As part of our sign-up process, brands are asked 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).
GST is automatically applied to transactions for GST-registered brands, and will be shown as a separate line item on your payout. For this reason, we ask that catalog prices are exclusive of GST.
GST-AUS Product Exemptions
At this time, we do not have the tooling available to mark products GST-exempt. We are aware of this limitation with the platform. As we are relatively new in Australia, we hope in the future to enable the option for brands to select applicable GST rates/reduced rates when confirming orders in their portals.
We also wanted to clarify the current way GST is working just to ensure that you know the full process. If an Australian retailer orders with you, we apply 10% GST to their invoice. Then, we remit the 10% to you in the order’s payout. Because of this, we ask all of our Australian brands on the platform to ensure that all of their products’ pricing is exclusive of GST.
Currently, our customer experience team is able to adjust the GST applied to a retailer’s invoice if they purchased GST-free products. If you have any retailers needing GST reimbursement, please direct them to reach our team via our Help Centre at this link.
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 brands on the platform given our role in the supply-chain as a facilitator of payments between brands and retailers. Where we have not received an ABN from a brand, we will ask the supplier to complete a “Statement by a supplier” form. Where Faire has not received an ABN or a completed Statement by a supplier, it must withhold tax at the appropriate rate or freeze payouts to a brand until such information is received.