Taxation and GST

E-business is not exempt from taxation. You will need to comply with tax obligations which are relevant to your e-business. Issues which may affect your tax obligations include the type of organisation you have, whether you have tax agreements negotiated between Australia and other countries, the source of income, whether the organisation is a permanent establishment, and how various tax and corporations provisions apply to your business. This is a complicated legal area and you should obtain qualified legal tax advice for your e-business.

Generally, GST will apply to Internet sales for goods and services (which are not supplied in electronic form) if the supplier and the recipient are both resident in Australia, unless the goods or services are specifically listed as exempt under the GST Act.

GST will generally not apply if a supplier resident in Australia sells goods or services to a recipient outside Australia. However, the Australian supplier must be able to determine the location of the recipient for the transaction to be GST-free.

GST will apply in certain circumstances for goods and services received by a recipient resident in Australia from an off-shore supplier. The rules are complex and you should seek advice.

If GST applies to your e-business sales, the prices that you display on your website must include the GST component in the total price. You must also provide the recipient with a tax invoice if it is requested.

GST may also apply to other incidental transactions relating to your e-business. It is therefore important to obtain qualified legal tax advice on all matters concerning your e-business and taxation.