Australian goods and services tax collection will be implemented by international online retailers when customers buy products worth $737 or less beginning 1 July.
The Australian Government has taken this decision to offer fair trading for all retailers and ensure same tax treatment on low-value goods purchased by consumers in the country.
According to the Australian Taxation Office (ATO), the new rule covers international retailers with a GST turnover of $55,303 or more per year.
The government agency will provide a simplified system for retailers to register, lodge and pay Australian GST.
Retailers only need to report total taxable sales and GST, and pay once each quarter through this system.
ATO assistant commissioner Kate Roff said: “Any businesses that are having difficulty meeting their obligations should contact the ATO as soon as possible.
“Businesses that do the right thing and register for GST can be assured that we will, where appropriate, pursue businesses that do not.
“The ATO has the ability to use financial data tracking, customs data and online investigations to identify those that are not meeting their taxation obligations. Businesses that decide not to comply will face penalties.”
ATO will also support retailers who are taking measures to comply with the rule by assisting them to navigate the collection and remittance process.
The taxation rule also involves re-delivery service providers such as mailbox re-delivery and personal shopping services. Consumers using GST-registered re-deliverers will pay the applicable GST to them.
In response to the new GST rules, major retailer Amazon has already revealed plans to prevent Australian customers from purchasing from its US store and redirect them to the Australian site, reported The Guardian.