GST 2016

Applying the GST to imported digital products and services: Problems and solutions

Source: The Tax Specialist Journal Article

Published Date: 1 Feb 2016


The Australian Government has released exposure draft legislation that would result in the scope of the Australian goods and services tax being extended to consumer imported digital products and services. The draft seeks to amend GST law primarily by altering the connected with Australia test contained in s 9-25 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth). Other important changes are also proposed. This extension of the GST would come into effect on 1 July 2017. Imposing a GST or a value added tax on consumer imported digital products and services is a relatively new and still developing area of law.

This article discusses the current law and proposed amendments and then compares them with foreign models already implemented. In concluding part 1, the problems with the exposure draft are identified. Part 2 then suggests two proposals that could be implemented to rectify the identified issues.

Author Profile
Stephen May

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GST 2016

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