Why is Aus GST applied by eBay on items sold in USA and delivered in USA?
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?
16 comments
gutterpunkz05
·2 years agoJust a bit of help from google
However, under the new Florida Online Sales Tax Bill, which took effect on July 1, 2021, online sales in Florida will be taxed at 6% at the point of the sale. In other words, this law will require out-of-state retailers to collect taxes on orders set out for Florida addresses
gutterpunkz05
·2 years agoAnd a bit from Florida Revenue, which indicates that just as ebay is required to collect GST for the ATO on LVI to Australia, they are also required to collect Sales Tax on behalf of Florida Revenue, for all sales that are to be delivered to Florida.
Many out-of-state businesses, such as large internet retailers, already collected and remitted sales and use taxes to the Florida Department of Revenue prior to passage of Chapter 2021-2, Laws of Florida.
Additionally, effective July 1, 2021, marketplace providers are required to electronically register to collect and electronically remit sales and use tax on taxable sales they facilitate for marketplace sellers for delivery into Florida. A separate electronic registration application is required for each place of business located within Florida. Out-of-state businesses can submit one application for all out-of-state locations. The information required in this electronic application is provided in the Florida Business Tax Application for Marketplace Providers and
gutterpunkz05
·2 years agoI could be wrong, but I think Florida is one of the states that charges taxes on purchases from other US states.
Items delivered to the US – sales tax
Tax laws vary between states, and sales tax may be required to be collected by the seller, collected by eBay, or paid directly by the buyer. If your delivery address is in one of the US states where either the seller or eBay is required to charge sales tax, the tax will be included in the order total at checkout.
If the item's being sent from outside the US, the recipient may have to pay duty and customs processing fees. However, items under $100 which are a gift will generally be cleared without any additional charges.
countessalmirena
·2 years agoThe paperwork shows it, but the parcel forwarders also know the order of responsibility.
countessalmirena
·2 years agoThey’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
·2 years agoWould 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?
countessalmirena
·2 years agoIt’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
·2 years agoHowever eBay's algorithm is unlikely to discriminate, It will be something along the lines of "Australian purchaser, foreign buyer = GST"
babycino356
OP2 years agoThis is also my understanding, hence my original question
davewil1964
·2 years agoHence my original answer - ask the ATO.
NB: the advice given on these boards is generally worth what you pay for it,
countessalmirena
·2 years agoWas 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.
babycino356
OP2 years agoYes the US address was applied before the purchase
sugar249
·2 years agoWhere is the buyers account registered?
babycino356
OP2 years agoBuyer 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
·2 years agoMaybe you have confused the system, because of where the purchasers address is. Only a guess.
davewil1964
·2 years agoMy 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.