eBay may block Australian buyers over GST collection

eBay has responded to the Australian Government initiative to collect GST for all internet purchases by proposing to block Australians from using eBay on the grounds that the changes demanded by the ATO are unworkable. While the Australian Treasurer has stated that this measure is to ensure local Australian businesses are not disadvantaged by the availability of overseas goods, the bill does not address that goods not available in Australia will also be taxed. The cost to businesses around the world to collection and be audited for GST may be excessive enough for many businesses to simply block Australians from purchasing. Local stores including Harvey Norman and Premier Investments are being blamed for supporting this change providing the government a platform to reap more taxes. Should this occur, and eBay does block Australian buyers, then the Australian government may find itself facing a backlash from millions of voters that it is not in the position to manage.