GST when buying overseas - a few FACTS

[brerrabbit585]

The following link provides some very clear information on the new GST when buying from overseas.  It's fairly short and to the point.

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

It makes clear that a 're-deliverer' (such as Pitney Bowes) is responsible for collecting the GST, not the original seller or site it was bought on.  Re-delivers (forward services) don't have to register for the GST if they're under the $75K threshold, same as sellers and EDPs.

Using a re-deliverer

You are using a re-deliverer if you:

• purchase goods and have them sent to a mailbox in another country to be re-shipped to you in Australia.
• use the services of an overseas business that buys goods on your behalf and then helps you bring those goods to Australia.

The re-deliverer will charge GST on the goods and for their services in bringing the goods to you, if they are registered or required to be registered.

The business that makes the original sale should not charge GST, as they are not sending the goods to Australia. This means that you should not pay GST twice.

It also makes clear that GST is payable on the item cost plus the delivery fee (postage).

If you buy something as a gift you still pay GST, same as you would if you go to a physical store in Australia and buy a gift for someone.

It says that if a site thinks it's likely that GST will be payable, the website should display a GST-inclusive price.  If they're not sure if it'll apply or not, they have to say that extra tax may apply.  On this ebay page: https://www.ebay.com.au/help/buying/paying-items/paying-tax-ebay-purchases?id=4771   ebay states that they do display this on listings.  I checked and it's there - but it's hidden away down near the bottom on the payments tab where most people never look.  Technically they've fulfilled their legal obligations but it's a bit of a joke!

This information about the "GST may apply" isn't on GSP listings, obviously because ebay isn't responsible for collecting the GST on the sale.

I couldn't find anything about not being able to charge for collecting the GST but it looks like Pitney Bowes are charging a fee for doing it.  The forms they fill out for customs shouldn't be any different to before because I read on another page that nothing will have GST added to it when it comes through customs at the border, unless it's worth over $1K.  All PB are doing that they weren't before is collecting the GST and sending it to the Australian govt.

I read a bit of other interesting information on other pages (from following the links) but can't remember it all now.  I don't think it said anywhere that a seller (or re-deliverer) has to supply an itemised invoice.  It only said the invoice will usually be GST-inclusive.

[countessalmirena]

From eBay's Tax policy:

Items imported into Australia

GST applies to goods imported by consumers into Australia.

• Orders up to AU $1,000: From 1 July 2018, if an item is located outside Australia and the buyer selects a delivery address in Australia, eBay will add GST to the order total at checkout. You'll [the international seller] receive payment for the order value (item price + postage costs) as usual, and eBay remits the GST portion to the Australian Taxation Office (ATO).
  
  If GST was collected, you'll need to ensure that you include eBay's ABN number and the customs code on the package:
  
  eBay's ABN # 64 652 016 681
  Code: PAID
  
  Later this year, these details will be included with the buyer's delivery address.
  
  Please visit the ATO website for more information about the introduction of GST on low value imported goods.
   
• Orders over AU $1,000: We don't collect GST on orders over AU $1,000, as this is generally collected at the Australian border.

International sellers are thus instructed to include the customs code for eBay purchases (value < AUD 1000) being imported into Australia, and it's obvious that this is going to be automatically generated at some point this year. However, in terms of how eBay purchases will be handled by Customs, it really doesn't make any difference: low value items won't be inspected by Customs for GST purposes.

[padi*0409]

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@countessalmirena wrote:

If you are a buyer, you may see "GST may apply" when viewing items on eBay that are located overseas. You acknowledge and agree that if you buy a low value item on eBay from outside Australia, you will be charged 10% GST on top of the seller's item price (applied in your cart and at checkout). If there is any dispute as to the GST you have paid on an order, you should contact eBay. If you receive a full or partial refund for your purchase, you will also receive a refund for the proportionate amount of GST.

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Which should read "on top of the seller's item price + postage".

Unusual for eBay to get things wrong Countess..................

[countessalmirena]

Yes - it shocked me so much that I wept into my cat's new litter palace dome.

[retailtherapist_8]

The extra fees I am talking about for example is the $24 extra I paid on a $134 purchase (not including postage). GST @ 10% in my maths is $13.40

This is an example of a small inexpensive purchase at this rate the bigger ones will be totally price prohibitive.

Sorry Lyndal I completely disagree, 10% can be a big difference. Especailly when the GSP slugs you as much as $70aud postage for a medium size package under 1kg.

But you would know better I guess.

[lyndal1838]

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@retailtherapist_8 wrote:

@The extra fees I am talking about for example is the $24 extra I paid on a $134 purchase (not including postage). GST @ 10% in my maths is $13.40

This is an example of a small inexpensive purchase at this rate the bigger ones will be totally price prohibitive.

Sorry Lyndal I completely disagree, 10% can be a big difference. Especailly when the GSP slugs you as much as $70aud postage for a medium size package under 1kg.

But you would know better I guess.

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In your example you also pay GST on the postage component of your parcel so no, $13.40 is not the GST payable on that purchase unless it was post free.

I agree that the GST on GSP purchases is a rip off but that is hardly the fault of the GST system....$70 is a ridiculous amount to pay for shipping and on top of that there is a fee to collect the GST.

[letscleanupmycupboards]

Why is it a GSP item that's a total of roughly $100 including postage shows an estimated $15.40 extra import costs?

[padi*0409]

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@letscleanupmycupboards wrote:
Why is it a GSP item that's a total of roughly $100 including postage shows an estimated $15.40 extra import costs?

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Because Pitney Bowes put their own collection fee on top of the GST.

[letscleanupmycupboards]

Collection fee? For what? Charging the gst?

[davewil1964]

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@letscleanupmycupboards wrote:
Collection fee? For what? Charging the gst?

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Collecting and remitting it.

Yet another reason to avoid the GSP.

I might have mentioned this before, but nothing you import is a NEED.

[k1ooo-slr-sales]

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@retailtherapist_8 wrote:

@The extra fees I am talking about for example is the $24 extra I paid on a $134 purchase (not including postage). GST @ 10% in my maths is $13.40

This is an example of a small inexpensive purchase at this rate the bigger ones will be totally price prohibitive.

Sorry Lyndal I completely disagree, 10% can be a big difference. Especailly when the GSP slugs you as much as $70aud postage for a medium size package under 1kg.

But you would know better I guess.

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perhaps cases like this one you cite will make Australian sellers a little more price competitive, where no GST is added to the item price or postage (GST where required on Aussie items is price-inclusive).

Now, I know you posted that you are buying pre-loved items that are not available in Australia . . . . . and all I can say in response is that imports probably should have had GST applied many years ago and that members just have to adjust their spend limits as the GST on low-value imports is here to stay.

Buyers who are interested in items that are available with GSP now have added incentive to try harder to encourage sellers to opt-out of GSP on items of interest to them.  It is something you can tell GSP sellers i.e. “I am really wanting to buy this item at US$XX but it is not affordable to me with the GSP as they charge an import charge now that we have tax added to our international purchases. Is there any chance you could ship via USPS?”. It won’t stop the GST being added by eBay, but at least eBay don’t add an import charge (yet).

Other than what I have posted, all I can add is that you have options available to voice your opposition to this tax on imports via lobbying your local member, state senate members, federal treasurer and the Prime Minister.  Posting here will not change anything, and may look like venting, whinging or whining.  I mean, if you post in full knowledge that nobody here can do anything to make change happen, then it is just to put your opposition on the record in a place where those who could take your opinions on-board do not visit.  Remember, there is an election coming up, so your concerns may not totally fall on deaf ears, especially if you live in Queensland.

Spoiler

maybe HAA