The issue with the Governments proposal is that they want to โhitโ the marketplace, not the individual sellers.
If Iโm buying a vintage coat from a grandma in the US who is cleaning out her closest, she doesnโt met the definition of a business seller (over $75,000 per annum) so she is exempt and accordingly my one off purchase is exempt. Under the rules.
However the govt wants to make eBay, the marketplace, responsible for collecting the 10%. EBay cannot and will not be examining their records to see if x seller has transacted more than $75,000 this year to work out if GST is payable or not. They will just have to levy the 10% on all and every transaction. However, eBay is no charity, so someone ie the buyer is going to have to bear the costs to implement these changes to their systems to facilitate the collection and remittance of GST money.
So even that 99 cent purchase has a 10 cent GST amount to be collected and remitted.
And how will returns, refunds or item not received work? The GST is already collected, itโs collected when you pay for your item, not when you receive it. So how the @@@ does eBay get the already paid GST back for the buyer? More expense to the buyer.
Despite the Governments beliefs, most items bought on eBay from overseas are done so because they arenโt available here to buy, or they are preloved. No Aussie enjoys the eyewatering shipping costs to bring whatever to Australia.
And if you read the Govt report, you read that they would also like PayPal to be responsible for collecting GST on any money paid for goods overseas. They realize that other websites or marketplaces might be under the radar but seeing as we have to pay, they can skim the cream that way.
So then a whole raft of other issues might result, people will start paying in less secure ways or buying through less secure markets to either avoid the GST or because the seller refuses to sell or accept payment any other way.
Sadly itโs a short slippery slope to chaos in my opinion.
