Australia imposes new sales tax on international retailers
International online retailers who sell in Australia will be required to collect goods and service tax (GST) on all products sold valued at 1,000 Australian dollars (AUD) or less, the Australian Taxation Office (ATO) announced recently. Retailers using this system will only need to report total taxable sales and GST, and pay once each quarter.
The tax, applicable to international retailers if they have a GST turnover of AUD75,000 or more in a 12-month period, came into force after the Australian Government offered what it terms ‘fairer trading for all retailers’ to ensure that low-value goods purchased by consumers in Australia will have the same tax treatment, irrespective of the point of purchase.
“The ATO has the ability to use financial data tracking, customs data and online investigations to identify those that are not meeting their taxation obligations. Businesses that decide not to comply will face penalties,” ATO assistant commissioner Kate Roff said in a press release. (DS)