6 ms·

If Sven manages to sell $75,000 AUD worth of moccasins to Australians, he might reasonably have the resources to collect the taxes as well. That's not to say

by hirsin 10y ago

If Sven manages to sell $75,000 AUD worth of moccasins to Australians, he might reasonably have the resources to collect the taxes as well. That's not to say he will, but I feel that selecting 75k as a threshold falls on the side of "it's cheaper to comply", which is the right move.

bpodgursky 10y ago
$75,000 gross retail, at a usually far smaller profit margin -- call it $7500. Do you seriously expect someone to hire a tax attorney for Australia over that much income? That's the price of walking into the door.
- wbl 10y ago
  If they are smart they will make the tax so simple you don't need an attorney: just slap a decimal point in the right place and send a check to an easy to find address.
  - ptaipale 10y ago
    That's an if.
  - imron 10y ago
    Let me put it like this. The ATO's website for submitting quarterly tax statements requires a Java Applet to perform verification with a private key stored on your machine. Despite Java's "Write Once, Run Everywhere" promise, every single update of my OS (mac) and/or browser would cause issues because the OS and browsers are actively trying to prevent you from running Java Applets for security reasons. Which I understand, and also support, but it means that I'd be locked out of the site and had to spend a couple of hours hunting around forums posts trying to find a solution - and sometimes one wouldn't even exist. My current solution to this problem is to have a locked down, non-updating Windows VM that I use exclusively for filing my business activity statements. It's a pain for me to do it. I don't think it's going to be any easier for Sven.
- DrDolittle 10y ago
  If Sven is making $7500 from sales to Australia, he's probably making at least $100K from sales to Europe, USA, etc. He can afford an eCommerce package that adds a GST line item when the destination country is Australia, or VAT when the destination is the UK. Nobody needs a one-on-one with a tax attorney over this.
  - briandear 10y ago
    But why does he owe Australia anyway? He isn't there. Not his problem. The shipping company owes something, but not Sven. What if an Australian citizen visits Sven's shop in person? Should he have to pay the tax then? The origin of the seller makes no difference. The shipping makes no difference. The shipping company should pay tax on the shipping cost as they are benefiting from Australian roads, police, etc. But old Sven? Why does he owe Australia anything? Should there be passport based taxation in retail stores? Because that's what this means. The method of transporting an overseas sale: personal suitcase or FedEx -- is irrelevant. The sale actually occurred outside Australia. I know leftists love their worldwide taxation, but this is getting ridiculous. What's the sales tax rate for jeans in South Korea? What are the exemption rules for Bangladesh? Enough with the taxes. If Australia wants to compete, they ought to compete. Apparently Australia is too expensive and doesn't make stuff for which there is demand. How is that Sven's fault? Also this benefits the consumer, they spend less with Sven and they can spend more on housing, services or other products, thus stimulating the economy and ultimately creating growth.
    - cyxxon 10y ago
      > The sale actually occurred outside Australia. I think this is where the problem lies - did it? I think it did, just like you. But as a German who e.g. always had trouble buying regular game version s on Steam and always getting "low violence" editions I got the impression that at least some governmnents think the sale happens where the consumer is when online shopping. Probably only when it benefits that government, but well, we all know how it is. Or maybe it is different for digital goods, since nothing really was physically shipped?
    - animal531 10y ago
Alupis 10y ago
> I feel that selecting 75k as a threshold falls on the side of "it's cheaper to comply" I doubt the Australian government will have much luck penalizing Sven, in Norway, for non-compliance of an Australian tax/law.
- hirsin 10y ago
  No need - they just block the site, and Sven loses his $75k in revenue. That's the penalty.
  - Mao_Zedang 10y ago
    No way that will work the vast majority of consumers in Australia are tech savy enough to sign up for VPN and shop that way /s
  - Alupis 10y ago
    I seriously doubt the AU government is going to go around blocking thousands (millions?) or websites that sell products into AU but don't pay AU taxes (my company included).
- bootload 10y ago
  "I doubt the Australian government will have much luck penalizing Sven, in Norway," Back-packer tax for EU citizens? ~ http://www.abc.net.au/news/2016-09-01/backpacker-tax-set-to-scare-off-holiday-workers/7804908 http://www.abc.net.au/news/2016-09-01/backpacker-tax-set-to-...
  - sjwright 10y ago
    That is Australia collecting tax in Australia. Entirely different.

