GST and internet-based businesses

The status of eBay Australia as a Switzerland-registered company that does not issue invoices to Australian merchants with GST included has forced the ATO to look at the question: if a transaction happens in cyberspace, which government collects the tax? (via Mark Jones)

The Australian looks at the issue from 2 angles: firstly, whether eBay should pay GST in Australia and secondly to determine if sellers are avoiding GST or were wrongly claiming GST credits.