The countries and territories in Australia and Oceania exhibit a diverse range of tax systems, with some jurisdictions operating well-established VAT or GST frameworks, while others rely on alternative forms of taxation or receive substantial international aid.

Widespread Adoption of VAT/GST:
Several countries in the region, including Australia, New Zealand, Vanuatu, Fiji, Tonga, and Samoa, have implemented Value Added Tax (VAT) or Goods and Services Tax (GST) systems. These taxes typically apply to the supply of goods and services within the country as well as to imports, while exports are usually zero-rated. Standard VAT/GST rates in the region generally range from 12% to 15%.

Registration Thresholds and Filing:
Registration thresholds for VAT/GST vary widely, with some nations (e.g., New Zealand) requiring registration once a turnover of NZD 60,000 is exceeded, while others (e.g., Vanuatu) set thresholds at VUV 4 million. Filing frequencies are often monthly or quarterly, depending on the jurisdiction and turnover level.

Simplified Systems in Smaller Nations:
Some microstates and smaller island nations such as Tuvalu, Micronesia, and Marshall Islands do not currently have VAT or GST systems. Their governments rely more heavily on import duties, service taxes, business licenses, or foreign aid for revenue generation.

Digital and Cross-Border Rules:
While larger economies like Australia and New Zealand have developed frameworks to tax digital services provided by foreign businesses, most other nations in the region do not yet impose specific digital services taxes. Nonetheless, cross-border goods and services are typically taxed through import VAT or customs duties.

Challenges and Considerations:
Tax administration capabilities vary significantly across the region. While Australia and New Zealand have highly digitized and sophisticated systems, others may face limitations in enforcement and compliance infrastructure. Businesses operating across multiple jurisdictions should pay close attention to local rules, registration procedures, and compliance timelines to avoid penalties.

Recommendation for Businesses:
Due to the regional variations and frequent regulatory updates, it is strongly recommended that businesses consult official government portals or seek professional tax advisory when operating in or expanding to these markets.