Why is Ebay charging GST on used items?

[netscrounger]

The Australian government imposed GST charges on online sales to protect "Brick and mortar" businesses, I get that, but why an I expected to pay an extra $30 on a set of obsolete used motorcycle carbs that I'm buying from a private seller in the US? What a scam! Cancel my bid thanks!

[peterkm123]

Through good management most of what I wanted was bought when the dollar was at parity. However, the dollar was at around 80 cents for a good while before it reached parity. Buying imports under $1,000 then was not so bad and I bought quite a few. Less than 80 cents, I was reluctant to buy but not as reluctant as I am now. "Our Economy is Strong" - successive Prime Ministers - but a current 72 cents doesn't really say it is

Besides, eBay has their own exchange rate: currently AU68 cents to the US dollar

[lyndal1838]

If you are going by the rates used in paypal you have to take into account that paypal build the conversion fees into the exchange rate whereas most banks charge a separate fee.  By the time you add the fees to the transaction cost paypal usually looks pretty good.

[peterkm123]

The thing is, the Australian Tax Office has extended Australian tax laws beyond our borders to include goods from foreign nations

So Australian tax laws are no longer just "Australian" but now are also "Global Australian" tax laws

It must have been agreed upon in a back room at one of those G20 summit meetings

And yet they always talked about eliminating tariffs (read the Lima Agreement - "The Lima Declaration calls upon the developed countries to eliminate barriers to trade"), Australia is a signatory to it

http://www.gwb.com.au/gwb/news/lima/

Eliminating tariffs was for whom ? Not for the man in the street obviously

[digital*ghost]

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@peterkm123 wrote:

The thing is, the Australian Tax Office has extended Australian tax laws beyond our borders to include goods from foreign nations

So Australian tax laws are no longer just "Australian" but now are also "Global Australian" tax laws

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Kind of yes and kind of no, but only because they went with the vendor collects model, and introduced the seller's (or EDP's) turnover into the mix (note, Australia is not the first to use a vendor collects model, nor will they be the last - I've said it before, but I would not be surprised in the least if eventually, and it may take decades, there is a global tax agrerement with regards to international trade, much like the one that's been in place for postage, but I digress).

GST has always applied to imports of $1000 or more, no matter where the item came from, nor the seller's Aus turnover (and the threshold was only that high because they would have lost more than they gained by collecting it on imports under that value), so this new legislation is (strictly speaking) not an extension to suddenly include international goods, but a lowering of the threshold to $0, but in cases where the order total is under $1k, it's only applicable if the seller's (or EDP's) turnover is $75k or more into Aus. 

They reckon that at the moment, compliance is around 50%, which means the legislation and the way it's been implemented is only being applied to around half of the imports that it should be. They also reckon that in a couple of years, they will have a system that wouldn't rely on the vendor collects model, and compliance will increase dramatically - that means people may consider the current system a grace period; just not as good as the one we had when it only applied to imports of $1k or more.

[peterkm123]

The fact remains that a tax has been imposed on used items from foreign nations. A dispicable act, is the only way to describe that

How many foreign sellers of used items would be making $75,000 from clearing out their garage ?

And they might have old items that are simply not available in Australia

Since the low value GST came in, I check domestic listings first for the specific items I like to buy to see what's available and there's usually nothing, or just worn out **bleep** at high prices. By the Govt's logic, I'm supposed to spend my money locally and buy that **bleep**

[lyndal1838]

The government really doesn't care where you spend your money as long as they get any GST that is due to the ATO.

If you buy it from a small time seller in Australia you will not pay GST but if you buy from overseas you will pay it no matter whether it is from a multinational or a Joe Blow private seller.

Using that logic I would say the ATO is happy for you to buy from overseas.

Digi, we were paying import duties on imported goods over $400....it was well after the GST came in that the threshold was raised to $1000.

[k1ooo-slr-sales]

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@peterkm123 wrote:

The fact remains that a tax has been imposed on used items from foreign nations. A dispicable act, is the only way to describe that

How many foreign sellers of used items would be making $75,000 from clearing out their garage ?

And they might have old items that are simply not available in Australia

Since the low value GST came in, I check domestic listings first for the specific items I like to buy to see what's available and there's usually nothing, or just worn out **bleep** at high prices. By the Govt's logic, I'm supposed to spend my money locally and buy that **bleep**

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if you stop seeing it as a tax on ‘things’ and think of it as a tax on ‘consumption’ you start to understand why some, like me, are not put out by the introduction of GST on low-cost imports.  It hits those who have lots to spend on overseas items, and many people who don’t have money to spend just don’t care!  I don’t consume buy much from overseas, so it hasn’t cost me much.  It would have if it had been introduced 5 years ago when I was buying lots of stuff from overseas, but not now!

To be $100 out of pocket with this GST you would have to spend $1,000.  To be $200 out of pocket you would be spending $2,000.  If you are spending thousands on imports then many people would have no sympathy for you now having to pay GST on imports.  They would be saying to themselves “I wish I had thousands to spend”.  I guess that is why there has been some hostility between posters like myself and posters who are so put out by the GST.

Then there are those who post about how ‘things were cheaper overseas’ but when GST came in they ‘will stop buying things from overseas’.  I mean, if an item was massively cheaper pre-July’18 then it should still be very much cheaper post-July’18 even with GST added on.

If the government allowed for some exemptions on eBay items, like vintage car parts OR items not available in Australia OR second hand items OR items from ‘ordinary joes’, then they would be setting up an avenue for tax avoidance/evasion.

I think the government decided that they could weather the storm over the introduction of GST on low-cost imports, and I think their own internal conflicts have helped to keep this GST on low-cost imports out of the media.  I think they call it the ‘news cycle’ and this one’s cycle has long passed, it’s old news now.

[digital*ghost]

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@peterkm123 wrote:

The fact remains that a tax has been imposed on used items from foreign nations. A dispicable act, is the only way to describe that

How many foreign sellers of used items would be making $75,000 from clearing out their garage ?

And they might have old items that are simply not available in Australia

Since the low value GST came in, I check domestic listings first for the specific items I like to buy to see what's available and there's usually nothing, or just worn out **bleep** at high prices. By the Govt's logic, I'm supposed to spend my money locally and buy that **bleep**

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No, they haven't. New or used is 100% irrelevant to the government - if a used item costs over $1k, it was always going to have GST applied to it if it was imported into Australia (regardless of the seller's turnover) so this concept or practice is not new; where was the "it shouldn't apply to used items" then? Or is this really just a case of "I hate that it now applies to used items I want to buy on eBay" situation? 

They have applied GST on ALL items from sellers turning over $75k or more, and deemed electronic distribution platforms as the vendor for GST purposes. If those sellers did not list on eBay, and sold directly to someone in Australia, the GST would not apply, whether the item was new or used. Accessing the goods may then be a problem, I am sure, so now buyers have to make a choice - easy accessibility and all the other benefits that go along with buying on a platform where GST is incurred, or scouring other avenues to purchase what they want GST-free. 

[brettmoose01]

Incorrect. GST should only be applied if your business has a turnover of $75000 annually. Same should apply for overseas sellers but it doesn't it is a blanket approach.

[davewil1964]

If you had read the 50 (at least) threads after gutterpunk's you would have the explanation. NO overseas seller is charged GST, eBay Australia is, and levies it on the buyer.

Same with Amazon Australia, and any other EDP used to buy from overseas.

If you have issues contact the ATO or the Federal government.