GST is an indirect tax applied to the sale of goods and services for domestic consumption. GST is paid by consumers but is remitted to the government by the businesses selling the goods and services. Like Value Added Tax (VAT), companies may be required to register for GST depending on the country they are trading in.
Why is GST registration required?
If your business sells goods or services in foreign countries, it may have an obligation to comply with GST or other indirect tax laws in the country where your transactions occur. This obliges your business to register for GST in the country of the transaction, and, in most cases, you will need to account for GST on supplies.
The types of transactions that can oblige you to GST register include:
- Importing goods into the country for sale
- Buying and selling goods locally
- Storing goods in a warehouse, as consignment stock or in a fulfilment centre
- Organising an event in the country (specifically if there is paid admission).
GST is commonly applied in Australia, Canada, India, New Zealand, and Singapore. However, other jurisdictions have adopted GST, and each country has differing registration requirements and thresholds.
If a business does not GST register, it may face financial penalties and interest charges for any taxes not reported or paid late. Therefore, you must understand the legal requirements for GST registration in each country you’re trading in and register immediately if you do have a requirement.
Click here to find out the GST thresholds for the country you’re trading in. Alternatively, get in touch, and we can help you understand these rules and requirements for your business.
GST registration from Fiscal Solutions
Fiscal Solutions provide an efficient GST registration service which:
- Enables foreign exporters to act as the importer of record and, depending on the country of import, may allow them to import their goods at a price that’s different from the ultimate selling price to their customer. This means that import duties are often calculated at lower values, providing real cost savings.
- Provides foreign traders with an all-round GST registration and compliance service, including information on how to stay compliant.