by hirsin 10y ago

bpodgursky 10y ago

$75,000 gross retail, at a usually far smaller profit margin -- call it $7500. Do you seriously expect someone to hire a tax attorney for Australia over that much income? That's the price of walking into the door.

wbl 10y ago
If they are smart they will make the tax so simple you don't need an attorney: just slap a decimal point in the right place and send a check to an easy to find address.
- ptaipale 10y ago
  That's an if.
- imron 10y ago
  Let me put it like this. The ATO's website for submitting quarterly tax statements requires a Java Applet to perform verification with a private key stored on your machine. Despite Java's "Write Once, Run Everywhere" promise, every single update of my OS (mac) and/or browser would cause issues because the OS and browsers are actively trying to prevent you from running Java Applets for security reasons. Which I understand, and also support, but it means that I'd be locked out of the site and had to spend a couple of hours hunting around forums posts trying to find a solution - and sometimes one wouldn't even exist. My current solution to this problem is to have a locked down, non-updating Windows VM that I use exclusively for filing my business activity statements. It's a pain for me to do it. I don't think it's going to be any easier for Sven.
DrDolittle 10y ago
If Sven is making $7500 from sales to Australia, he's probably making at least $100K from sales to Europe, USA, etc. He can afford an eCommerce package that adds a GST line item when the destination country is Australia, or VAT when the destination is the UK. Nobody needs a one-on-one with a tax attorney over this.
- briandear 10y ago
  But why does he owe Australia anyway? He isn't there. Not his problem. The shipping company owes something, but not Sven. What if an Australian citizen visits Sven's shop in person? Should he have to pay the tax then? The origin of the seller makes no difference. The shipping makes no difference. The shipping company should pay tax on the shipping cost as they are benefiting from Australian roads, police, etc. But old Sven? Why does he owe Australia anything? Should there be passport based taxation in retail stores? Because that's what this means. The method of transporting an overseas sale: personal suitcase or FedEx -- is irrelevant. The sale actually occurred outside Australia. I know leftists love their worldwide taxation, but this is getting ridiculous. What's the sales tax rate for jeans in South Korea? What are the exemption rules for Bangladesh? Enough with the taxes. If Australia wants to compete, they ought to compete. Apparently Australia is too expensive and doesn't make stuff for which there is demand. How is that Sven's fault? Also this benefits the consumer, they spend less with Sven and they can spend more on housing, services or other products, thus stimulating the economy and ultimately creating growth.
  - cyxxon 10y ago
    > The sale actually occurred outside Australia. I think this is where the problem lies - did it? I think it did, just like you. But as a German who e.g. always had trouble buying regular game version s on Steam and always getting "low violence" editions I got the impression that at least some governmnents think the sale happens where the consumer is when online shopping. Probably only when it benefits that government, but well, we all know how it is. Or maybe it is different for digital goods, since nothing really was physically shipped?
  - animal531 10y ago

Alupis 10y ago

> I feel that selecting 75k as a threshold falls on the side of "it's cheaper to comply" I doubt the Australian government will have much luck penalizing Sven, in Norway, for non-compliance of an Australian tax/law.

hirsin 10y ago
No need - they just block the site, and Sven loses his $75k in revenue. That's the penalty.
- Mao_Zedang 10y ago
  No way that will work the vast majority of consumers in Australia are tech savy enough to sign up for VPN and shop that way /s
- Alupis 10y ago
  I seriously doubt the AU government is going to go around blocking thousands (millions?) or websites that sell products into AU but don't pay AU taxes (my company included).
bootload 10y ago
"I doubt the Australian government will have much luck penalizing Sven, in Norway," Back-packer tax for EU citizens? ~ http://www.abc.net.au/news/2016-09-01/backpacker-tax-set-to-scare-off-holiday-workers/7804908 http://www.abc.net.au/news/2016-09-01/backpacker-tax-set-to-...
- sjwright 10y ago
  That is Australia collecting tax in Australia. Entirely different.