The Australian Taxation Office (ATO) has issued guidance on a new law that will apply the goods and services tax (GST) to international sales of services and digital products from July 1, 2017.
This change will touch a wide range of goods including streaming and downloading films, music, applications, games and e-book and also architectural and legal services.
The seller of digital products and services for Australian customers need to register for GTS witj ATO if there sales during 12 months will AUD75,000 or more. After registration they need to report with minimal proof of identity, lodge and pay GST and will not need to provide a a tax invoice or adjustment note to their customers.
The GST rate in Australia is 10 percent. As the ATO explained, “1/11th of the amount you charge for sales of digital products or services to Australian consumers will be the GST amount you must pay.” Australian consumers are Australian residents who are not registered for GST.
ATO says that sallers can The ATO said that sellers can comply with the new rules. It added that obtaining an Australian Business Number and statement from their customer that they are GST registered will assist in determining their status as a consumer.