Australia: GST Guidance for Reverse Charge on Cross Border Purchases

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The Australian Taxation Office gave qualifications for transactions that are coverable under the GST reverse charge mechanism for items purchased from outside Australia’s territories.


The guidance covers:


  • The applicability of 10% reverse charge GST and the definition of this mechanism
  • Regulations, prerequisites, and the transaction details needed for its application
  • Products worth less than AUD 1,000 are considered low-value goods and might be subject to GST liability under the reverse charge rule.
  • The application in the context of commercial transactions involving residents and non-residents
  • Sales for no consideration or insufficient consideration between associates
  • GST credits and exceptions
  • The requirements that must be met to use the reverse charge GST treatment
  • The obligations for maintaining records and filing reports.



Source: ato.gov.au

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