" GST on low value imported goods - if you sell through an online marketplace" any news?

[rudolphonline]

Hi,

Any one on eBay heard any news regarding to police update about " GST on low value imported goods -  if you sell through an online marketplace"  ?

ATO recently relase an article regarding to new GST rules of sale low value goods on online marketplace.

Any feedback or policy update from eBay ?

Thanks

[dlr4573]

"I can understand why Amazon might not want to collect and remit the GST.....too much trouble for them but why would small businesses and private sellers follow them".

I think the person may mean business and private people who operate outside Ebay.

Apparently, if they have +75k turnover inside Australia, they have to register for GST.

I still cannot find out what happens with smaller businesses.

Presumably your goods will stay in customs until you pay the GST component.

Or they charge you, but pocket it!

I do not have good vibes on the unintented consequences:-).

[lyndal1838]

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@dlr4573 wrote:

"It is no more work than giving a full refund for a faulty/missing item.....hit the button and it will all be refunded".

Unless the payment was included in Ebay's last forwarding of the GST component to the ATO.

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As a matter of interest, do you have anything to do with the GST in your everyday life?

Businesses deal with refunds everyday, and it does not matter when the refund is done....just because the GST was remitted to the ATO last month it does not mean you have to apply to the ATO to be able to give a refund this month.

The refund is given immediately (including the GST amount) and the correction is made the next time you submit your BAS.  Surely you don't think the ATO has to physically give you back the GST amount before you refund your customer.  It is all in the paperwork!!

[lyndal1838]

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@dlr4573 wrote:

"I can understand why Amazon might not want to collect and remit the GST.....too much trouble for them but why would small businesses and private sellers follow them".

I think the person may mean business and private people who operate outside Ebay.

Apparently, if they have +75k turnover inside Australia, they have to register for GST.

Every Australian business with a turnover of $75000 or more has to be registered for GST and collect and remit it to the ATO.

I still cannot find out what happens with smaller businesses.

Businesses with less then $75000 turnover do not have to register for GST and do not remit any money to the ATO.

There is no way the ATO can force an overseas business to register for and collect GST

Presumably your goods will stay in customs until you pay the GST component.

Currently it is a grey area......I have not seen anything official about what happens to items coming into Australia from small businesses and private sellers.  As I see it, Australia Post is going to have to get involved but somehow I think they will resist it as long as they can.

Or they charge you, but pocket it!

All prices in Australia are GST inclusive.   If the business/entity is not GST registered then they do just that....they pocket the money.  This is why small businesses can undercut larger businesses...they do not have to add the 10% GST to their items.

This is another reason why you should not register for GST unless you absolutely have to.....as soon as you are registered you have to remit 10% to the ATO (and increase your prices if you need to).

I do not have good vibes on the unintented consequences:-).

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[dlr4573]

But most business in not an enormous International online company dealing with exchange rates.

I think Amazon's reaction proves that it has consequences.

It will be interesting to see as more companies show their policy.

[dlr4573]

As a matter of interest, do you have anything to do with the GST in your everyday life?

Businesses deal with refunds everyday, and it does not matter when the refund is done....just because the GST was remitted to the ATO last month it does not mean you have to apply to the ATO to be able to give a refund this month.

The refund is given immediately (including the GST amount) and the correction is made the next time you submit your BAS.  Surely you don't think the ATO has to physically give you back the GST amount before you refund your customer.  It is all in the paperwork!!

Yes, and if that "paperwork" involves extra work, the costs will be passed on.

https://which-50.com/as-amazon-blocks-australians-from-its-international-sites-alibaba-and-ebay-are-...

Even Ebay has had a change of heart, and it was digging it's heels until recently so it's hardly a non issue.

I have spent some time researching the implications, and for me personally, the original Ebay model (auctions) no longer works.

As a collector/purchaser of -1k items, I will have no chance of winning many OS auctions where I have to factor in 10% extra 

especially if combined with a weak dollar.

If we had the same range as Americans and Europeans inside our borders, it would not be as bad, and I believe the

EU has a threshold of around $40.00.

The trend for a few years has been business selling "Buy now" items and individuals having a fixed price and I suppose if

that is your main use, even with another 10%, many items will still be cheaper. (Especially the ones you cannot buy here:-). )

[brerrabbit585]

Believe it or not, ebay is computerised.  They don't have to sit down and work out the gst on any individual transaction.

I'd say the Aussie govt has two aims with this tax - to stop so much money flowing out of the country so that our economy doesn't end up like those countries that have completely banned ALL overseas purchases for private individuals.  Just be thankful you don't live in one of those countries!

The second aim would be to raise revenue, something they've been losing out on since ebay and online buying became so popular.  20 years ago most items coming into Australia would have been shops importing large consignments that attracted customs duty, but with the advent of online buying the govt has been missing out because things would have arrived in smaller batches.  We're still way better off than we were back then, even if we have to pay an extra 10%, because we're still cutting out the middleman and buying direct.  The items I buy for my hobby used to cost more than twice what I pay now because I had to buy from a shop that imported them.

[brerrabbit585]

I'd suggest that ebay initially refused to collect the tax because they were more worried about sales slowing down, not because they had to collect the tax. In other words, they thought that by refusing to collect the tax (by not allowing Aussies to buy overseas on ebay) the Australian govt would scrap the tax.

[11dixieboy]

your also going to pay it on the shipping as well 

[lyndal1838]

Yes, of course you are going to pay it on the shipping/postage component.

Shipping is a Service and it is a Goods and Services Tax.