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.
Follow us on LinkedIn to keep up with the latest VAT news