What is GST? GST Review

history

Canada's GST was introduced by then Canadian Prime Minister Martin Brian Mulroney on January 1, 1991. The tax was controversial and became one of the factors that led to the defeat of the Progressive Conservative Party of Canada in the 1993 general election. The Liberal Party of Canada, which won the 1993 general election, promised to abolish the tax in its election manifesto at the time, but did not fulfill its promise during its time in office.

Australia's GST was implemented on July 1, 2000 by then Australian Prime Minister John Howard, replacing the sales tax system previously implemented by the government, and planned to abolish local taxes such as stamp duty and land tax.

The Australian Federal Parliament has passed the new GST bill, which will impose goods and services tax (GST) on low-value sales goods entering Australia (i.e. customs value equal to or less than A$1,000) from July 1, 2018.

GST registration threshold

If you sell low value imported goods to Australian consumers and your total sales amount is AUD 75,000 or more in a 12 month period, you will need to register and pay GST.

GST collection object

1. If you are a business selling low-value goods directly to Australia, you may need to charge GST at the time of sale;

2. If you are an operator of an online sales platform (such as an application or website) and merchants sell low-value goods to Australian consumers through the sales platform, you will be responsible for collecting GST;

3. If you are a merchant selling imported low-value goods through an online sales platform, the online sales platform will be responsible for collecting GST;

4. If you are a forwarder who assists consumers in transporting goods to Australia, you may need to charge GST as the forwarder of the goods.

5. Under the new policy, transporters are generally not regarded as transshippers and are not responsible for collecting GST.

How to calculate GST

If the product includes GST (GST included), divide the product price by 11 to get the GST value.

If the product does not include GST (GST excluded), divide the product price by 10 to get the GST value.

Businesses with GST of more than $75,000 will need

• Register for GST with the Australian Taxation Office (ATO)

• Collect GST on taxable sales

• Report GST to the ATO

• Pay GST to the ATO.

progress

Amazon Australia announced that it will start collecting GST from July 1.

Since July 1, 2018, eBay has also begun to respond to relevant Australian regulations and collect a 10% Goods and Services Tax (GST) on low-value items (≤1,000 Australian dollars) imported into Australia, and pay the collected tax to the Australian government.

References

• 1. Attention sellers on Amazon Australia, the Australian site will also collect GST! : Sohu [cited on 2018-04-18]