imposes GST on Low Value Goods | Posted on Twelve 29, 2019
As of 1 December 2019, alue goods rules will commence. Overseas businesses that sell low-value goods to consumers in may need to register for, collect and return a Goods and Services Tax (GST) of 15% on goods where money is paid or an invoice is issued on or after 1 December 2019.
The new regulations apply to goods with a customs value of $1,000 or less and will require overseas businesses, including online marketplaces and merchants that sell direct and re-deliverers, to register an account for GST on sales to customers. The customs value of $1,000 excludes transport and insurance costs when determining if GST needs to be charged.
All consignments valued at $1,000 or less can be cleared on an Inward Cargo Report (ICR), a Simplified Import Declaration (SID) or a standard Import Declaration. There is no change to the current processing of goods valued at more than $1,000 – the standard GST and duty calculation will be applied.