Australia was one of the first countries to apply GST to imported digital services — the so-called “Netflix tax.” Here’s how it applies to sellers both inside and outside Australia.
Last updated: June 2026
If you’re an Australia-based business selling ebooks, software, apps, or online courses to Australian consumers, standard GST rules apply: once your GST turnover exceeds A$75,000, you charge 10% GST on those sales like any other taxable supply. Below the threshold, no GST is charged unless you’ve registered voluntarily.
Since 2017, Australia requires offshore suppliers of digital products and services to Australian consumers to register for and charge GST, regardless of where the seller is based — with a A$75,000 registration threshold that applies to the offshore seller’s total sales to Australian consumers, not a lower or nil threshold as with some other countries’ digital VAT regimes.
This affects streaming services, SaaS subscriptions, ebook platforms, and online course providers based overseas selling to Australian consumers — they must register with the ATO (often through the simplified GST registration system for non-residents) once their sales to Australian consumers cross A$75,000.
If your customer is a GST-registered Australian business, and you’re an offshore supplier, the sale may be treated as a business-to-business supply where the Australian business self-assesses GST under the reverse charge, rather than the offshore seller charging GST directly — provided the business gives you their ABN and confirms their GST-registered status. Always obtain and verify this before treating a sale as B2B.
Yes, if your sales of digital products to Australian consumers exceed A$75,000, regardless of where your business is based — this is specifically what the offshore/Netflix tax rules require.
Often yes for larger marketplaces, which may act as the registered supplier and collect GST on your behalf under Australia’s electronic distribution platform rules. Check your specific platform’s terms, since this varies.
Broadly, anything delivered electronically with minimal human involvement — software, apps, ebooks, streaming, and pre-recorded online courses. Live one-to-one coaching is typically treated as a standard service instead.
If the business provides a valid ABN and is GST-registered, the sale may be treated as B2B, with the business self-assessing GST rather than you charging it — verify their status before applying this treatment.
No — both use the same A$75,000 threshold, though it’s measured over your sales to Australian consumers specifically for offshore suppliers.
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