Please mind that the VAT registration in Australia can become mandatory in certain cases for foreign entities that sell goods and services in this country. Considering that there are numerous tax procedures that have to be respected by companies, our law firm in Australia is prepared to help local and foreign businessmen with advice on this matter.
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What is VAT in Australia?
VAT defines the value added tax typically charged on the sale of products and services on a given territory. Australia does not specifically regulate the VAT, but it applies a similar tax, known as the Goods and Services Tax (GST), which has the same purpose as the VAT, which is why we will refer to the GST by using the general term of VAT.
What is the VAT rate in Australia in 2026?
Compared to many countries, Australia has a low tax base when it comes to the taxation of the goods and services sold on the local market. In 2026, the standard VAT rate applied to the majority of services and goods is 10%.
For what goods and services can I obtain a VAT exemption in 2026?
VAT exemption appears for several goods and services. In the list below, our lawyers in Australia present some of these:
- basic food products;
- certain medical services;
- certain medicines;
- certain childcare services;
- international transportation, etc.
How can I obtain legal representation for VAT registration?
If your company must complete its VAT registration obligations and you need legal representation in the process, you simply need to sign the power of attorney. More about this document is available here.
What are the main services your law firm in Australia can offer international clients?
International and local clients can obtain a large set of legal services from our law firm in Australia. Concerning tax matters, specifically VAT registration, you can rely on us for the following:
- VAT consulting services (we can explain if your business needs to be registered for VAT based on the type of activity it carries or in what circumstance VAT exemptions are offered);
- VAT registration (preparing the registration file, submitting the file with ATO, obtaining the necessary documentation from the institution);
- obtaining the VAT number (which, in Australia, is the Australian Business Number, used for maintaining the connection with the state authorities, including with ATO);
- you can also rely on us for ongoing tax and VAT services, after your business becomes operational.
What is the institution responsible for VAT registration in Australia?
Companies that need to complete their VAT registration obligations must address the Australian Taxation Office (ATO). The procedure can fall under the responsibility of a company representative or it can be delegated to a third party, such as our lawyers in Australia.
What documents are necessary to register for VAT in Australia?
The representatives of companies liable to the payment of the VAT have to present the following papers:
- the company’s certificate of incorporation;
- the extract issued by the Trade Register of the country where the company was incorporated;
- the VAT certificate;
- in the case in which the company will appoint a local representative, such as one of the lawyers working at our law firm in Australia, the power of attorney.
What are the main ways to initiate VAT registration in Australia in 2026 for local businesses?
The Australian tax laws recognize 2 types of VAT registrations: 1) the voluntary registration and 2) the mandatory registration.
In what cases can VAT registration in Australia be necessary for foreign companies?
It must be noted that VAT can be charged for almost all the economic operations that are prescribed under the applicable law and the most common scenarios when a foreign economic operator needs a VAT in Australia are presented in the list below:
- the VAT registration is necessary when the economic operator delivers goods on the Australian market;
- the same applies in the case in which the foreign company imports goods on the local market;
- VAT is imposed for the import of various goods which are then assembled in Australia or installed here;
- businesses are charged with the VAT for the exports of goods from Australia;
- the VAT is applied for those who supply property to other entities (this also includes the rental of real estate properties);
- VAT is charged for entities that provide services (most of the services are charged with this tax).
What types of VAT registration procedures are available in Australia?
Depending on the types of services or goods sold/imported in the country, and the value of the sales, the foreign company will need to conclude different procedures of VAT registration in Australia, by opting for one of the 2 systems presented above, meaning:
- the simplified registration;
- the standard registration.
What entities can complete simplified VAT registration in Australia in 2026?
In the case of non-resident entities, the local tax law provides the possibility of concluding a simplified VAT registration procedure. This is the case of those who sell online services and digital products on the Australian market, and it also includes those who import goods with a low value.
When is it mandatory for a foreign company to register for VAT?
Companies that operate in Australia and which are considered non-resident businesses are required to register for VAT if 2 basic conditions occur at the same time:
- the company develops a business activity that is charged with the VAT in Australia;
- the VAT turnover is of minimum $75,000 (from sales concluded from Australia).
Do non-profit entities need to register for VAT?
Please mind that non-profit entities, such as foundations, can also be required to register for VAT in certain circumstances.
When is VAT registration mandatory for non-profit entities?
In the case in which the foreign entity operates as a non-profit enterprise, the obligation to register for VAT will appear in the moment when a threshold of $150,000 is achieved.
If you need more details on VAT registration in Australia, we invite you to address to our Australian law firm, where you can receive advice on other tax measures applicable to businesses.