Does your offshore business, or foreign company, supply goods or services to Australian consumers? If so, you should be aware of your obligations in Australia under the Goods and Services Tax (GST) regime.
Whether your business focus is on services, digital products, or low-value goods, understanding Australian GST is essential for international businesses operating in Australia.
Australian GST closely parallels Value Added Tax (VAT) or Sales Tax systems in other countries. It represents 10% tax applied to the value of the supply of services or goods.
You are liable to pay GST on goods or services to Australia if your supplies/services reach a threshold of $75,000.
You must then register for GST.
Determining whether you need to charge GST to the Australian Taxation Office (ATO) depends on what you are selling and how you are selling it.
Some of the goods or services that you are liable to pay GST if you met the threshold are:
For businesses falling into these categories, consider the following steps:
If you fail to register for GST when required, you may have to pay GST on sales made from the date you were supposed to register, even if you didn’t include GST in the price.
Penalties and interest may also apply.
As an offshore business, it is essential to ensure your Australian GST compliance is well-established. Focusing on GST from the outset not only guarantees compliance but also positions your business favourably in the Australian market.
For inquiries related to GST, contact us at email@example.com or call 02 9252 8746.