There is currently legislation in Parliament to consider passing a bill that will ensure that GST is payable on certain imports into Australia of low-value goods. If passed the legislation will commence on or after 1st July 2017 and will mean that “overseas vendors”, “Electronic distribution platforms” and “Re deliverers” will have to account for GST on sales of low-value goods to consumers in Australia . Any of the 3 categories that have GST turnover of A$75,000 or more will need to participate in this new legislation.
Essentially this will force new cargo reporting and clearance requirements associated with the import of low range value cargo on International freight forwarders, express carriers, and licensed customs brokers. Overseas vendors will provide a simplified Registration option responsible for payment only of GST with the ATO to issue a unique Vendor Registration number ( VRN ).
It is noted that Australia would be the first country to apply GST to the importation of low valued goods using a “Vendor Collection Model”, with Jurisdictions such as the European Union moving towards the same regime.