Why is Aus GST applied by eBay on items sold in USA and delivered in USA?

[babycino356]

Why is eBay applying Aus GST on low value items (e.g. USD 100) bought from a USA seller (in Texas) and delivered to a person in USA (Florida)?

Doesn't Aus GST only apply to items bought overseas and imported into Aus?

[sugar249]

Where is the buyers account registered?

[babycino356]

Buyer account registered in Australia. Buying an item from a US-registered seller and sending it to a US family member as a gift. Family member lives in the US. 

[sugar249]

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@babycino356 wrote:

Buyer account registered in Australia. Buying an item from a US-registered seller and sending it to a US family member as a gift. Family member lives in the US. 

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Maybe you have confused the system,  because of where the purchasers address is.   Only a guess.

[countessalmirena]

Was the delivery address set in the buyer’s account to the US address before buying?

If not, the Australian address will by default trigger the GST and the shipping cost to Australia. This can’t be changed after the fact by requesting delivery to a US address.

[davewil1964]

My understanding is that eBay is required to charge GST on ALL low value purchases from overseas. I don't think the destination address comes into it.

I could be wrong. Check with the ATO, they are the ones who administer tax law.

[countessalmirena]

It’s only if the goods are imported into Australia that GST applies.

❝For a good to be taxed as a low value imported good it does not have to be delivered to the purchaser, but it does have to be imported into Australia with the assistance of the supplier.❞

(For supplier, we’d also read redeliverer or EDP.)

If an Australian resident buys from a U.S. merchant with the item to be sent domestically as a gift to someone in the U.S., there’s no Australian GST payable.

[davewil1964]

However eBay's algorithm is unlikely to discriminate, It will be something along the lines of "Australian purchaser, foreign buyer = GST"

[countessalmirena]

They’re not supposed to… but I suppose anything is possible! I did order something from a U.S. seller and have it delivered to my U.S. parcel forwarding address. No GST charged by eBay, but of course the parcel forwarder charged the appropriate GST etc for my consolidated parcels.

[cam-2793]

Would have been annoying if it had been charged by both eBay and parcel forwarder! Does forwarding company know whether it has been charged or not or do they just assume not?