GST on imported services and digital products

This page provides information about new legislation that applies GST to international sales of services and digital products to Australian consumers.

Summary

This initiative is part of Tax Time 2017. The relevant Change Advice 2017-012 is located in Controlled Information.  This change advice includes draft forms for feedback. You need to be logged in to access the information.

New laws will apply the goods and services tax (GST) to the international sale of services and digital products provided to Australian consumers.

Some examples of digital products include:

  • downloaded movies
  • downloaded games
  • electronic books.

Some examples of services include:

  • architectural designs
  • legal advice
  • on-line educational courses.

Under the new law, non-resident businesses that sell digital products or services to Australian consumers and meet the registration annual turnover threshold of A$75,000 or more will need to register for GST. Once registered, they need to report and pay GST to the ATO on sales made from 1 July 2017.

Non-resident businesses will have the choice to report and pay GST under either a simplified system or the full GST registration system.

Under the simplified GST system for non-residents, non-resident suppliers of services and digital products will be able to register report and pay GST online.

Alternatively, to register under the full GST registration system, your clients would need to:

Status

We are developing detailed advice on how businesses can meet their new obligations. We are also designing a simplified GST system to make it easier for non-residents to register for GST.

Key Dates

The new law applies from 1 July 2017. Businesses will be able to register using the new Simplified GST System for Non-Residents from 1 April 2017 and report and pay on the new system from 1 July 2017.

Links and documents

Consultation (meetings, seminars, workshops)

We will consult with software developers on the software changes needed to allow overseas businesses to comply with the new law.

2016

Feedback and questions

You can send feedback and questions to:

All feedback and responses are published as available.