topic Re: Returns and GST in Buying

Returns and GST

jacky5819 — Tue, 10 Jul 2018 06:43:52 GMT

I am a buyer who has already had to pay GST on goods bought from overseas. Yep, annoying but that's the law. My issue is, what happens if I do not receive an item or I need to return it. Will the GST amount be returned to me by ebay? Will this happen automatically?

Cheers!

Re: Returns and GST

countessalmirena — Tue, 10 Jul 2018 11:20:32 GMT

If your claim (for item not arriving or for item significantly not as described) under eBay's Money Back Guarantee is concluded in your favour, you will receive back the full amount of your payment - so far as I am aware.

It will be up to eBay to process and administrate anything to do with the reporting of GST and collection of GST, hence also up to eBay to deal with refund situations. As you personally don't collect the GST and remit it to the ATO, so too you personally will not be out of pocket (or should not be out of pocket) for any GST component if the transaction is cancelled or refunded. But don't hesitate to check this with eBay CS using the Have us call you option. I have my doubts that they will have all the answers at this stage, as everyone's still getting used to the GST on low-value imported goods, but it would be interesting to see just how up-to-the-minute the current information for CS reps is.

Re: Returns and GST

jacky5819 — Tue, 10 Jul 2018 11:39:09 GMT

Thanks. It will be interesting because the GST amount comes out of my account as a seperate transaction. For example, I recently bought something for $6.92, and paid 69 cents GST. Two amounts show on my account. It is not even displayed as GST

on the paypal email, just as an additional amount, sent to gst_au@ebay.com. If a payment is refunded through paypal, how does ebay know to repay the GST?

It will be interesting to see what happens.

Cheers

Re: Returns and GST

lyndal1838 — Wed, 11 Jul 2018 07:48:47 GMT

The GST component goes into an ebay owned paypal account from which they remit the funds to the ATO.

Just as an explanation of how the GST has been working for the last 18 years......if a refund is made for a payment that had GST added you will get the full amount of the refund and it is up to the entity who paid the GST to take the amount into account when they next remit the money to the ATO.

They do not apply to the ATO for a refund of the GST already paid.

Re: Returns and GST

jacky5819 — Wed, 11 Jul 2018 07:57:28 GMT

Thanks Lyndal. I have always understood how GST is paid by companies but have never been in a situation where the GST was paid as a seperate amount by a different entity. In this case, it is ebay and the seller. Usually it is one amount in total. I realise that overseas sellers would have no reason or inclination to collect GST for another country, and that this is one way of ensuring that the GST is collected. I just hope it works for refunds. Time will tell.

Cheers

Re: Returns and GST

brerrabbit585 — Fri, 13 Jul 2018 01:12:27 GMT

From this ATO webpage: https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Information-for-consumers/#Returnedgoods1

The GST rules that apply to goods returned in our domestic market also apply for returned low value imported goods. This means if you return goods and get a refund, you should also get a refund of the GST.

Re: Returns and GST

jacky5819 — Fri, 13 Jul 2018 01:28:32 GMT

Yep, thank you, I realise that is the case. I hope that procedures are in place to ensure that this is done when a refund will come from two seperate entities...the seller and Ebay.

Cheers

Re: Returns and GST

lyndal1838 — Fri, 13 Jul 2018 02:10:18 GMT

There are plenty of instances where a refund comes from 2 sources and it has worked well.

Why should it be any different for the GST?

Why are you constantly looking for obstacles to the implementation of the GST on low value items?

Re: Returns and GST

jacky5819 — Fri, 13 Jul 2018 03:05:21 GMT

Hi Lyndal. I am not looking at obstacles at all. I am not complaining about the implementation of the GST. The law is the law. I understand that the GST is to be paid on refunds.

If an overseas seller makes a refund, they will only refund the cost less GST.

Will Ebay pick up that GST needs to be refunded also or, as a buyer, will I need to contact Ebay for refund.

Simple question. It is about procedure.

Cheers

Re: Returns and GST

k1ooo-slr-sales — Sat, 14 Jul 2018 11:40:22 GMT

@jacky5819 wrote:
Hi Lyndal. I am not looking at obstacles at all. I am not complaining about the implementation of the GST. The law is the law. I understand that the GST is to be paid on refunds.

If an overseas seller makes a refund, they will only refund the cost less GST.

Will Ebay pick up that GST needs to be refunded also or, as a buyer, will I need to contact Ebay for refund.

Simple question. It is about procedure.

Cheers

overseas sellers are not collecting the GST, eBay is. Therefore, eBay would be refunding the GST in the event of a refund/return.

Re: Returns and GST

davewil1964 — Sat, 14 Jul 2018 13:11:06 GMT

@jacky5819 wrote:
Hi Lyndal. I am not looking at obstacles at all. I am not complaining about the implementation of the GST. The law is the law. I understand that the GST is to be paid on refunds.

If an overseas seller makes a refund, they will only refund the cost less GST.

Will Ebay pick up that GST needs to be refunded also or, as a buyer, will I need to contact Ebay for refund.

