Online marketplaces decry 17pc tax on transactions
The Finance Bill proposed to place Online Marketplaces under the definition of Retailers’ and all transactions conducted via these platforms would be taxed at 17 percent
ISLAMABAD: The country’s online marketplaces (US) responded strongly to changes in the value-added tax Act in the early 1990s, the fear is that most companies stayed away from it, online shopping platforms, and should, lead up to the illegal sellers.
The draft law on finance, presented to Us under the definition of the term “sales reps, level 1”, and all transactions are carried out via any of these platforms will be charged at a rate of 17 percent.
However, the online sales platforms have begun to argue that the authorities should be to make a distinction between the online ticketing platforms and brick and mortar shops. There are over 17 platforms in the country, working as an “online marketplace”, is the provision of a wide range of products of second-hand goods, running errands, going to the other industrial and consumer products.
The “business model” has been adopted worldwide as an e-commerce business. This will help you to expand opportunities for small and medium-sized enterprises that can contribute to the digital transformation of the business and sustainable development of the digital ecosystem, ” said Muhammad Imran Salim, Vice-President of the Daraz Group.
In the model, which is the name of the product is to be used by the vendor to the online market place. Whereas, each seller has its own rating, so that all customers can see all of the performance and the reliability of the seller, a qualified buying decision.
Under the new proposed tax changes, the burden of the collection and payment of value-added tax (such as vat) is a member of the online marketplace industry.
US to begin to provide an explanation for their books and all of the taxable finished goods on their platforms. FOR cross-platform or receive the liability of the vendors, and they will claim that they are exempt, the tax-consolidated financial statements.
However, in the case of the illegal sellers TO the platforms, you will not be entitled to claim an entry in the invoice for the taxes, due to the public nature of the supplier.
“The eligibility requirements, and their mechanics are still unclear, because of the products that attract different rates of tax that the seller is the cost of the online market place,” Mr Salim said, adding that it is the net difference will represent the cost incurred by the online marketplace.
He said that the online market platform in a very early stage in Pakistan, and that the new restrictions will lead to a great increase in the number of online illegal vendors, which will lead to a marketing scam to the consumer. Consumers can have access to a huge number of products from different categories are available on the following platforms.
Published by Tech team Install into PC, June 22nd, 2021