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Online shopping giants fail to keep up with GST

A Marks & Spencer invoice for a $50 shirt on July 9. In response to questions from Fairfax Media, the $3.3 billion a year retailer said "we will be paying the GST for all Australian orders". It would not elaborate on whether it had already started collecting GST, or if customers will be charged for this, potentially setting it up for a multi-million dollar bill at tax time. While industry titans Amazon and eBay have made well-publicised transitions to the new GST framework, the lack of consistency across the online sphere from smaller operators highlights the challenge the Australian Tax Office faces in policing the sector. US based electronics stores, vinyl retailers and sports shops have also failed to keep up with the legislative change as the ATO vows to match tax receipts and chase down offenders. Popular US vinyl distributors have listed a tax of "0 per cent" on their invoices for Australian orders while New York based electronics exporter B&H also noted a "sales tax" of $0 for "thousands of satisfied Australian customers." Some operators, including UK luxury fashion retailer Net-A-Porter, have got their act together in time. It has a 10 per cent tax on a pair of $279 earrings clearly labelled at checkout. So too a Kogan compact robot vacuum, worth $199, now $217 with 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.

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