E-COMMERCE
E-COMMERCE
Online retailers selling into Australia: Register for GST now to avoid penalties
THE Australian Taxation Office( ATO) has outlined actions it can take to support complying online retailers from unfair disadvantage if competitors do not comply.
From July 1 this year, Goods and Services Tax( GST) will apply to the sale of low-value goods sold to consumers in Australia valued at A $ 1,000( US $ 755) or less. International retailers must register online if they have a GST turnover of A $ 75,000 or more in a 12-month period.
The ATO has reported a positive response to date and will continue to offer full support to registered online retailers to ensure they are prepared for the new changes.
ATO assistant commissioner Adrian Preston-Loh said this would include taking action to ensure these businesses were not commercially disadvantaged by non-compliant competitors.
“ Our preferred approach is to continue working with businesses to help them comply. However, we will make sure that any businesses that have made a genuine attempt to meet their taxation obligations will not be disadvantaged,” Preston-Loh said.
“ Businesses that decide not to comply may face penalties.”
The ATO will use financial data tracking, customs data and online investigations to identify those that have not met their obligations. These businesses may face actions including: n Compulsory registration for GST on behalf of the business; n Imposing an additional 75 % administrative penalty, which then becomes legally payable; n Intercepting funds from Australia destined for the business; n Registering the debt in a court in the business’ country; and n Requesting the taxation authority in the business’ country to recover the debt.
The new law taxes consumption in Australia and ensures GST will now apply equally to imported and domestically sourced goods. It will not affect any existing trade or customs tariff requirements for retailers selling goods to Australia.
“ The new taxation measure will provide fairer trading for all retailers and ensure low-value goods purchased by consumers in Australia have the same tax treatment, no matter where they are purchased from,” Preston-Loh said.
Registration is available at ato. gov. au / GSTSimpleReg. ra
Daraz Group joins Alibaba ecosystem
DARAZ GROUP— an e-commerce company in Pakistan, Bangladesh, Sri Lanka, Myanmar and Nepal— has been fully acquired by Alibaba to become a member of Alibaba Group.
With the acquisition, Daraz will be able to leverage Alibaba’ s leadership and experience in technology, online commerce, mobile payment and logistics to drive further growth in the five South Asian markets that have a combined population of over 460 million, 60 % of whom are under the age of 35.
Bjarke Mikkelsen, co-CEO, Daraz, said:“ With this transaction, Daraz has found its natural home in the Alibaba family and we are proud to carry our part of the mission to‘ make it easy to do business anywhere’. With hard work and dedication, we have started the e-commerce journey in our markets, but we have still only scratched the surface of the potential.”
Jonathan Doerr, co-CEO, Daraz, added:“ Together with Alibaba, we are ready to empower entrepreneurs in the region and to fulfil our promise to offer our customers the best selection of products with a high level of convenience. All of this would be supported by a best-in-class technology platform, a strong logistics network, and a vibrant community of ecosystem participants.”
Expressing excitement at Daraz joining the Alibaba ecosystem, Daniel Zhang, CEO of Alibaba Group, added:“ Together with Daraz, we can now empower entrepreneurs to better serve consumers in the region through our technology and expertise. In Daraz, we found a great team that espouses our values and believes that a technology-enabled commerce ecosystem will play a critical role in driving the long-term economic development in South Asia.”
Founded in Pakistan in 2012, Daraz will continue to operate under the same brand following the transaction. ra
After being fully acquired by Alibaba to become a member of Alibaba Group, Daraz will be able to leverage Alibaba’ s leadership and experience in technology, online commerce, mobile payment and logistics.
38 Retail Asia June / July 2018