GST on low-value goods measure exceeds expectations
The ATO has collected over $250 million in GST for the first nine months of the low-value goods measure, which began on 1 July 2018.
As at 1 May 2019, the ATO has now collected over $250 million in GST for the first nine months of the low-value goods measure, which began on 1 July 2018, outstripping forecasts by $180 million.
GST collection on low-value imported goods has exceeded the ATO’s expectations, with $81 million of GST raised in the first quarter, surpassing the $70 million projected for the full year.
The low-value goods measure requires overseas businesses to charge Australian GST on their sales of low-value goods to consumers in Australia.
Over 1,000 overseas businesses have registered for GST, which includes all the known major suppliers and international platforms.
“The Organisation for Economic Co-operation and Development, the World Customs Organization and others have studied reform options for low-value goods. The Australian approach is increasingly recognised internationally as the model to follow,” the ATO said in a statement late last week.
As businesses do not need to register unless they meet the $A75,000 GST turnover requirements, most small independent operators do not need to register and have not been affected by this measure.