GST on overseas items from sellers who sell less than $75K in Australia?

[professionaldeals]

Hi, the ATO is quite clear about this. If an overseas vendor sells more than AUD$75K in Australia, then they will need to be registered to collect GST. However, numerous overseas vendors on Ebay are small timers who wish to sell a few items. They have no obligation to register for GST, nor collect GST. Therefore why does Ebay collect GST on EVERY sale, irrespective of the status of the overseas vendor selling in Australia.

https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Makin...

[padi*0409]

There have been a number of threads about this on the boards, but to summarise the ATO classes eBay (and Amazon etc) as the sellers of the imported goods for GST purposes.

https://community.ebay.com.au/t5/Buying/GST-when-buying-overseas-a-few-FACTS/td-p/2171248

[kopenhagen5]

It came in on 1st July 2018 that all items imported under $1000 is subject to 10% tax.

Previously it has been in place for items plus shipping exceeding $1000 for a very long time.

[professionaldeals]

Perhaps you should have read the ATO link. The requirement to collect GST for items under $1000 only exists if the seller sells more than $75K of goods in Australia. That is what came in as law and what eBay is doing represents a departure from it.

[davewil1964]

Perhaps you should read some of the myriad threads about this, especially the one padi linked to.

For the purposes of the ATO, eBay (and Amazon and a few others) are deemed to be the seller. This means that EVERY transaction that involves overseas purchases by Australians requires eBay to collect GST and remit it to the ATO.

This is the law, and I'm fairly sure the ATO mentions it on their site.

[k1ooo-slr-sales]

---

@professionaldeals wrote:
Perhaps you should have read the ATO link. The requirement to collect GST for items under $1000 only exists if the seller sells more than $75K of goods in Australia. That is what came in as law and what eBay is doing represents a departure from it.

---

what eBay is doing is following the law.

Under the laws that came into effect in July 2018 eBay as the electronic distribution platform (EDP) is deemed to be the supplier of goods.  eBay Australia is clearly going to be involved in more than A$75,000 of sales into Australia each year . . . so GST is payable on low- aluenitems bought through eBay and imported into Australia.

This is from an ATO page: (https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Infor...)

When you use an electronic distribution platform (EDP)

An EDP is a service (such as online marketplace) through which you can buy goods from various merchants.

GST on low value imported goods sold through an online marketplace is generally charged by the EDP operator, as they are deemed to be the supplier.

GST will be payable on the sale where the online marketplace is required to be registered (that is, they meet or exceed the A$75,000 GST registration threshold). This is the case even where the individual merchant may not meet or exceed the GST-registration threshold (that is, they are an individual not operating a business).

The important part, in response to the assertions you make in your Opening Post is the last sentence.

i.e. This is the case even where the individual merchant may not meet or exceed the GST-registration threshold (that is, they are an individual not operating a business).

I guess that when someone looks at ATO pages aimed at businesses they miss the ATO pages aimed at consumers.

[gutterpunkz05]

---

@professionaldeals wrote:
Perhaps you should have read the ATO link. The requirement to collect GST for items under $1000 only exists if the seller sells more than $75K of goods in Australia. That is what came in as law and what eBay is doing represents a departure from it.

---

Wrong.