For those who operate small businesses from home selling imported good on platforms such as eBay need to be aware of the new GST changes.
From July 1st, 2018, GST will apply to retail sales of low-value physical goods, e.g. those with a value of $1000 or less that have been imported to Australia and sold to consumers. The existing processes to collect GST on imports above $1000 at the time they arrive in Australia are unchanged.
If your business meets the $75,000 GST registration threshold y and you sell low-value physical goods that have been imported. It is a requirement for each supply to:
- ensure are registered for GST
- Charge GST to customers on low value imported goods (unless they are GST-free), g. do not charge GST because the customer is not a consumer e.g. used in business by business
- Lodge a return to the Australian Tax Office (ATO).
In completing the Return for customs, it is essential to ensue the relevant tax information is included in the customs documents (such as a self-assessed clearance or import declaration) for goods if you are registered for GST, and you are either