Non-resident suppliers to prepare for Australian GST to apply at source of payment
A planned change to apply Australian GST to the source of payment for intangible services, regardless of the location of the source of the service, would require non-resident suppliers to pay GST on supplies of digital content (e.g. music, films, games), licensed rights (e.g. software), services provided and other intangible rights sourced from outside Australia.A change to the current $1,000 low value threshold before GST applies to imported goods is also planned in association with these changes for intangible services.
Accordingly non-resident suppliers of services or goods should commence preparation for Australian GST to apply to their supplies at source of payment in Australia - including reviewing their pricing and contracts to ensure they are able to recover the additional GST cost from their business and retail customers.
