Online Shopping and GST
From our February 2011 issue
What all of the fuss is about….
Generally, GST is levied on all goods and services consumed in Australia. This means that, while exports are generally GST-free, all goods imported into Australia are subject to GST at the rate of 10%.
As a result, businesses that import goods into Australia in the course of that business are required to remit 1/10th of the taxable value of the goods to the ATO on importation.
However where the value of such imports is AUD$1,000 or less, no GST is required to be remitted.
The current debate about the GST threshold has received a great deal of publicity of late, and is certainly worthy of consideration if you import goods as part of your business.
Online sales
The broader issue in this debate is online sales and the shifting landscape of the retail sector.
The government has announced a Productivity Commission review into this sector, and is also hosting an online retail forum in early 2011 to “encourage and support Australian retailers to explore online options”. People interested in participating in this online forum should register their interest at onlineretail@dbcde.gov.au.
You should also explore the Small Business Online Program if your business could benefit from guidance in this area.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.