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