Adobe to add GST for Aussie SaaS users from December

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Adobe to add GST for Aussie SaaS users from December
Treasurer Scott Morrison.

Follows introduction of 'Netflix Tax'.

Australian subscribers to Adobe's software-as-a-service offerings like Creative Cloud will be charged the national goods and services tax (GST) from December 1, the company said today.

The move follows the introduction of new laws in May that force overseas vendors selling digital products into Australia to add the 10 percent GST onto their sales.

The so-called 'Netflix Tax' legislation captures products including digital music, applications, games, e-books, digital copies of movies as well as consultancy and professional services.

It applies to foreign vendors selling more than $75,000 worth of products locally.

The laws apply from July 1 next year, but Adobe said it would start charging GST on its SaaS products from December 1 2016.

When asked to explain the discrepancy, Adobe would only say its timing was "in accordance" with the Australian Tax Office. The ATO confirmed to iTnews that the GST changes would apply from next July.

Adobe SaaS customers with month to month plans will see the GST introduced in the first bill they receive after December 1 2016. Those with annual subscriptions that tick over before December 1 will have the GST applied at the end of their yearly term.

In September consumer group Choice brought to light existing powers under the Telecommunications Act that would allow the government to block access to overseas websites that don't collect the GST on products sold in Australia.

However, the federal government denied it had plans to use the powers that have been around "for decades".

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