australia, they must register for GST and pay GST to the Australian government if their Australian sales are above the threshhold.
The sales threshhold is $75,000 AUD. If a business expects to make sales to Australian consumers over the next twelve months to the value of $75,000 AUD, they must register and charge GST on their sales.
This includes digital sales, low-value imports etc.
Who Collects the GST?
On goods imported over $1000, Australian Customs will collect the GST when the goods arrive in Australia.
When these goods are sold, the GST is to be collected at the point of sale. If the products are sold on a website, usually the website shopping cart will add the GST to the sale and it will show as GST inclusive.
If the products are sold through a retail outlet, the retail outlet will add GST to the price of the goods
All this GST must be remitted back to the ATO on a quarterly or monthly BAS
What do foreign entities need to do?
If a foreign entity needs to register for GST in Australia, they can contact a BAS or Tax Agent or simply apply for the registrations.
Businesses that are not resident in Australia may apply for an ARN (Australian Registered Number).
- There is a simplified registration process for these suppliers
- They are unable to claim GST credits on purchases made in Australia
- ARN holders must also register for GST with the ATO
- ARN holders much lodge a quarterly BAS with the ATO
Businesses may also apply for an ABN (Australian Business Number).
- Registration is a little more complex and can be done through the Australian Business Register
- They may claim GST credits on purchases made in Australia
- ABN holders must also register for GST with the ATO
- ABN holders must lodge a quarterly BAS with the ATO
We strongly recommend foreign entities enlist the help of an Australian BAS agent to help them record and lodge their GST activity with the Australian Government
where can i get more information?
The Australian Tax Office (ATO) has a lot of information for foreign businesses trading in Australia
Click on this link to view the main article
Feel free to contact us for more info