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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 ad

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
  Well, since the government can't collect what they don't know about, they want Sven to do the effort, charge extra for Aussie customers and then forward them that money. Extremely ridiculous.
  - cyberferret 10y ago
    That's the crux of the problem. The GST is essentially every business person in Australia having to self assess and become a tax collector on behalf of the ATO. I am scrupulous when tracking GST for my local clients, but when I sell to someone overseas, I haven't a clue about their local regulations or tax requirements, and I don't have the resources to stay abreast of it. I used to be a consultant for various enterprise systems. In Australia, there are something like 8 total permutations for GST (GST Free, GST Exempt, Capital Acquisition etc. on purchases and sales) Quite straightforward. However, if you look at the USA, with their local, state, county and federal tax laws across the country, there are something like 60,000+ likely permutations.
- cyberferret 10y ago
  Yes. The government (customs) already has processes in place to stop and collect GST on any incoming goods worth over AUD$1000. Plus extra duties on certain items like musical instruments etc. The threshold is probably there so that cheaper items like Sven's moccasins don't use up valuable (people) resources. However, perhaps they are realising that the millions of small transactions slipping through are costing them massive tax revenue. Ok, they can fix the 'Goods' side of the GST, but how the heck are they going to police the 'Services' part of it?

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
Well, since the government can't collect what they don't know about, they want Sven to do the effort, charge extra for Aussie customers and then forward them that money. Extremely ridiculous.
- cyberferret 10y ago
  That's the crux of the problem. The GST is essentially every business person in Australia having to self assess and become a tax collector on behalf of the ATO. I am scrupulous when tracking GST for my local clients, but when I sell to someone overseas, I haven't a clue about their local regulations or tax requirements, and I don't have the resources to stay abreast of it. I used to be a consultant for various enterprise systems. In Australia, there are something like 8 total permutations for GST (GST Free, GST Exempt, Capital Acquisition etc. on purchases and sales) Quite straightforward. However, if you look at the USA, with their local, state, county and federal tax laws across the country, there are something like 60,000+ likely permutations.
cyberferret 10y ago
Yes. The government (customs) already has processes in place to stop and collect GST on any incoming goods worth over AUD$1000. Plus extra duties on certain items like musical instruments etc. The threshold is probably there so that cheaper items like Sven's moccasins don't use up valuable (people) resources. However, perhaps they are realising that the millions of small transactions slipping through are costing them massive tax revenue. Ok, they can fix the 'Goods' side of the GST, but how the heck are they going to police the 'Services' part of it?