Tax issues and requirement for imported goods?

Hi there,
I'm planning to buy a small amount of everyday goods (with a value of less than 1000 AUD) from my home country, mail them to Australia and sell them on eBay as a sole trader.I want to test the viability of starting my business in Australia, I may do this kind of trial for one or two times before deciding whether to go further.

1. I'm wondering, do I need to get an ABN if I'm just testing the viability of the idea at first? Or can I get one if I think the idea is viable?

2. As a sole trader, if my imports are under AUD 1000, will I also get import tax exemption? Do I have to pay any other taxes?

3. What other laws and regulations do I need to be aware of when selling on eBay, apart from ABF import and labelling requirements and ACCC mandatory Australian standards for goods?

4. What shipping options are available to sellers on eBay? 

Cheers

Steve

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Re: Tax issues and requirement for imported goods?

It is very simple and no abn or accountant is needed to order a bunch of items you wish to resell. As you mention labelling and meeting safety standards may be an issue with some products as you may be liable for issues that can arise.

 

I used to buy lego from the US and Europe and that was easy as it meets all safety standards. Selling no name brands can be an issue with some items so it really comes down to what you will sell.

 

My advice is to take the time looking in to what you can get and try and avoid popular items that are already saturated and the price is to low to make a decent profit. The other part that makes it hard is if you do find some decent products you can sell it will only be a matter of time before someone else notices and copies what you sell unless you have agreement from the manufacturer to be the sole importer for that product.

 

I have seen sellers who spend time looking through what is available then try a small amount like 10-50 before committing to buying 100-1000 where prices will be cheaper.

 

It is worth trying to sell items that can be sent as a letter which is under 2cm in thickness as postage can be as low as $2.20.

 

Lastly don't spend more on stock if you can't afford to lose that amount if it turns out worthless.

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Re: Tax issues and requirement for imported goods?

It would pay to do your own research and homework.

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Re: Tax issues and requirement for imported goods?


@domino-710 wrote:

It would pay to do your own research and homework.


Exactly,  any one who takes tax advise from a forum,  needs their head read

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Re: Tax issues and requirement for imported goods?

images (6) - 2023-06-02T141700.180.jpeg

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Re: Tax issues and requirement for imported goods?

Are you intending on importing and selling electrical goods? (including cables &/or chargers)

 

Are the items niche items?

 

Are the items being imported from China?

 

Are the items clothing or mobile phone related?

Are they food or organic materials?

Are they pre-packaged?

Are sellers here already selling these items?

 

There are reasons behind me asking these questions.  The answers will enable you to get relevant information.

 

I am not asking you to mention exactly what the items from your home country will be, but your Opening Post is just too vague for me, and others, to proffer any advice beyond what has already be offered.

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Re: Tax issues and requirement for imported goods?

1. I'm wondering, do I need to get an ABN if I'm just testing the viability of the idea at first? Or can I get one if I think the idea is viable?


You’ll need an ABN if you have an annual turnover of $75,000 or more. Below that threshold, it’s optional – but you should speak to an accountant to be aware of the nitty gritty details and consequences.

 

 

2. As a sole trader, if my imports are under AUD 1000, will I also get import tax exemption? Do I have to pay any other taxes?

 

Importing items to resell is different to importing for personal use. Your should discuss this with a licensed customs broker or at least preliminarily with your business accountant. You’ll not find anyone willing to stick their neck out and give you specific advice to your specific case on a public forum, especially in light of customs and tax complexities that can impact the appropriate advice.

 

3. What other laws and regulations do I need to be aware of when selling on eBay, apart from ABF import and labelling requirements and ACCC mandatory Australian standards for goods?

The fact that you are asking this question tells me you have not spoken with an accountant. Get yourself an accountant with experience in advising small businesses. The question is too wide in scope without specific details, for one thing.

 

 

4. What shipping options are available to sellers on eBay? 

Post/ship as you wish. If your items are not low value (where you can afford to absorb losses for the occasional lost parcel (whether legitimate or not), you’ll be wise to use tracked postage. You can use AP or couriers or just offer local pickup. If you use AP, MyPost Business is anecdotally better and cheaper than using AP through eBay’s labels. Sendle (courier broker) has been pushed by eBay but many buyers hate it - read the boards for the various perspectives. Which method and which couriers etc you use is up to you.

 

 

 

Basically - and this might sound unkind - do your own research. It’s your money on the line. You should read the Help pages on eBay, in particular the ones about selling. The boards will always be here for experienced member-to-member advice, help, insight or opinion, but when you have these sorts of questions about the bedrock of being a seller, you’re going to need specialised professional information just to decide whether your plans are viable.

 



I’ll add one more thing. Have you ever sold anything on eBay before? In particular, have you sold anything on eBay during the last two years? If not, I strongly suggest you be registered as a new seller (you do not need to have a business account to sell/be a seller on eBay, and you’d lose the perquisites that a personal account offers), make sure you are ID-verified and bank-account-verified as per the Managed Payments requirements, be prepared for the “new seller” holds, and list a few relatively low-value items from around the house, to get used to eBay as a seller, perhaps encounter some of the pitfalls, and to build up some seller feedback. (But read the Help pages with the selling policies etc first.) There are really two separate things you need to deal with: selling on eBay, and setting up this business idea of yours. They are not the same thing and you should prepare and research both separately.

 

Search on help for “register as new seller” and the appropriate Help page should come up.

 

 

Good luck, and get yourself an accountant.

 

 

 

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Re: Tax issues and requirement for imported goods?

LOL - and don't ever forget - the ATO.

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Re: Tax issues and requirement for imported goods?

It is very simple and no abn or accountant is needed to order a bunch of items you wish to resell. As you mention labelling and meeting safety standards may be an issue with some products as you may be liable for issues that can arise.

 

I used to buy lego from the US and Europe and that was easy as it meets all safety standards. Selling no name brands can be an issue with some items so it really comes down to what you will sell.

 

My advice is to take the time looking in to what you can get and try and avoid popular items that are already saturated and the price is to low to make a decent profit. The other part that makes it hard is if you do find some decent products you can sell it will only be a matter of time before someone else notices and copies what you sell unless you have agreement from the manufacturer to be the sole importer for that product.

 

I have seen sellers who spend time looking through what is available then try a small amount like 10-50 before committing to buying 100-1000 where prices will be cheaper.

 

It is worth trying to sell items that can be sent as a letter which is under 2cm in thickness as postage can be as low as $2.20.

 

Lastly don't spend more on stock if you can't afford to lose that amount if it turns out worthless.

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