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Online shopping giants fail to keep up with Australia's GST

A Net-A-Porter invoice showing the GST Others such as Matches Fashion have used the GST as a marketing tool, telling customers "it's now even easier to shop in Australia...we will pay the new 10 per cent GST for you", as they proceed to checkout. Need Supply Co, an emerging US fashion warehouse, puts the onus back on customers telling Australian customers that "you may be responsible for import duties and taxes on your additional order". "We suggest that you contact your local customs office for additional information." The Tax Office has ordered online stores to collect GST on their customers' behalf. There is no mechanism by which shoppers are able to contribute 10 per cent of their purchase independently. A spokesman warned businesses that chose not to comply could face 75 per cent penalties on top of unpaid GST, Australian payments being garnished out of their accounts and debt recovery action in foreign courts. "The ATO cannot publicise action taken in individual cases due to privacy laws [but] businesses that do the right thing can be assured that we will, where appropriate, pursue businesses that don't do the right thing," he said. A spokeswoman for Treasurer Scott Morrison said offenders could face 12 months imprisonment. As of 10 July, 721 offshore businesses registered for low value imported goods. "All major suppliers have already registered through the simplified or normal GST process, and there are a number of smaller businesses continuing to register," she said. "The government's actions to level the playing field for Australian businesses are being implemented in the same way as other taxation measures, whether they affect businesses or individual taxpayers." Online GST revenue is expected to exceed A$500 million in its first year, according to figures from market research firm

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