Why does Global Shipping charge more than 10% GST

Why does Global Shipping charge a buyer more than 10% GST to Australia 

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Why does Global Shipping charge more than 10% GST

I think it is because Pitney Bowes charges for collecting GST and remitting it to the ATO.

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Why does Global Shipping charge more than 10% GST

As per eBay’s International purchases and postage for buyers Help page, when buying through the GSP the buyer pays ❝postage, taxes, and import charges (including processing charges and any applicable GST or other import charges)❞.

 

Bluntly, Pitney Bowes charges their own processing fee, and GST on the processing fee.

 

Total shipping fees for a GSP item will include:

 

• domestic postage charged by seller from them to PB warehouse

• PB’s overseas shipping charge

• PB’s processing charge including their fee for submitting GST to ATO

• any customs duty or other costs

• GST on the item, on the domestic shipping, on the overseas shipping charge, on PB’s processing charge and on any customs duty etc.

 

That’s why the GST component looks larger than 10%.

 

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