Australia: GST Guidance for Reverse Charge on Cross Border Purchases

Spread the love

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

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

Join us!

Subscribe to our monthly newsletter
download dac7 report

Free Download - DAC7 Report

New DAC7 reporting obligations for online platforms and marketplaces came into effect! Learn all about it in our DAC7 report

You have Successfully Subscribed!