Simple question. It is about procedure.

Cheers

It certainly seems like you are anticipating trouble. How many returns do you usually 'need' to make to foreign sellers?

Re: Returns and GST

jacky5819 — Sat, 14 Jul 2018 13:20:56 GMT

Hi Lyndal, as per my first comment, I am a buyer only, and I have had occasion in the past to return items and to be refunded for other reasons. I am not sure if you have ever purchased anything from overseas, but I do regularly.

I have even had partial refunds. That opens up another can of worms.

All I want to know is the procedure for claiming back the GST when this occurs.

Perhaps there is someone reading these messages, who has bought an item over $1000 and has had to return it in the past, and get a GST refund. I am sure the procedure will be the same.

Do I expect 'trouble' as you call it? No, but all new systems take a little ironing out and there may be issues. I personally prefer to have a basic knowledge of what to do in advance.

Cheers

Re: Returns and GST

lyndal1838 — Sat, 14 Jul 2018 13:51:51 GMT

I am a buyer only and I have bought some 15000 items, about half of them from overseas.

I have also bought items over the threshold when it was only $400 although I have never had to return them.

Why do you think there will be any difference between refunds from Australian stores and overseas sellers?

Refunds will still work in th same way......you will get the refund in full through paypal who will take part from the seller and part from th ebay GST account. The buyer will not have to do anything, just as the buyer does not do anything to receive a refund through an Australian based store.

Re: Returns and GST

jacky5819 — Sat, 14 Jul 2018 14:15:43 GMT

Hi Lyndal

You are very lucky to have not had to deal with returns.

I am only referring to refunds from overseas sellers. I do not pay GST for items bought in Australia. Why would you even bring that question up?

I am talking about refunds from overseas sellers and GST refunds.

Thank you for your replies

Cheers.

Re: Returns and GST

lyndal1838 — Sat, 14 Jul 2018 15:19:26 GMT

@jacky5819

wrote:
Hi Lyndal

You are very lucky to have not had to deal with returns.
I am not sure that it is luck.....I buy carefully and make sure that I really want the items.

I am only referring to refunds from overseas sellers. I do not pay GST for items bought in Australia. Why would you even bring that question up?

Of course you pay GST on items bought in Australia if the sellers are registered for GST....and several of the sellers you have bought from are definitely registered.

And you pay GST every time you go to the supermarket for example.

I am talking about refunds from overseas sellers and GST refunds.

The refunds on ebay will work exactly the same as any refund from any Australian store that is GST registered. You will get your refund including the GST paid.

The only possible problem I can see is with items shipped through the GSP....it is hard enough to get refunds through the without the GST being involved.

Thank you for your replies

Cheers.

Re: Returns and GST

jacky5819 — Sat, 14 Jul 2018 15:31:47 GMT

Hi yet again Lyndal

I apologise, yes I do pay GST in Australia, I worded my reply incorrectly. I am not a business so do not request any GST refunds at any time. As far as I am concerned, GST paid in Australia is irrelevant to my original question on this board.

I am only concerned with refunds of GST where refunds are made on items purchased overseas.

Cheers

Re: Returns and GST

lyndal1838 — Sat, 14 Jul 2018 19:27:19 GMT

It should work exactly the same way......you return the item....you get a refund, including the GST.

At no point in the refund process does the buyer need to do anything about requesting the refund of the GST paid except perhaps when you are involved in commercial quantites such as the refund for a whole shipment of goods.

Re: Returns and GST

k1ooo-slr-sales — Sat, 14 Jul 2018 21:57:40 GMT

@jacky5819 wrote:
I am only concerned with refunds of GST where refunds are made on items purchased overseas.

and that has been answered several times already.

Re: Returns and GST

lyndal1838 — Sun, 15 Jul 2018 01:58:19 GMT

@jacky5819 wrote:
Hi yet again Lyndal

I apologise, yes I do pay GST in Australia, I worded my reply incorrectly. I am not a business so do not request any GST refunds at any time. As far as I am concerned, GST paid in Australia is irrelevant to my original question on this board.

I am only concerned with refunds of GST where refunds are made on items purchased overseas.

Cheers

I have just reread this post in the cold hard light of day and have realised that you have no idea of how the GST works.

Small businesses do not apply for refunds of the GST. If they get a refund from another business the GST is adjusted in the next remittance of GST to the ATO. Once the ATO gets the GST in it's hot little hands it keeps it....but it just does not get as much in the next remittance.

How this works for big business I do not know but it certainly has no bearing on the current discussion.

Re: Returns and GST

jacky5819 — Sun, 15 Jul 2018 03:36:15 GMT

Hahahaha Lyndal. Oh my, you do see yourself as an expert. You have managed to turn my simple question into something so complicated. You still do not understabd it it not about GST per se in Australia. It is about dual refunds from overseas.

I have been in conversation with paypal and they have been extremely helpful. They will be handling the refunds as such and yep, there are issues. I have the knowledge I need to go forward now.

Thank you Countessalmirena. You advice was very useful. I should have stopped replying after that. LOL

Cheers