Australia: Foreign e-Commerce Purchases to be Subject to Goods & Services Tax (GST)
Currently, Australian consumers can purchase items from foreign websites without incurring a 10% GST charge. The exemption applies to dispatches with a value below AUS$1,000. Similar rules applying in the EU have a much lower threshold. Typically, VAT is chargeable where the value is €20.
The Australian Tax Office has announced that GST will be chargeable on purchases from foreign websites. Initial estimates place the potential value of such a move at AUS$1 billion.
This will place a responsibility on the foreign vendors to register with the ATO when they reach the registration threshold (currently AUS$75k). How the ATO will monitor and enforce this is currently unclear.
Subject to final approval, the changes are expected to come into force in July 2017.