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Old 02-05-2007, 08:29 AM  
rowan
Too lazy to set a custom title
 
Join Date: Mar 2002
Location: Australia
Posts: 17,393
In AU you're supposed to collect GST if the person paying is an Australian resident or company. I haven't seen an official ruling but I have seen interpretations that say that using a third party processor doesn't exempt you from this requirement, even though it's located outside of Australia and charging in another currency!

As you can imagine, there are several technical hurdles to actually implementing this... at least a blanket "all must pay GST" ruling is a bit simpler. Canadian paysites will probably just have to absorb that cost, because adding an obvious GST charge or upping the price may result in a net loss of sales.

Since Canadian paysites will typically be billing in US dollars one question springs to mind: do you pay the govt 6% of your gross payout at the time it's converted to Canadian Dollars, or the Canadian Dollar equivalent of 6% of the USD amount at the time of the transaction?
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