- GST Overview and Structure: Australia’s Goods and Services Tax (GST) is a broad-based consumption tax introduced in 2000, levied at a standard rate of 10% on most goods and services, with specific GST-free categories such as basic food and healthcare. Businesses charge GST on sales and can claim GST credits on eligible purchases, with compliance overseen by the Australian Taxation Office (ATO).
- Registration and Filing Requirements: Businesses must register for GST if their annual turnover exceeds AUD 75,000 (AUD 150,000 for non-profits), including non-resident businesses with sales connected to Australia. GST filing deadlines vary based on frequency—monthly filings are due on the 21st of the following month, while quarterly filings are due on the 28th day after the end of the quarter.
- Digital Services and Compliance: GST applies to cross-border digital services provided to Australian consumers at a rate of 10%, with a registration threshold of AUD 75,000. While e-invoicing is not mandatory, it is encouraged, and invoices must include essential details such as the business name, ABN, GST amount, and a description of the goods/services supplied. Digital reporting is required through the ATO’s electronic lodgement system, necessitating accurate records for all transactions.
Source VATit
