I am in the midst of starting my first online business, which will be selling information and digital products. As I am new to designing web pages etc and can’t afford a professional I have been buying course/information off the net. I recently have signed up to Net Tuts for $9pm and bought several website books frome Sitepoint (both I have found useful as a newbie).
I noticed that both companies are Australian. One reason why I chose them as I was happy to support Australian companies. However neither of them included GST in their costs. I am going to the trouble of setting up my website to ask any purchasers for which country they live in and then if they choose Australia they will be invoiced the same amount – but show GST is included.
Is there some way around having to charge GST in this situation? I know that Net Tuts has over 10,000 subscribers (according to their website) so that would put them way above the $75k rule.
I am wondering if there is some rule about international transactions etc that I don’t know about that could save me some of the coding hassles I am having.
I had a look and I think you will find that both of those businesses you mentioned are operating out of servers based in the US irrespective of the home country of company involved.
Internet based businesses and taxation residency is a tricky area and you should consult a professional before making any decisions however for an Australian Resident Business with your e-commerce site hosted in Australia (irrespective of .com, .com.au or other extension) your treatment is legal ie Aus residents pay GST all other countries do no, i would normally make your Aus clients pay list + GST ie 10% more than international customers but that is your choice.
If you want to know more about taxation residency of e-commerce businesses send me an e-mail firstname.lastname@example.org but it is a highly specialised field (which i work in all the time) and I will charge for my time