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Australia: Your Digital Games (and Movies!) Could Be About to Jump In Price
dotarray writes with a snippet of news from Australia about expanded taxation for digital goods. From Player Attack comes the gist: Australians really are about to start paying more for digital services — including Steam games — as Federal Treasurer Joe Hockey has confirmed plans to introduce a 'Netflix tax' in this week's Federal Budget. As mentioned last week, this is not a new tax, but an extension of Australia's current Goods and Services Tax to include digital services, adding 10% to virtual items and services purchased online. Details have not yet been revealed, but potential services include not only Steam games but also Netflix subscriptions and even Uber trips.
The shop down the road can't avoid sales tax.
The online shop based in Australia can't avoid sales tax.
The online shop based outside Australia can avoid sales tax.
This puts Australian businesses at a disadvantage, i.e., the tax regime fucks your own people.
So the choices are:
* level the playing field by abolishing sales taxes (the market fundamentalist/tax haven model)
* level the playing field by requiring individuals to declare and pay the sales tax (the US model)
* level the playing field by requiring foreign companies to collect and pay tax
Most governments go for the latter.