Online overseas companies selling Australian product but avoiding GST?

j5ive on 21/03/2016 - 16:01

How does this work exactly? Expedia etc, they are selling a service in Oz and have a .com.au, but pay no tax. Its pretty deceptive.

Travel

Comments

  • [Deactivated] on 21/03/2016 - 17:03

    They own a .com.au domain, but the service is provided from outside Australia and your credit card is charged from outside Australia.

    • j5ive on 21/03/2016 - 22:06

      I thinks what got me. Didn't there used to be regulations on who could have a .com.au?

      • retiredfeline on 21/03/2016 - 22:26

        An ABN, but so what? It's trivial to redirect to a .com site after entry. Look at what happens when you go to http://paypal.com.au

      • [Deactivated] on 22/03/2016 - 00:05

        Yeah, a local business owns it. But, that is all that business does; own and lease the domain to the overseas business.

  • whooah1979 on 21/03/2016 - 17:20

    Expedia etc, they are selling a service in Oz and have a .com.au, but pay no tax. Its pretty deceptive.

    their liable to pay tax (company tax) for services sold in oz, and not sold into oz. saying that they're avoiding gst is deceptive. gst is for consumers.

    • j5ive on 21/03/2016 - 22:05

      Thats why there was a question mark in my title.

      So a consumer doesn't pay any GST when they order from Expedia. Expedia pays the provider. Guessing less a large fee. Someone has to pay GST somewhere right?

      • whooah1979 on 21/03/2016 - 22:20

        So a consumer doesn't pay any GST when they order from Expedia.

        oz consumers doesn't pay gst to overseas entities unless the entity has an agreement with the fed gov to collect gst for them.

        Someone has to pay GST somewhere right?

        only for tangible imports and more than the lvt.

      • [Deactivated] on 22/03/2016 - 00:06

        If I buy a European tour on Expedia and the tour is conducted in Europe, why should anyone pay GST?
        The service is not provided here. Expedia isn't here either, unlike a local travel agent who would be liable to collect and pay GST.

        • j5ive on 22/03/2016 - 05:35

          Agree. But for an Australian hotel or car hire?

        • whooah1979 on 22/03/2016 - 06:22

          @j5ive:

          Agree. But for an Australian hotel or car hire?

          only if the service was sold in oz by a local entity.

          why are you so concerned about gst? do you want to pay 10% extra the next time you book a room or hire a car in oz?

        • [Deactivated] on 22/03/2016 - 10:16

          @j5ive:
          Probably a loop hole in the tax system?
          Possibly the hotel may pay it or something, ask them?

        • j5ive on 22/03/2016 - 22:16

          @whooah1979:

          More that I want to claim it back if I have paid it on a business trip. Expedia won't even provide me an invoice.

        • whooah1979 on 22/03/2016 - 22:52

          @j5ive:

          Business trip? Why don't you deduct the whole amount?

Login or Join to leave a comment
Login Join