Level 4, 20 Grenfell Street,
Adelaide SA  5000

Phone: 08 8231 1888
Fax: 08 8231 3888

Email: admin@crase.com.au





 
Latest News
Hot Issues
Small businesses may ‘collapse under strain of payday super’, IPA warns
ATO’s hands tied with scrapping on-hold debts, expert says
What Drives Your Business Growth and Profits?
Australian Taxation Office (ATO) shifting to firmer debt collection activity
Why employee v contractor comes down to fine print
Sharing economy reporting regime for platform operators
Countries producing the most solar power by gigawatt hours
Illegal access nets $637 million
Accessing superannuation benefits.
Does your business have a company Power of Attorney?
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
GrantConnect
2 in 3 SMEs benefit from instant asset write-off, survey reveals
Updated guidance on R&D claims
Do you know how to recover debts?
Wheat Production by Country
Types of small business benchmarks
What is a Commercial Lease?
ATO warns advisers against suspect R&D tax claims
The year of workplace law upheaval
How to Resolve Invoice Payment Disputes
Raft of revenue tweaks in MYEFO to raise millions
The Countries that Export the Most Wine in the World
Record low invoice values ‘reveal inflation sting’
A 2023 Advent Calendar for our clients
Average refund plummets by $580, total payout down $5.4bn
FBT – Christmas Parties and Taxi Fare/Rideshare
Articles archive
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Watch out for charges with incoming GST laws.

Accountants and their clients have been advised to pay close attention to the commencement of GST on low value imported goods that could see Australian retailers incorrectly charged by overseas suppliers.



       


 


From 1 July 2018, GST will apply to sales of low value imported goods, valued at $1,000 or less, to consumers in Australia, in a bid to ensure that such imported goods receive the same treatment as goods purchased domestically.


Speaking to Accountants Daily, Crowe Horwath partner, Mark Reynolds, said the implications for Australian businesses would be mainly two-fold, namely for retailers who use drop shipping, and registered retailers who may be incorrectly charged GST by their overseas suppliers. 


As the changes are meant to target consumers, Australian retailers registered for GST should not be charged GST on low value goods imported for use in their business, and will need to provide their ABN and state they are registered for GST to their supplier.


“As an Australian business, one of the issues will be making sure you don't get charged GST incorrectly and the reason for that is the overseas suppliers, if they have to register for GST, can get what is called a simplified GST registration and that means they don't have to get an ABN and they can't claim input tax credits but they don't have to issue a tax invoice,” said Mr Reynolds.


“So if I’m dealing with an overseas supplier who is charging GST but they don't have an ABN and they don't give you a tax invoice, I can't claim any input tax credits. As an Australian business, I need to be advising the offshore supplier that I'm registered and have an ABN — don't charge me GST because there is a risk there if I don't get a tax invoice, I can't claim a credit.


“If they charge GST by mistake, our clients in Australia can't get it back and they can't claim a refund in their BAS, they have to go to the guys overseas and say, ‘you made a mistake, can you please adjust the price’, and if you are not dealing with them on a regular basis, it is going to be very difficult.”


According to the ATO, drop shipping refers to goods sold to Australian consumers by Australian retailers who house these goods overseas at the time of sale, and these transactions are currently not subject to GST.


“It's not uncommon to warehouse stock in China, Singapore, or somewhere in Asia, and then sell it to a client but because it is mailed to a client through the post, it was not subject to GST but now of course that will be so you've got an issue with Australia suppliers who might be delivering goods from overseas into Australia and they will have a GST implication,” said Mr Reynolds.


“From an Australian advisers perspective we have to make sure our clients here know what the law is and making sure they are not registering when they don't have to, and registering when you need to and obviously making sure they are not getting charged GST when they shouldn't be.”


 


By: Jotham Lian
​18 JUNE 2018
www.accountantsdaily.com.au




16th-July-2018
      Site By AcctWeb