FTA SUBMISSION - GOODS AND SERVICES TAX (REVIEW OF LOW VALUE IMPORTED GOODS)

Incorporating extensive member feedback from freight forwarders, customs brokers and the E-Commerce Reference Group (Alibaba, eBay and Amazon), Freight & Trade Alliance (FTA) last week completed a submission to the  Goods and Services Tax - Review of Low Value Imported Goods.

The submission highlighted the LVIG regime is being undermined by enabling businesses who sell to Australia via particular platforms to charge 10% less than via electronic distribution platforms (EDPs) or other domestic competitors. In effect, this encourages consumers to shop on less trusted websites which do not provide guarantees on purchases, reduces government tax revenue and most importantly reduces the competitiveness of Australian retail.
 
As a general tax compliance, integrity and transparency measure, FTA also recommended the ATO document and report on those EDPs required to collect and remit on an annual basis. As we are likely to see new entrants into the Australian market in the coming years, this would assist in demonstrating these entities are compliant with the rules.
 
Submission available HERE (FTA/APSA MEMBER LOGIN REQUIRED)