Under the proposed amendments, imported goods with a customs value of $1,000 or under will have GST collected at the point of sale, using a vendor registration model. Under this model, overseas vendors that have an Australian turnover of $75,000 or more will be required to register for, collect and remit GST on low value goods supplied to consumers in Australia.
If you are registered for GST and buy low value imported goods for your business from overseas, you will need to supply your ABN at the time of purchase so you won't be charged GST.
If your business is not registered for GST you will be treated as a consumer and unable to recover the GST charged by the overseas business.
The amendments will apply in working out net amounts for tax periods commencing on or after 1 July 2017 and the GST treatment of importations occurring on or after 1 July 2017.
UBER DRIVERS MUST REGISTER FOR GST
Services provided by an Uber driver is constituted as a supply of "taxi travel" for GST purposes and thus the driver is required to be registered for GST. The ATO have advised that ride-sourcing enterprises should:
- keep records;
- have an ABN and register for GST, regardless of how much they earn;
- pay GST on the full fare received from passengers for each trip they provide;
- lodge activity statements and include income from ride-sourcing in their income tax returns.
Drivers are also entitled to claim income tax deductions and GST credits on expenses apportioned to the ride-sourcing services they have supplied.