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!

[k1ooo-slr-sales]

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@diverdan05 wrote:

I was recently charged this 'Import Charge' by eBay on a second hand item I purchased from the US.

I therefore checked the ATO website and the following is a transcript of the taxes applicable to second hand goods.

It would appear that in accordance the Clause 6 of the ATO's SHG 2000/1, GST shall be applied to second hand goods that a GST registered entity acquires for the purposes of sale or exchange.

If I am not a GST Registered Entity and the goods are for private use, then Clause 6 does not apply and I should not have to pay these GST 'Import Charges' to eBay. 

Maybe the ATO and ASIC should be auditing eBay's financial records?

https://www.ato.gov.au/law/view/document?Docid=GLD/SG20001/00001

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oooopsy!

[k1ooo-slr-sales]

@diverdan, here ya go

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

From that page:

The GST on your item was not collected by eBay, it was collected by Pitney Bowes, who run the Global Shipping Program.

PB charge a fee for services like

- receiving the goods

- processing the customs paperwork

- inspecting the item

- checking that it can be imported to Australia

- re-packing the item where necessary

Spoiler

here’s something I am sure you will love . . . GST is payable on the fee that PB charges you!

[peterkm123]

I didn't realize this thread was still going but for me the result of all this is that my purchases have dramatically decreased since 2018, not only because of the GST on international low value used items, but also because of the sky-rocketing cost of postage by the Global Shipping Program, costs which never seem to be the same on very similar items sent from the same locations. Very inconsistent and far too high.

Too many fingers in the pie IMO, all grabbing an opportunity to make a dollar. It's spoiled the Ebay Experience, a lot of the time now it's a traumatic experience for your hip pocket and mental health.

Hundreds of items, probably thousands, have a postage cost equal to, or multiple times greater than the price of the item. This is what's turning me off buying. I have money to spend but it's accumulating in my bank account, not wanting to feed the parasitical Global Shipping Program which we don't seem to be able to escape from.

Many overseas sellers are insisting on using the GSP making it easier for the sellers, but it's much more costly for buyers. The resistance to it by buyers can be clearly seen in the "Sold" listings. Buyers are searching for bargains like never before.

[katistrophik]

GSP has always been a bad one for shipping, mainly because most sellers don't even know they are offering it.

If a seller enters the dimensions of a parcel and the weight etc then GSP can be quite affordable, but as I said many don't as they are unaware of how it works.

I never purchase off a seller using GSP, but if I did I would contact them and ask if they would send by other means or calculate the parcel as suggested above.

[dvd.horder]

this a good revenue maker 

[davewil1964]

this a good revenue maker 

Relevance? The question has been done to death and answered many times in this thread alone.

[4channel]

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this a good revenue maker 

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@davewil1964 wrote:

Relevance? The question has been done to death and answered many times in this thread alone.

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Well, what dvd.horder has said is both right and relevant. And he has a right to post on this thread.

[katistrophik]

And……….

…..there it is

The reply the bounce was set up for

Spoiler

Told ya.....so predictable LOL

[au.warehouse]

I will be claiming the gst component of all my purchases of second hand goods bought through Ebay in this year's tax return.

I would encourage everyone to do the same.

I would also encourage everyone to write to their member of government to express their concerns regarding the misappropriation of GST applied to second hand goods purchased from private sellers both from overseas and Australia.

[davewil1964]

As you are legally able to do.

The rest of your reply to a THREE year old post I will let you work out. It has something to do with Australian Government legislation. Research it.

Ps: If you buy from Australian sellers eBay don't charge GST. As a buyer, you don't pay GST on purchases. As a seller you do, on the eBay fees.

This is a buyer board thread, presumably you know that?!