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

Understanding the Current Global eCommerce Localisation Trends

Understanding the Current Global eCommerce Localisation Trends

Localisation has become key to success online and savvy brands and online retailers have adopted innovative approaches to localisation in order to provide the best experience for their target customers while retaining their brand identity and tone of voice in all of the markets that they operate. So how are retailers applying localisation strategies across the world and how are demands shifting?
How to ship with Fulfilled by Amazon

How to ship with Fulfilled by Amazon

If you shop on Amazon, you may often see the term ‘Fulfilled by Amazon’ meaning that you’re buying a good not from Amazon, but from a third party seller. Fulfilled by Amazon, or FBA, selling is where a third party stores their goods in Amazon warehouses, and Amazon then uses them to fulfil listings. But what does it take to sell your goods as Fulfilled by Amazon?
The legal landscape for online retail in Canada

The legal landscape for online retail in Canada

The legal situation around online retail in Canada is complicated by its general devolution from federal to province / territory level. In theory this means 13 different sets of terms and conditions needed. In practice, there is a very high degree of uniformity. This article looks into Canadas legal system from an online retailers position.
Online retail competition in Canada

Online retail competition in Canada

Canadians are amongst the most prolific cross-border eCommerce purchasers in the world - however, something to think about is that more and more local retailers, who previously were poor at eCommerce, are increasingly now getting better at it. This article looks at some of the top retailers in the Canadian eCommerce market to help you understand the competitive landscape there.
The Size of the Canada Retail Market

The Size of the Canada Retail Market

With the presence of US retailers in Canada unsurprising, some may find it hard to believe that not all northward ventures have ended in success. Therefore, you shouldn’t assume that the presence of a US giant means that other cross-border retail efforts would be hopeless. This article looks at the value of the total retail market in Canada and outlines the current competitive landscape there.
Online retail marketing in Canada

Online retail marketing in Canada

With internet and device penetration significant and online browsing behaviour fairly typical of a developed market, the landscape of online marketing looks very familiar to highly connected countries. However, retailers should be aware of the subtle but significant differences between the Canadian and the UK markets. This article looks at use of marketing methods for online retailers in Canada.
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.

Contact Us

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

Tel: 0203 696 0980
2017© 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