Import Charges

[diverdan05]

I have purchased a few second hand items from both the UK and USA and noticed these attract  'Import Charges'. eBay's help section lists under "Items imported into Australia or New Zealand";
 

"eBay is required to collect GST on orders up to AU $1,000 imported into Australia or up to NZ $1,000 imported into New Zealand.

If an item is located outside Australia or New Zealand and the buyer selects an Australian or NZ delivery address, eBay will add GST to the order total at checkout.

eBay also has a link to the ATO's website, so I clicked on this. I could not locate anything on the ATO's website relating to GST for second hand goods. I did however locate Tax Ruling SHG 2015/31.

https://www.ato.gov.au/law/view/document?LocID=%22GLD%2FSG201531%22&PiT=99991231235958

This ruling only applies to Registered Entities ( Businesses ).

Why is eBay charging members GST on the importation of second hand items when the only taxation ruling applies to registered businesses?

[sandypebbles]

Same reasons that were all explained to you last time you asked the same question

Did you bother to read them?

https://community.ebay.com.au/t5/Buying/Why-is-Ebay-charging-GST-on-used-items/m-p/2404654#M119930

But at least, unlike last time when you posted a link over 20 years old, your update one is now only 6 years old

How did you go with your reporting them to at ATO etc as you said you were going to do?

[k1ooo-slr-sales]

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@diverdan05 wrote:

I have purchased a few second hand items from both the UK and USA and noticed these attract  'Import Charges'. eBay's help section lists under "Items imported into Australia or New Zealand";
 

"eBay is required to collect GST on orders up to AU $1,000 imported into Australia or up to NZ $1,000 imported into New Zealand.

If an item is located outside Australia or New Zealand and the buyer selects an Australian or NZ delivery address, eBay will add GST to the order total at checkout.

eBay also has a link to the ATO's website, so I clicked on this. I could not locate anything on the ATO's website relating to GST for second hand goods. I did however locate Tax Ruling SHG 2015/31.

https://www.ato.gov.au/law/view/document?LocID=%22GLD%2FSG201531%22&PiT=99991231235958

This ruling only applies to Registered Entities ( Businesses ).

Why is eBay charging members GST on the importation of second hand items when the only taxation ruling applies to registered businesses?

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ok, I’ll try to explain this to you.  I’ll use plain English wording in places as I have forgotten the exact words used when the GST on Low Value Items change came in.

Firstly, stop looking for stuff on the internet to support your view about secondhand goods from overseas sellers.  Anything from before about 2017 is NOT RELEVANT.  The tax ruling you linked to is from 2015.  Anything you find that says that GST does not apply to secondhand items is NOT RELEVANT, as the GST legislation brought in a couple of years ago is applied to ALL LOW VALUE OVERSEAS ITEMS.

The rules for overseas purchases changed some years back.  THERE IS NO TAX FREE THRESHOLD, so anything that mentions “no tax on items under $1,000” is no longer relevant in respect of items bought on eBay from overseas locations.  Even 99c items from China will have GST applied.

The GST on Low Value Items legislation treats eBay as the “seller” for the purposes of applying the GST to low cost items bought on eBay.  There is no A$75,000 threshold for overseas eBay members selling to Australian buyers.  Any reference you find about businesses having under A$75,000 turnover IS NOT RELEVANT when discussing GST on Low cost eBay items bought from overseas sellers as eBay will have greater than A$75,000 of items coming into Australia each year.  They would have more than that coming in from China each week!

eBay does not apply an “import charge” to eBay items bought from overseas sellers.

If a purchase will be sent to a re-deliverer then the re-deliverer is responsible for collecting the GST.  These re-deliverers can, and do, apply a charge for the service they provide.  PITNEY BOWES is a re-deliverer who administer the GLOBAL SHIPPING PROGRAM that operates out of the UK and USA.  There are other re-deliverers, but PB is the main one used.

They charge you:

- the applicable GST on the item cost,

- GST on the shipping costs,

- a fee/charge for preparing export/import documentation

- GST on the fees they charge

PB will bundle ALL these taxes, fees and charges into a lump sum and call it “IMPORT CHARGE”.

AMAZON stopped selling into Australia from overseas when the legislation came in as they were not prepared put in place a system for collecting GST on items bought by Australians delivered in to Australia.  They did, subsequently, have a change of mind and will now do so.  I think the government called their bluff, and they caved!