# GST changes to imported goods now delayed until 1 July 2018



## Jack Malarkey (Jan 11, 2016)

Certain proposed amendments to the GST law relating to imported goods costing less than $1,000 have had their date of effect postponed to 1 July 2018 (rather than 1 July 2017).

However, the application of GST to digital imports (dubbed the Netflix tax) is still from 1 July 2017.

See http://www.afr.com/news/policy/tax/online-shoppers-get-12month-gst-reprieve-20170619-gwtwzg


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## Instyle (Oct 18, 2014)

Uber would be a digitally imported service? Electronic booking facility for the customer (driver).


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## Jack Malarkey (Jan 11, 2016)

Instyle said:


> Uber would be a digitally imported service? Electronic booking facility for the customer (driver).


I would have thought so.

I am wondering whether Uber is planning to advise us of GST changes just before they take effect on 1 July 2017.


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## mmjljhlkjhlk (Mar 27, 2017)

Instyle said:


> Uber would be a digitally imported service? Electronic booking facility for the customer (driver).


B2B exempted from Netflix tax, that is why uber now enforcing abn and gst registration


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## Jack Malarkey (Jan 11, 2016)

mmjljhlkjhlk said:


> B2B exempted from Netflix tax, that is why uber now enforcing abn and gst registration


Interesting. It strikes me as an anomalous exemption as a value added tax (or GST) is by its nature also intended to apply to business to business transactions.


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## UberDriverAU (Nov 4, 2015)

Jack Malarkey said:


> Interesting. It strikes me as an anomalous exemption as a value added tax (or GST) is by its nature also intended to apply to business to business transactions.


It's not that anomalous when you think about it. With B2B transactions you get output tax debits offset by input tax credits, so no net tax has been collected. Including B2B transactions makes sense within an enclosed system, but excluding inbound transactions makes sense to me. It cuts down on the compliance costs and effort involved in dealing with overseas entities who aren't as easily forced to comply with Australian tax laws. The ATO might find itself in a position where it has to give GST credits but isn't able to collect the offsetting GST debits from the overseas supplier. That's a worse position than simply making such transactions GST-free to start with. B2C transactions don't involve GST credits, so there's no risk to revenue there.


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## Jack Malarkey (Jan 11, 2016)

UberDriverAU said:


> It's not that anomalous when you think about it. With B2B transactions you get output tax debits offset by input tax credits, so no net tax has been collected. Including B2B transactions makes sense within an enclosed system, but excluding inbound transactions makes sense to me. It cuts down on the compliance costs and effort involved in dealing with overseas entities who aren't as easily forced to comply with Australian tax laws. The ATO might find itself in a position where it has to give GST credits but isn't able to collect the offsetting GST debits from the overseas supplier. That's a worse position than simply making such transactions GST-free to start with. B2C transactions don't involve GST credits, so there's no risk to revenue there.


Thanks, UberDriverAU. You've persuaded me.


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## BatteryGuru (Jun 13, 2017)

is there any Tax account service specifically for Uber drivers whom understands everything that make my Tax return much easier?


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## fields (Jul 11, 2016)

UberDriverAU said:


> It's not that anomalous when you think about it. With B2B transactions you get output tax debits offset by input tax credits, so no net tax has been collected. Including B2B transactions makes sense within an enclosed system, but excluding inbound transactions makes sense to me. It cuts down on the compliance costs and effort involved in dealing with overseas entities who aren't as easily forced to comply with Australian tax laws. The ATO might find itself in a position where it has to give GST credits but isn't able to collect the offsetting GST debits from the overseas supplier. That's a worse position than simply making such transactions GST-free to start with. B2C transactions don't involve GST credits, so there's no risk to revenue there.


I have no problem with overseas b2b being GST free. Businesses can claim a GST input credit from Australian suppliers, in essence this is the equivalent of GST free.

Uber and others like airbnb are supplying the consumer directly, they should be liable for GST.


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## UberDriverAU (Nov 4, 2015)

fields said:


> Uber and others like airbnb are supplying the consumer directly, they should be liable for GST.


The ATO says no, drivers and hosts are the suppliers. In the case of Airbnb that's actually true because a host can set prices and impose conditions. That's not so true for Uber who rigidly controls prices and sets terms on a "take it or leave it" basis.

Jack Malarkey, what do you think of the following idea? Uber being deemed the supplier for all Uber trips and having to remit GST directly to the ATO. GST registration would then be _optional_ for drivers. They could either not register if they didn't want to worry about the BAS paperwork burden, or could register and claim GST credits for their Uber related business expenses.


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## Jack Malarkey (Jan 11, 2016)

UberDriverAU said:


> Jack Malarkey, what do you think of the following idea? Uber being deemed the supplier for all Uber trips and having to remit GST directly to the ATO. GST registration would then be _optional_ for drivers. They could either not register if they didn't want to worry about the BAS paperwork burden, or could register and claim GST credits for their Uber related business expenses.


UberDriverAU, I think there's merit in your idea given that there would under present arrangements be significant administrative and compliance costs in imposing GST on individual drivers, with associated revenue shortfalls arising.

Your approach is perhaps conceptually similar to the imposition of fringe benefits tax on employers for non-salary benefits provided to employees.

The challenge would be to come up with a policy principle that can be reflected in legislation without needing to refer to specific entities such as Uber.

I suspect there would be concerns in some quarters about giving drivers the option of registration as this would lead to 'adverse selection' (cherry picking).

The environment in which I could see your approach getting up would be if the Government embarked on another package of reforms directed to reducing small business compliance costs.


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## Jack Malarkey (Jan 11, 2016)

Here is the Tax Office's description in its Small Business Newsroom of the business to business exemption to the new digital imports regime (the 'Netflix tax'):

*Buy services or digital products from overseas?*









*19 June 2017*

From 1 July 2017, GST will apply to imported services and digital products.

If you are an Australian GST registered business, you will not be charged GST on your purchases from a non-resident supplier if you:


provide your ABN to the non-resident supplier
state you are registered for GST.
Examples of imported services and digital products from overseas include:


digital products such as streaming or downloading of movies, music, apps, games and e-books
services such as architectural, educational and legal.
If you are purchasing imported services and digital products only for your personal use, you should not provide your ABN.

(https://www.ato.gov.au/Newsroom/sma...gital-products-from-overseas-/?sbnews20170628)


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## Jack Malarkey (Jan 11, 2016)

UberDriverAU said:


> Jack Malarkey, what do you think of the following idea? Uber being deemed the supplier for all Uber trips and having to remit GST directly to the ATO. GST registration would then be _optional_ for drivers. They could either not register if they didn't want to worry about the BAS paperwork burden, or could register and claim GST credits for their Uber related business expenses.


See my original post about the approach being taken under the new GST in India: https://uberpeople.net/threads/new-gst-in-india-cab-aggregators-need-to-register.179763/.

It has some significant similarities to the suggestion by UberDriverAU.


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