Chinese e-commerce company Alibaba retained the top position with $1.14tn of gross merchandise value in 2020, followed by Amazon at $575bn, according to an Unctad report. Bloomberg
Chinese e-commerce company Alibaba retained the top position with $1.14tn of gross merchandise value in 2020, followed by Amazon at $575bn, according to an Unctad report. Bloomberg
Chinese e-commerce company Alibaba retained the top position with $1.14tn of gross merchandise value in 2020, followed by Amazon at $575bn, according to an Unctad report. Bloomberg
Online transactions accounted for 19 per cent of total retail sales in 2020, up from 16 per cent in 2019, as Covid-19 movement restrictions fuelled e-commerce growth, the UN Conference on Trade and Development said.
Several countries reported a growth in online sales, with South Korea topping the list at 25.9 per cent of total retail sales, up from 20.8 per cent in the previous year, Unctad said in a report.
The value of South Korea's online sales rose from $84.3 billion in 2019 to $104.4bn last year. The country's total retail sales stood at $403bn last year.
Other countries also reported higher online sales amid the pandemic.
China's online transactions accounted for 24.9 per cent of total sales last year, up from 20.7 per cent in 2019, while UK online transactions as a share of total sales rose from 15.8 per cent in 2019 to 23.3 per cent last year.
In the US, online portion of total sales grew from 11 per cent in 2019 to 14 per cent last year.
In terms of value, China's online sales stood at $1.4 trillion last year, up from $1.23tn in 2019. The US had $791bn in online sales while the UK had $130bn.
Global e-commerce sales jumped to $26.7tn globally in 2019, up 4 per cent from 2018, according to the Unctad report.
“These statistics show the growing importance of online activities,” said Shamika Sirimanne, Unctad’s director of technology and logistics.
“They also point to the need for countries, especially developing ones, to have such information as they rebuild their economies in the wake of the Covid-19 pandemic.”
The pandemic resulted in mixed fortunes for leading business-to-consumer e-commerce companies, according to the report.
Data for the top 13 e-commerce businesses, 10 of which are from China and the US, show a notable reversal of fortunes for companies offering services such as ride hailing and travel. All of them experienced sharp declines in gross merchandise volume and booking values.
Travel company Expedia was ranked 11th on the rankings after falling from fifth place in 2019 while Booking.com's parent Booking Holdings dropped from sixth place to 12th. Airbnb fell from 11th to 13th, according to Unctad.
Despite the reduction in the gross merchandise volume of services companies, the figure for the top 13 e-commerce companies rose by 20.5 per cent last year, compared with a 17.9 per cent increase in 2019.
There were particularly large gains for Canada’s Shopify and US retail company Walmart, according to the data.
Chinese e-commerce company Alibaba retained the top position with a gross merchandise value of $1.14tn last year, followed by Amazon at $575bn and Chinese site JD.com at $379bn. China’s Pinduoduo, Shopify, e-Bay and Walmart were in the top 10.
Overall, business-to-customer gross merchandise value for the top 13 companies stood at $2.9tn last year, according to the report.
Unctad also estimated the value of global business-to-business e-commerce transactions at $21.8tn in 2019, about 82 per cent of all e-commerce sales, including sales made through online market platforms and electronic data interchange transactions.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
In numbers
Number of Chinese tourists coming to UAE in 2017 was... 1.3m
Alibaba’s new ‘Tech Town’ in Dubai is worth... $600m
China’s investment in the MIddle East in 2016 was... $29.5bn
The world’s most valuable start-up in 2018, TikTok, is valued at... $75bn
Boost to the UAE economy of 5G connectivity will be... $269bn
Frankenstein in Baghdad
Ahmed Saadawi
Penguin Press
The biog
Favourite book: Homegoing by Yaa Gyasi
Favourite holiday destination: Spain
Favourite film: Bohemian Rhapsody
Favourite place to visit in the UAE: The beach or Satwa
Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19
Liverpool 4 Southampton 0 Jota (2', 32') Thiago (37') Van Dijk (52')
Man of the match: Diogo Jota (Liverpool)
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
