From 1 July 2017 Australian GST applies to imported services and digital products.
GST will not generally apply to sales to businesses of these imports if:
you are registered for GST
they are purchased for use in your business in Australia, and
you supply your ABN and a statement that you are registered for GST at the time of purchase.
Overseas businesses registered under the new simplified GST system for non-residents do not have an ABN and cannot issue a tax invoice. If you believe that GST has been incorrectly included in the price of the service or product, you should seek a refund from the supplier.
If you aren't registered for GST or your purchases are not for business purposes, you will need to pay the GST and won't be able to claim it back.
Examples of imported services and digital products include:
online supplies of software
digital trade journal/magazine subscriptions
website design or publishing services
legal, accounting or similar consultancy service
The ATO has opened and info line for bsinesses need further help, AustraliaGST@ato.gov.au.
More than ever the bookkeeping process needs to see the receipt to access if you have been charged GST by an imported service or digital product. We encourage all business clients to utilise receipt bank which integrates with Xero. For a limited time only we are offering an all you can eat package deal of $25 + GST per month which could provide savings in excess of $50 per month depending on the volume of transactions.
Find out about:
Information for business purchasers
GST on imported services and digital products
GST on low value imported goods