Tips for Growing Your eCommerce and Online Business: Traditional vs. New E-Commerce Model

0

An e-commerce operator is somebody who owns, performs or handles digital or electric facility or system for online business. Certain requirements from an e-commerce operator.

Had fun meeting some great ecommerce business peeps yesterday! 😁 @ecommerceexpo @tfm_event

A post shared by ♚ Ruth Noel ♚ (@taxtwerk) on

Sales of Goods – Online Traditional Model

The original model known as stock-and-sell style of online deal of goods included a listing of goods / services that was displayed to the client, where the client can purchase desired goods/services in his online cart and make the online payment. The purchased goods/service is then sent to the client by various services like courier, delivery, or available stores of the company.

Sales of Goods – New eCommerce

In such a model, the web platform is owned by one individual. However behind the scenes the goods can be purchased on such a system run by other retailers. The individual owning the website or platform shows the merchandise of other businesses. It can be white labelled or branded. The customer’s payment is created and paid to the website owner.  The delivery of goods is immediately provided by the merchandise owner to the customer. The website owner makes the repayment of the products to the merchandise owner after deducting his margin or percentage.

eCommerce & the Income tax Return Online

Today’s indirect income tax return online composition in the United Kingdom is complicated & possesses many fees levied for eCommerce businesses that operate internationally. eCommerce has been fragmented due to variations in VAT laws and regulations. For example one of the areas affected recently was digital products commerce. In the UK and Europe the Flat Rate Scheme affects digital business.

Both eCommerce and the income tax return online is at an evolving level even under the existing regime. The number one factor is the change in technology. The position of present levies has been summarized in simple as under:

Excise:
Generally it is realized that there is no levy of excise in the field of electric commerce as no person can take part in virtual creation of goods. Including the actions of packaging and re-packing carried out by the digital commerce platforms. However, in the future further repacking, relabeling to permit to make it for retail sales could be affected in regards to certain products like health care and consumer goods.

Sales income tax return online:
Sales made by online business websites is chargeable to the income tax return online. In conclusion, both the traditional and new eCommerce business models are required to register and file taxes online each year. Ensure that you have your ducks in a row.

Let’s Talk Tax

Questions? Need tax services and personal advice?

We’re an international income tax return service that feels super fast, personal and fun to give you more time freedom. We know your life isn’t only between 9-5 and neither are we. Book a free call back within 28 seconds, day or night. visit TaxTwerk.com today.

 

Leave A Reply

Your email address will not be published.