Retailers are asked at checkout to provide their ABN number, as well as to inform Faire if they are registered for Goods and Services Tax (GST).
GST registered businesses
We will generate an invoice for transactions that take place on the platform. To ensure that the correct GST treatment is applied to a transaction, Faire will need to know the GST registration of both brands (for sales taking place on the platform with Australian “ship to” addresses) and retailers (for import transactions).
ABN withholding
Where an Australian business makes a payment for goods or services that is greater than AUD $75 (excluding GST), that business is required to collect the Australian Business Number (ABN) of the person receiving the payment. Where the ABN is not collected, there is generally a requirement for the payer to withhold tax at the highest marginal tax rate (currently 47%) and pay that withholding tax over to the Australian Tax Office (ATO).
As a result, Faire collects ABNs for all retailers on the platform given our role in the supply-chain as a facilitator of payments between brands and retailers. Faire guarantees returns on certain transactions on the platform, and therefore may be processing payments in excess of AUD $75 to retailers. Where we have not received an ABN from a retailer, we will ask the supplier to complete a “Statement by a supplier” form. Where an ABN is not received, Faire must withhold at the appropriate tax rate or seek to have a retailer complete a Statement by supplier prior to processing refunds for returns.