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Why is Ebay charging GST on used items?
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!
13 comments
roporto
·2 years agoThey are applying GST on products that already have GST charged or accounted for on them, so you are paying double GST. Ridiculous.
davewil1964
·2 years agoDead thread. Bumped to add nothing factual
maranock
·8 years agoWhy do so many people think that GST doesn't apply to used items?
kissfan6900
·3 years agoBecause if the item gets sold 10 times the government is making 100% tax on it in the end
davewil1964
·3 years agoCorrect. But only on any value-adding. If both parties are subject to GST. And I doubt any seller or buyer is going to do 10 iterations.
And hardly relevant to the initial question from FIVE years ago.
gutterpunkz05
·8 years agoDont blame ebay, GST is applicable on used goods, even in Australia. Note when purchasing via ebay, the Government does not care if it is a commercial or private sale, as they have made the platform providers responsible for the GST. Not individual sellers.
diverdan05
·5 years agoI 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
k1ooo-slr-sales
·5 years ago@diverdan, here ya go
https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Information-for-consumers/#GSTandsecondhandgoods
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
greatdollarvalue
·3 years ago** Pitney Bowes, who run the Global Shipping Program have no right to charge GST on used items received from a non-registerefd-for-GST seller.
Besides they already get high margins for their shipping of goods. They are taking advantage of eBay customers who in many instances only realize they have to pay that extra 15-20% after they fill out all their details, when finalizing the transaction, that is, at the payments stage.
** eBay should clarify the GST requirement in the early stages of all transactions.
daydreams_12
·3 years agoDid you look at the date of the last post on this thread???
If you have a problem, start a new one.
Hopefully a Moderator will be along shortly to lock this one.
k1ooo-slr-sales
·3 years agoPitney Bowes not only has a right to collect GST, they have an obligation.
You need to read up on the GST legislation as it applies to eBay items bought by Australians from overseas sellers.
Also, when a freight forwarder is used, the regulations stipulate who collects the GST. Put simply, when an item is addressed/sent to an Australian domestic address the GST is collected. This happens once the item reaches Pitney Bowes under the Global Shipping Program.
k1ooo-slr-sales
·3 years agodid you even bother to look at the post of mine that you were replying to?
I think not, as it debunks everything you posted in reply. It clearly lays out the obligations of re-forwarders.
k1ooo-slr-sales
·3 years ago(the link in my much earlier post is no longer a valid link. Going to the ATO search page and searching for "re-deliverer" takes you to this page https://www.ato.gov.au/General/Other-languages/In-detail/Information-in-other-languages/Goods-and-services-tax-(GST)-when-you-sell-to-Australia/)
from that page you get this: