Managing Tax Thresholds for Country Specific Obligations
Overview
Some destination countries—like Australia and New Zealand—require merchants to register, collect, and remit sales tax once they pass a specific sales tax thresholds within a 12-month period. If you are nearing or over a threshold FlavorCloud supports tracking these thresholds and download the data for your records or remit on your behalf in order for you need to stay compliant.
When you sell into countries with threshold-based tax obligations, FlavorCloud will:
- Continue to show accurate landed costs, including applicable taxes.
- Flag when you are approaching or have exceeded a country’s threshold.
- Allow you to download self-serve reports of impacted shipments for easy tax remittance.
- If approved by you, remit tax on your behalf
Thresholds By Country
| Country | Sales Threshold | Timeframe | Notes |
| Australia | AUD $75,000 | Rolling 12 months | Tax must be remitted by merchant when threshold is passed. |
| New Zealand | NZD $60,000 | Rolling 12 months | Tax remittance is merchant’s responsibility post-threshold. |
See full list in Independent Foreign Sales & Revenue Tax Registration for Merchants for other countries with thresholds.
When Does FlavorCloud Collect and Remit Tax?
| Scenario | Tax Collected by FlavorCloud | Landed Costs in checkout | Responsible for remittance |
| Shipment is under de minimis and under threshold | No tax collected, as none is needed | No | FlavorCloud |
| Shipment is over de minimis and under threshold
Shipment is under de minimis but over threshold |
FlavorCloud collects tax
No tax collected by FlavorCloud |
Yes, need to collect for over de minimis shipment Yes, merchant gets the tax amount directly so they can remit to country |
FlavorCloud
Merchant |
| Shipment is over de minimis and over threshold | FlavorCloud collects tax | Yes, need to collect for both de minimis and threshold | FlavorCloud for de minimis and Merchant for threshold tax
OR FlavorCloud for de minimis and threshold tax. |
Important: If Shopify is set to collect taxes, FlavorCloud will not collect or remit tax
How to have FlavorCloud remit tax on your companies behalf
Read out to your Customer Service Manager by scheduling a meeting or sending an email under the “Connect with FlavorCloud” in the FlavorCloud App. They will be able to toggle on remittance for Australia or New Zealand once the threshold has been crossed.
If you have a tax ID in that country, provide it to the FlavorCloud team. If you do not have a tax ID, FlavorCloud can remit under FlavorCloud’s tax ID.
How to Access Tax Threshold Reports
- Log into the FlavorCloud Admin
- Go to Analytics > Tax Analytics
- Select the relevant country (e.g., Australia, New Zealand)
- Click Download Export
- Use the exported data to organize your filings and remit tax as required
Best Practices for Setup
| Status | Recommended Setup |
| Under & Over tax thresholds | Turn off Shopify tax tracking and add your tax ID in FC |
| Over tax thresholds | Work with your tax advisor and use the FC report for remittance |
⚠️ Reminder: FlavorCloud cannot provide country-specific tax advice. Always consult with your accountant or tax attorney.