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The ATO has this morning urged tax professionals to take note of the important changes to the GST rules for overseas business clients, which come into effect in the second half of the year.
From 1 October 2016, overseas business clients may no longer be subject to GST.
Overseas businesses supplying Australian businesses do not need to register for GST if they only make GST-free supplies through an enterprise carried on outside Australia.
Further, they do not need to register for GST if they have a business presence in Australia of fewer than 184 days in a 12-month period, or have a GST turnover below the GST registration threshold of $75,000 – because certain supplies will no longer be included in the GST turnover.
“For your GST-registered importer clients, you do not need to identify the exact amount paid for international transport, insurance and other costs to calculate the value of the taxable importation for GST purposes,” the ATO stated.
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