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Sales tax shake-out continues

Sales tax shake-out continues

The number of computer industry suppliers seeking accreditation for sales tax exemptions continues to fall far short of official expectations.

Even though the September 1 deadline passed three weeks ago, only 3000 manufacturers and wholesalers have come forward for accreditation instead of the 5000 anticipated by the Australian Tax Office (ATO).

One explanation may be that many have decided accreditation is an unnecessary business luxury.

"Accreditation is not mandatory and a number of people may have taken the view they will buy tax inclusive," said ATO assistant commissioner, withholding tax, Mike Cebalo.

Another possibility is the new sales tax system has already caused a shakeout in the industry.

"We have a feeling that some of the businesses that have been on record as being in the industry are no longer operating," Cebalo said.

"From the ATO's perspective, Cebalo said the shortfall in numbers was irrelevant "provided the industry is operating satisfactorily and tax is being accounted for."


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