There are many factors that contribute to compliance of vendors and EDPs; vendors continually complain about costs, processes and do not want to do be responsible to collect tax collection capability to our platform only for Australia will cause major “adding disruption to our global business, not to mention the significant financial investment we would have to make to build such processes and systems” cost of each merchant is different based on location size and more mass number of vendors now and in the near future. interoperability of data with millions of vendors, hundreds of countries/states/provinces vendors will cost with not input any/all costs to consumer will be passed on. more to limits. no visibility. no way to know the rate of compliance. encryption no audit, – where should the marketplaces or vendors pay sales tax no enforcement on vendors this proposed process restricts other opportunities to use the platform down the other customers data, levies, more.) road. (e.g. reporting income, conflict of interest (vendors collecting tax is a material conflict of interest: counterfeit goods, laws, revenue conflict. vendors will not shut down their revenues vendors will not self-enforce us postal and terminal fees apply around the world subsidize of – delivery vendors have large lobbyist budgets to change in their best interest control of the economies money? do you really want to enable the revenues in their controls? delay of remittance vendors traditionally cashflow their business with governments remittance. multiple law suits currently between vendors and tax offices globally for many reasons. (google Italy and amazon) how will complying affect their competitiveness with other vendors in the market? − Compliance will be different per vendor as there is no enforcement. Vendors will continue to be incentivated not to remit tax. how effective will the ATO enforcement activities be? − The answer to this must follow the definition of e-commerce and how remittance is ATO’s measured. The need to know the transactions and the remittance level will determine the delta and the effectiveness. Netsweeper provides the data, the remittance and the enforcement to execute. will some vendors for example by ignoring standard exemptions to GST or − ‘over-comply’, purchases by registered businesses?
There are many factors that contribute to compliance of vendors and EDPs; vendors continually complain about costs, processes and do not want to do be responsible to collect “adding tax collection capability to our platform only for Australia will cause major disruption to our global business, not to mention the significant financial investment we would have to make to build such processes and systems” cost of each merchant is different based on location size and more mass number of vendors now and in the near future. interoperability of data with millions of vendors, hundreds of countries/states/provinces any/all costs to consumer will be passed on. vendors will cost more with not input to limits. encryption – no audit, no visibility. no way to know the rate of compliance. where should the marketplaces or vendors pay sales tax no enforcement on vendors this proposed process restricts other opportunities to use the platform down the road. (e.g. reporting income, other customers data, levies, more.) conflict of interest (vendors collecting tax is a material conflict of interest: counterfeit goods, laws, revenue conflict. vendors will not shut down their revenues vendors will not self-enforce us postal and terminal fees – apply around the world subsidize of delivery vendors have large lobbyist budgets to change in their best interest control of the economies money? do you really want to enable the revenues in their controls? delay of remittance vendors traditionally cashflow their business with governments remittance. multiple law suits currently between vendors and tax offices globally for many reasons. (google Italy and amazon) − how will complying affect their competitiveness with other vendors in the market? Compliance will be different per vendor as there is no enforcement. Vendors will continue to be incentivated not to remit tax. − how effective will the ATO enforcement activities be? The answer to this must follow the ATO’s definition of e-commerce and how remittance is measured. The need to know the transactions and the remittance level will determine the delta and the effectiveness. Netsweeper provides the data, the remittance and the enforcement to execute. − will some vendors ‘over-comply’, for example by ignoring standard exemptions to GST or purchases by registered businesses?
sub008-collection-models.docx