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If the SCOTUS decision that leaves the Sales Tax burden of all Interstate sales in a murky swamp [yes, that's means Congress who will have to step in and setup an Interstate Tax Commission, charge a flat Interstate Tax, collect the tax, and disperse it to the appropriate jurisdictions, for a cut of course], now you have [at least one] countries adding the burden of collecting International Goods and Services Tax and remitting it to that country, instead of the country charging it on the import thru it's customs agency!
Just as in the US where any state that charges a Sales Tax also requires it's residents to pay Use Tax on anything they purchase out of state or private where no tax was collected, now putting that burden of out of state vendors, countries are going to require International vendors to collect taxes for another country?! Expect many more countries to follow Australia's lead and start imposing the same burden on vendors shipping into their countries.
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Australia's Goods and Services Tax - What is Changing?
Prior to July 1, 2018, consumers in Australia could purchase products from international sellers and have them imported duty and tax-free as long as the product value was less than A$1,000. (GST was already being applied to goods and services over A$1,000.)
Effective as of July 1, 2018, Australia will now apply the 10% GST to all imports, including products valued under A$1,000.
Action Required - Register for GST
In order to comply with the recent changes made to the GST, international e-commerce merchants who have over A$75,000 annually in sales (sales directly to Australia) will be required to register with the Australian Taxation Office. Once registered, online retailers will need to charge and collect the GST tax when selling goods to Australian buyers. Note: This GST tax collection by the online retailer will be indicated on the customs documents.
If your sales are under A$75,000 you are not required to register with the Australian Taxation Office. When you sell a product to an Australian buyer, the GST tax will be applied at the border when the product is imported.
Be Ready for the New GST Law Changes!
If you are an international e-commerce merchant selling to Australia with sales over A$75,000, you MUST comply with the new regulations.
There are severe penalties for not complying with the GST law, including:
• Imposing an additional 75% administrative penalty (legally payable)
• Intercepting funds from Australian buyers that are destined to seller account(s)
• Registering the debt in a court in the U.S.Requesting the Internal Revenue Service to recover the debt on behalf of Australia
Register your company as a GST business with the Australian Taxation Authority.
Just as in the US where any state that charges a Sales Tax also requires it's residents to pay Use Tax on anything they purchase out of state or private where no tax was collected, now putting that burden of out of state vendors, countries are going to require International vendors to collect taxes for another country?! Expect many more countries to follow Australia's lead and start imposing the same burden on vendors shipping into their countries.
*************************************************************************************************************************
Australia's Goods and Services Tax - What is Changing?
Prior to July 1, 2018, consumers in Australia could purchase products from international sellers and have them imported duty and tax-free as long as the product value was less than A$1,000. (GST was already being applied to goods and services over A$1,000.)
Effective as of July 1, 2018, Australia will now apply the 10% GST to all imports, including products valued under A$1,000.
Action Required - Register for GST
In order to comply with the recent changes made to the GST, international e-commerce merchants who have over A$75,000 annually in sales (sales directly to Australia) will be required to register with the Australian Taxation Office. Once registered, online retailers will need to charge and collect the GST tax when selling goods to Australian buyers. Note: This GST tax collection by the online retailer will be indicated on the customs documents.
If your sales are under A$75,000 you are not required to register with the Australian Taxation Office. When you sell a product to an Australian buyer, the GST tax will be applied at the border when the product is imported.
Be Ready for the New GST Law Changes!
If you are an international e-commerce merchant selling to Australia with sales over A$75,000, you MUST comply with the new regulations.
There are severe penalties for not complying with the GST law, including:
• Imposing an additional 75% administrative penalty (legally payable)
• Intercepting funds from Australian buyers that are destined to seller account(s)
• Registering the debt in a court in the U.S.Requesting the Internal Revenue Service to recover the debt on behalf of Australia
Register your company as a GST business with the Australian Taxation Authority.
