Australia Tax Agency Issues Guidance on GST Reverse Charge Mechanism on Offshore Purchases

The Australian Taxation Office July 26 issued guidance on the GST reverse charge mechanism in the case of offshore purchased goods. Topics covered include: 1) an explanation of the mechanism and the applicable 10 percent reverse charge GST; 2) rules, conditions, and transaction circumstances required for its application; 3) liability for low value goods, which are goods valued at less than A$1,000 (US$694); 4) applicability in the case of transactions between resident and non-resident business branches, with examples; 5) applicability in the case of sales made with no or insufficient consideration; 6) allowable exemptions and credits; 7) required conditions to ...