As of last year (October 1st 2016) there have been some changes to GST in relation to overseas transactions. Some transactions between overseas businesses and Australian businesses are no long subject to GST. These changes relate to;
- Overseas businesses that supply or acquire goods from Australian business may not need to be registered for GST or have an ABN, although they will need to consider other Australian tax laws and obligations.
- Importers that are registered for GST will no longer need to identify the exact amount payable/paid for insurance, international transport and some other cots when they are calculating the cost importation (for GST purposes).
- There are some further changes to Australian businesses that supply services to non-resident businesses, which may be GST free.
Please consult your accountant at Rubiix Business Accountant to see how these changes may impact your business and how, if compliant, this may reduce your tax obligations.