Recent developments in Australian GST law have removed some overseas transactions from the coverage of the GST law and relaxed GST compliance requirements for importers. The new law became effective on October 1, 2016. If you are a GST-registered business with overseas transactions or an overseas entity with transactions with Australian businesses, you may have to review those transactions to determine which arrangements are subject to GST or are now GST-free.
The wordings of the new law can sound very technical so for those in Sydney’s west, it’s important to consult our experienced tax professionals at ATP Tax Accountants about your situation.
GST and Non-Resident Businesses
As a rule, only non-resident businesses that are carrying on an enterprise in Australia are required to register and pay GST. Under the new law affecting GST, non-resident businesses supplying or acquiring goods from Australian businesses may not have to register for GST. Depending on your circumstances, you may either have to register for GST or cancel your GST registration.
More GST-Free Sales
Some supplies of services by Australian businesses to non-resident entities are now GST-free and therefore not taxable. These include:
Supply of training services to an overseas entity, although the services are provided to the non-resident entity’s employees in Australia;
Supply of repair services to an overseas company, although the services are rendered in Australia and to an entity in Australia, in order to fulfill the overseas company’s obligations under a warranty.
GST-Registered Importer Requirements
The new law also reduces the compliance obligations of importers by no longer requiring them to specify the amount paid for:
International transport
Loading/handling
Insurance
Service costs for transport
If you are an Australian business providing services to an overseas company, a GST-registered importer, or a non-resident company with business arrangements in Australia, the new GST law can affect you and your business. Contact an experienced tax accounting professional today.
At ATP Tax Accountants we provide a wide range of services, including tax advisory on GST obligations, to clients throughout Western Sydney, including Liverpool and Bankstown. Call us today at 1-300-829-484 or email rafiq@ATPtax.com to learn more about your GST obligations and options.
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