09 December 2016 Australian Government issues Exposure Draft regarding imposition of GST on low value imports from July 1, 2017 The Goods and Services Tax (GST) treatment of the importation of low value goods (LVG) valued at less than AU$1,000 has led to various reviews over many years but the Australian Government is now preparing to legislate the "destination principle." Australian retailers have maintained that they face an uneven playing field with respect to their sales to Australian customers that are subject to GST, given those of their foreign competitors generally are not. The Australian Government has committed to eliminating this discrepancy, most notably in the 2016 Budget. In a move that will be welcomed by most Australian retailers, but likely very few offshore sellers and even fewer Australian consumers, the Government has issued Exposure Draft legislation intended to impose GST on such LVG sales starting July 1, 2017. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-2107 |
