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Adobe Australia drops SaaS tax dodge

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Wayne Chapple
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The world's ongoing efforts to get multinational technology companies paying and collecting the proper amount of tax has claimed another win, with Adobe advising it will add Australia's Goods and Services Tax GST - think VAT, British readers and sales tax in North America to the cost of its Creative Cloud.

Australia charges 10 per cent GST on most goods and services.

But imports valued at less than AU$1,000 have been exempt from the tax, partly because it was felt too expensive to bother collecting it on physical goods.

But digital goods are another matter entirely and Australia's government floated the idea of tech companies collecting GST from online purchases by Australians, no matter where the transaction takes place.

Technology companies argued that they're exempt because their products are only consumed on Australian soil, rather than sold down under.

But Australia's cash-strapped government thought that argument is flimsy and therefore legislated to remove GST exemptions.

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Wayne Chapple
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