Digital Taxes Down Under: Australia’s GST

What are digital products?

“This includes digital products such as streaming or downloading of movies, music, apps, games, e-books as well as services such as architectural or legal services.”

What is GST?

How GST works

What are the digital tax laws in Australia?

B2C

  • Register for GST in Australia
  • Charge 10% GST on all of your B2C sales there
  • File and pay that tax to the ATO

B2B

  • Register for GST in Australia
  • Charge 10% GST on all sales there
  • File and pay that tax to the ATO

Do I need to register my business for GST in Australia?

Electronic Distribution Platforms (EDP) and Australian GST

  • Do not count toward your annual sales threshold
  • Are not your GST responsibility!

How do I register for GST in Australia?

Simplified GST

  • You don’t have to prove your identity
  • You use an ATO Reference Number (ARN) instead of an ABN (Australian Business Number)
  • You cannot claim GST credits
  • You cannot issue tax invoices or adjustment notes
  • You must lodge your GST returns and pay GST quarterly
  • You can pay electronically via SWIFT bank transfer or credit card.

Standard GST system

  • You must supply various evidence of your identity
  • You get an Australian business number (ABN) — and this allows you to issue legal tax invoices
  • You can claim input tax credits
  • You aren’t limited to quarterly accounting periods
  • You use activity statements to report GST

How can I monitor B2C vs. B2B, my annual sales threshold, and collected GST all at once?

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