Australia extends tax to foreign eCommerce

LinkedIn Twitter Facebook

 

Author: Richard Asquith, VP Global Indirect Tax, Avalara

Australia is set to draw non-resident eCommerce businesses into its 10% Goods & Services Tax (GST), starting 1 July 2017. The changes to the Australian GST regime will bring it into line many other tax authorities around the world who are seeking to ensure they gain their share of tax revenues from the burgeoning cross-border online shopping market.

GST on e-services

From July 2017 forward, sales of electronic services by foreign providers to Australian consumers will be liable to a 10% GST. These services include: streaming video, music and gaming; e-books; downloads or cloud-based software; subscriptions to membership or news websites; mobile phone apps; and online education.

 

The extension of GST to non-resident providers will require them to GST-register with the Australian Tax Office (ATO) once they exceed the registration threshold of AUS $75,000 per annum. Once registered, providers will be obliged to submit quarterly GST returns to the ATO, declaring all sales and applicable tax.

 

In the case of services and apps sold through an online distribution platform, such as Google Play and Apple iTunes, the platform is responsible for charging and reporting the GST.

 

The Australian e-services tax reforms bring it into line with similar changes over the past two years in the EU, South Africa, South Korea, Japan and New Zealand. Many other countries are expected for follow suit in the next 12 months.

Cross-Border eCommerce in Australia Tax Laws

Abolishing the GST-free threshold on foreign online sales

In addition to the changes on e-services, the ATO is making more foreign eCommerce goods transactions with consumers liable to GST. It is scraping the current GST-free threshold of AUS $1,000 per package, and making all arrivals of goods from foreign eCommerce providers potentially liable to 10% GST.

 

As with the new e-services rules, the AUS $75,000 GST registration threshold will apply. This will mean that possibly fewer than 100 offshore online retailers will be forced to GST-register and file quarterly returns. The vast majority of small eCommerce sellers will still be able to sell GST-free.

 

 

For more information, please consult our Australia cross-border eCommerce country guide.

LinkedIn Twitter Facebook

Connectivity and online behaviour in Canada

Connectivity and online behaviour in Canada

With typical online behaviour similar to other western counties, the Canadian eCommerce market can be seen as very appealing to cross-border retail. Exploring its sophisticated infrastructure, this article looks at the details of Canadian shoppers’ behaviour online, and examines some of the demographic nuances in internet access, online activity, and device preferences.
Online retail payment methods in Canada

Online retail payment methods in Canada

In different markets, shoppers can have varying preferences when it comes to making payments for orders on eCommerce sites. Canada is no exception but happily, there is more of an opportunity than a challenge when it comes to online retail payment in Canada. This article looks at the online retail payment methods within the Canadian eCommerce market.
Online shopping behaviour in Canada

Online shopping behaviour in Canada

When Canadian Shoppers buy online, how do they go about it, and what do they buy? With the use of mobile growing and the use of various devices for online shopping looking similar to trends in the UK, Canadian eCommerce has been a sleeping giant, but it’s waking up. And quickly. This article looks at the online shopping behaviour of the Canadian eCommerce market.
Online Retail Logistics in Canada

Online Retail Logistics in Canada

How should you go about planning your logistics strategy for servicing the Canadian eCommerce market and what are the options available? Canada is a spectacular 9,306 km from extreme east to extreme west so for any non-Canadian retailer looking for delivery partners to ship into the country, only large players with the scale to cover such a geography are particularly relevant. This article looks at the online retail logistics within Canada and how this impacts its eCommerce market.
5 tips for breaking into online retail in France

5 tips for breaking into online retail in France

France boasts being the 5th largest eCommerce market in the world and with an expectation to exceed €80 billion turnover in 2017, for those looking to enter this thriving online market here are five tips that could help you to break into the French online retail space.
Five things we learned at the eCommerce Worldwide Cross-Border Summit 2017

Five things we learned at the eCommerce Worldwide Cross-Border Summit 2017

On the 24th May 2017, we hosted our third annual Cross-Border Summit at the ExCeL London. Delegates from retailers and solution providers across the globe came to hear and share the latest insight on cross-border trading. But what were the key takeaways from the day?
2020 Vision: Spring provides route to ‘Destination Benelux’

2020 Vision: Spring provides route to ‘Destination Benelux’

With more than 28 million citizens between them, Belgium and the Netherlands are among the fastest-growing eCommerce markets when it comes to cross-border purchases meaning that they have rocketed up the rankings for attractiveness to retailers.
Entering the Emerging Markets of Latin America: Strategy Essentials

Entering the Emerging Markets of Latin America: Strategy Essentials

Latin America is a target market region for many business looking to expand globally. Brazil and Mexico are undeniable growth markets and the rest of Latin America (LATAM) is welcoming internet, social media, and eCommerce with open arms.
Interview with Melanie Smallwood, International Buying Director at Global Fashion Group

Interview with Melanie Smallwood, International Buying Director at Global Fashion Group

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Melanie Smallwood, International Buying Director at Global Fashion Group, to learn from her experience and knowledge in cross-border trading around the world.
Interview with Gregor McMillan, Business Development, China at The Hut Group

Interview with Gregor McMillan, Business Development, China at The Hut Group

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Gregor McMillan, Business Development, China at The Hut Group, to learn from his experience and knowledge in cross-border trading into China.

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2016© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More