GST does not compute

[qazpolwertrip]

Hi,
I am looking at buying an item from the US, In AUD it cost $49.64.
postage is $30.94
GST is $14

I thought GST was supposed to be 10 percent of the items value.
Also GST was supposed to be excepmt for second hand goods.

I have learned of the rort about GST being the total invoice at sale
which conveintly includes the postage charges.

$14aud is still way more than the 10% of the total in this example
what is going on?

Thanks

[lyndal1838]

There is no need to be rude to other posters even if you think they have been rude to you.

This subject has been done to death and your question is just another one in a long line.

Firstly, the GST is applicable to all goods whether new or second hand.

The GST is a Goods and Services Tax......postage is a Service so attracts the GST....it is not a rort.

I assume your item is being shipped through the GSP......Pitney Bowes charges a fee for their service and this fee also attracts the GST as they are providing a service.

So although your amount is nominally the 10% GST on low value imports it also covers the extra fees and charges for the use of the GSP.

[qazpolwertrip]

Thanks foir your reply. Thats all someone had to do.

I'm sorry if this question been asked to death, can that be helped after going square eyed reading
various pages and sites on GST over the last several months while losing my job because of this Low value tax.....?

I am not bothered about my reply being rude, that person was being deliberatly antagonizing and didn't
need to reply even if it did bore them to death Seeing "another GST question". He/sh/it could've scrolled passed
and ignored it. Just like I could've ignored them and not replied. If there going to go out of there way to be 
like that, they can at least expect that back in return.

[countessalmirena]

@*photofix,

There have been so many threads and posts concerning these issues that one of the members here created a dedicated thread containing as much relevant information as possible.

Within the thread, this post clarifies the position re second-hand goods and GST.

Within the same thread, this post clarifies the position re shipping / postage costs and GST.

Within the same thread, this post clarifies the position re fees and GST when purchasing through the GSP (Global Shipping Program), as well as every other scenario for purchasing low-value imported goods. (Different fees involved.)

The thread itself has as its subject ❝GST when buying overseas - a few FACTS❞, and was started by brerrabbit585. It is well worth bookmarking so that you can refer to it at any time when you have question marks dancing around in front of your eyes about what you'll actually be paying when buying from overseas sellers.

To bear in mind...

Because these questions have been asked so many times, with most eBayers apparently not searching for threads which explain this, active members on these boards do tend to feel frustrated as they wonder what they can do to encourage relatively new community members (eBay members posting on the boards) to search through information already provided. I think you can see why "Here we go again" is not an unusual first response; it doesn't mean that the appropriate information (and oftentimes links to the detailed information already posted) won't be along shortly. (And it also doesn't mean that masked profanity is a fair or appropriate reply; if you get to know tippy*toes on these boards you will find that she has a wealth of knowledge and has given many eBay board members a lot of helpful information as well as moments of quirkiness and encouragement in addition to blunt and outspoken moments.)

[kopenhagen5]

As stated, GST is on total invoice and any seller using the GSP, Pitney Bowes charge an additional fee to collect the GST for the ATO.

You can ask a seller in the USA or UK if they are prepared to send via USPS or Royal Mail which will probably make the overall shipping cheaper but don't be offended if the seller refuses. It's their chioce.

[*tippy*toes*]

---

@qazpolwertrip wrote:

Hi,
I am looking at buying an item from the US, In AUD it cost $49.64.
postage is $30.94
GST is $14

I thought GST was supposed to be 10 percent of the items value.
Also GST was supposed to be excepmt for second hand goods.

I have learned of the rort about GST being the total invoice at sale
which conveintly includes the postage charges.

$14aud is still way more than the 10% of the total in this example
what is going on?

Thanks

---

Please provide any links that state this. It has never been, and never will be, the case. If it were, then everyone on both eBay, and B&M stores would sell everything as being second hand to avoid paying taxes.

Why shouldn't GST be payable on postage? What do you think the S stands for? If it was purely for goods, then it would be GT, not GST.

Definitely worth reading the links provided above by the Countess. Everything is there, including relevant links to the ATO.

Also, as someone else suggested, if the item is being sent via Global Shipping, send a polite message to the seller asking if they would be prepared to send the item via USPS or Royal Mail (depending on if it's in the US or UK) BEFORE buying (it can't be changed after buying). A lot of sellers in both the US and UK don't know the high costs involved with sending items via GSP, nor that you would be paying extra charges on top of the already high postage costs. 

At the end of the day, look at the overall price of the item, including any added fees and charges. Sometimes, even with the extra charges, it still works out to be a bargain. $1 with $49 postage is the same as $50 with free postage. The first one looks like a complete rip off. I have snapped up some screaming bargains because sellers have listed items that way. I did get my auction item for $1 with $49 postage, yet their $50 free postage item went for over $100.

As for the masked profanities, I will ignore them this time, even though I used no profanities towards you. The moderators may not though.