GST impost from 1st July

[porcelain_dolls_by_me]

My understanding is that from 1st July EBay will collect from buyers a 10% GST impost on purchases from overseas sellers.  Whether the buyer is registered for GST is immaterial, they will still pay the GST but claim it back as an input credit when they lodge their BAS.

My question is, how will EBay determine is it is an overseas seller and the goods will be imported into Australia as a result of the transaction?

They cannot use the "Item Location" for as we know the Chinese state some Australian location and hence the EBay process would probably exclude the transaction from the GST scoop.

Thoughts?

[lyndal1838]

It would have to based on where the seller is registered.....if it is an overseas registered account then the GST is charged.

[kopenhagen5]

I'm guessing all of a sudden there will be a lot of drop shipping accounts in Aus started, still with item location as here.

[porcelain_dolls_by_me]

So the Chinese seller opens an account with EBay Australia and lists the item location as Australia, with a (eg) 7 -14 handling/shipping time.  Australian seller and item location so no GST would charged.

They make a sale and send an email to their real Chinese office who then ship the goods.

The Chinese are going to find a way to circumvent the GST - I am just trying to work out what it will be (lol)

[enigmabear]

That was my first thought also

[imastawka]

I thought the Government was going to collect it at Customs?

Might have a bit of a google.........

[porcelain_dolls_by_me]

It is my understanding they canned the item of collecting the GST at Customs (as is the present situations) as the cost of doing same would have been prohibitive.

Instead they have flicked to responsibility onto the like of EBay, Amazon, etc. 

[imastawka]

Yeah, I found that as a recommendation, but I've found nothing on how they're going 

to enforce it.

Didn't ebay say they wouldn't be doing it?

[porcelain_dolls_by_me]

I seem to recall that even though they **bleep**ed and moaned about the added burden they were given no choice.

After all, in the USA for example, Amazon have programmed their systems to collect state taxes where required.  So it can be done,

[porcelain_dolls_by_me]

Are the moderators of this forum serious???????

You have "bleeped"  my word "**bleep**ed" which is a common usage word and listed in all dictionaries.  Do a Dr. Google search and stop being so precious and pedantic!