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Thursday, October 8, 2015

Australia – GST Treatment of Cross-border transactions

The exposure draft legislation is the second part of consultation on the Government’s tax integrity measure to extend the GST to digital products and other services imported by consumers.  This exposure draft builds on the feedback received from the first round of consultation, conducted from 12 May 2015 to 7 July 2015:

The Government has released an exposure draft Bill and associated explanatory material that would amend the goods and services tax (GST) law to give effect to the 2015-16 Budget decision to ensure digital products and services provided to Australian consumers receive equivalent GST treatment whether they are provided by Australian or foreign entities. The proposed amendments:
  • make the supply of anything other than goods or real property to an entity that is not registered or required to be registered for GST potentially subject to GST if that entity is an Australian resident;
  • provide that the GST will be payable on certain electronic supplies to which the above applies, by the operator of the service through which the supply is made to the consumer rather than the actual supplier; and
  • allow for the making of regulations to provide simplified rules for registration, tax periods and GST returns for entities to which the proposed amendments apply.
The exposure draft also seeks comments on provisions to give effect to the announced but previously unenacted measure relating to GST cross border transactions and the ‘connected with Australia’ rules.

Key Documents

Closing date for submissions: Wednesday, 21 October 2015: GST Treatment of Cross-border transactions | The Treasury

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