This week Amazon Web Services (AWS) announced they will now be charging GST in certain areas of July 1 2017. This is due to Australia recently introducing legislation to impose GST electronic services sold by non-resident suppliers. You might have also heard of these changes referred to as "The Netflix Tax", aimed to level the playing field of taxes payable by Local and International suppliers on good and services to Australian customers.
As part of the change, AWS will be charging GST on cloud services provided to individual (non-business) customers. However, GST will not be added on cloud services provided to business customers who are GST registered.
To determine the difference in customers, AWS relies on you to provide your ABN if you are GST registered. In their email (see below), they stated "Provided you have uploaded a valid ABN, Amazon Web Services, Inc. will not apply GST on most future purchases of taxable services under the relevant account".
If you are an AWS customer, we advise you to log into this page and update your information.
Disclaimer: This article is not offering tax advice. For tax information and advice, please see your Tax Accountant.
Get updates, tips and industry news delivered directly to you