What is an EDP?
An electronic distribution platform (EDP):
- is a service that allows sellers to make supplies available to buyers
- is delivered via electronic communication (such as a website, internet portal, gateway, application or online store)
- does not include a carriage service
- allows sellers to make supplies available to buyers (for example, booking accommodation or a car ride, or renting out a handbag or lawnmower).
An EDP can be, but is not limited to:
- a website
- an internet portal
- a gateway
- an application
- an online store
- an online marketplace.
Platforms are not an EDP if they only provide:
- carriage services that transmit electronic communications
- access to payment systems or payment processing services
- advertising that makes buyers aware of products and links them to a seller's website.
If you operate an EDP you must report certain transactions involving supplies for consideration made through your platform.
Example: service that must report
Tulsi runs a business called De Luxe Locations.
De Luxe Locations is an online platform that enables customers to rent different houses and locations in Australia by the hour for photo shoots and filming.
De Luxe Locations facilitates the rental between the owner of the property and the customers, including taking payment.
De Luxe Locations would be required to report to SERR because it is an EDP (online service) that makes a supply (the venues) to customers (buyers). Tulsi would need to report the transactions that were paid for through the De Luxe Locations online platform.
End of example
Example: service not reported under the SERR
Michelle wants a plumber to fix her kitchen sink.
She uses a website called Fix It where she can request quotes for plumbing services.
Jim, a plumber, contacts Michelle and quotes a price, which Michelle accepts.
Fix It is not operating an EDP as its website only allows individuals to find a service provider. Transactions between the buyer and the seller are not accepted through the website and the details of the service being provided are agreed to outside the platform. The supply Jim makes to Michelle is not:
- made through an EDP
- reported under the SERR.
Instances of multiple EDPs
There may be instances where a supply is made through multiple EDPs.
Where a supply is made through multiple EDPs, the operator of an EDP (the first platform) isn't required to report details about the transaction if:
- the supply is also made through at least one other EDP
- the first platform doesn’t provide payment directly to the supplier
- another EDP operator provides all or part of the payment to the supplier and has a reporting obligation under the SERR for that transaction
- the operator of the first platform notifies us in writing on or before the due date for the reporting period in which the supply was reportable.
If you are unsure whether the operator of another EDP has a reporting obligation, you need to seek confirmation from them before you apply this exemption. If you can't get confirmation that another platform has a reporting obligation, you shouldn't rely on this exemption.
This principle places the obligation to report on the EDP that is closest to the seller/supplier. It reduces the likelihood that the same transaction will be reported to the Commissioner by more than one EDP operator, by placing the obligation to report the transaction on EDPs that provide all or part of the consideration they receive in relation to the supply directly to the supplier. If an EDP operator intends to apply this exemption in relation to supplies made through its EDP and another EDP, they must notify the Commissioner in writing that they will be relying on the exemption and not reporting those transactions.
Example: first platform operator in a multiple platform arrangement
Using the Short Stay Marketplace Co EDP, Ezra books a 3-night stay at a property owned by Nina in Melbourne for $450.
To book the accommodation, Short Stay Marketplace Co's EDP transacts and makes the booking through another EDP, Melbourne Vacations. Short Stay Marketplace Co pays Melbourne Vacations for the bookings, which then pays Nina.
In this case, Short Stay Marketplace Co is the first platform operator and doesn't pay the supplier directly. Short Stay Marketplace Co confirms with Melbourne Vacations that it has a reporting obligation in relation to the supply of accommodation by Nina and pays Nina.
Short Stay Marketplace Co may elect to rely on the exemption and not report the supply. If it does so, it must notify the Commissioner it is relying on this exemption before the due date for the reporting period in which the supply is reportable.
End of example