The global shift to indirect tax and what it means for Australian mid-size business.
While many business leaders agree that tax reform in this country is a critical issue, the GST debate – to broaden the tax base or increase the rate – appears to be off the table for the foreseeable future. So why more information on indirect taxes (of which the GST is a subset)?
Recent years have seen the widespread global adoption of indirect tax regimes (both GST and VAT), as countries seek more investment-friendly revenue streams. This trend, which the following article outlines, points to growing import/export trade opportunities, evident in the increasing volume of Australian/Asia Pacific trade.
This is good news for the mid-size business sector. Lower import and export tariffs and more streamlined regulatory regimes makes regional and global trade more attractive than ever before for businesses ready and able to expand.
The recent spate of free trade agreements (with China, Japan, Korea and the Trans-Pacific Partnership countries) signal the region’s increasing significance, while a burgeoning Asian middle class, more affluent and confident than ever before, is fuelling exponential growth for businesses canny enough to exploit the opportunities on offer (witness Bellamy’s rocketing share price off the back of Chinese demand for untainted baby formula).
Exporting and importing inevitably introduce new challenges to companies preparing to trade offshore. To fully exploit the opportunities and friendly business climate offered by the recent agreements, business needs to ensure it’s fully across the detail.
In this article and ones to follow, Grant Thornton’s Indirect Tax specialists in Asia, Australia, the UAE, the UK and Puerto Rico, outline the key issues to consider.
What are the primary reasons behind the global shift to indirect tax?
Talk to your usual Grant Thornton adviser about how your organisation can prepare for the shift to indirect taxation.