EBAY is wrongly charging GST ON postage,GST only applies to the item price and not postage

[ambler57]

Be aware ebay is wrongfully charging 10% GST on the  postage cost at checkout when buying from an international seller when buying on ebay Australia.GST should only apply to the item and NOT the postage costs 

[lyndal1838]

Yes, Australia is a signatory to the Universal Postal Union Agreement.   Every country that is a signatory keeps all the money paid into their postal service.  They also deliver for free all postal items sent to their country from any other signatory country.

Just as Australia delivers mail from the USA for free, so the USA delivers mail in their country from Australia for free.

Legislation pertaining to the low value import GST allows for the GST to be charged on postage, just as it is on the importing of items over $1000 including postage.

Just because Australian postage is GST free for international mail does not mean that mail from other countries is treated the same way.

Do you know that there is a tax on postage in the USA or the UK?

[k1ooo-slr-sales]

@machboxmick

We all agree that postage is a service. Postage from overseas is nothing to do with ebay

It is when it is included in an eBay transaction i.e. paid for through ebay.

- it is between a private seller (not registered for GST) and you the buyer.

For the purpose of taxing overseas low-cost imports eBay, as the Electronic Delivery Platform, are deemed to be the supplier of goods. Nothing to do with the status of the eBay member who sells the goods.

Tax would have been charged on this service at point of origin when the seller posts your item (ie USA to Aus)

I don't know so will not pass judgement

International postage is GST free (domestic is not).

A common misconception repeated by people who don't understand or bother to read up on domestic GST or the GST on low-cost imports. In Australia, there is no GST on postage for items sent overseas (exports) but the legislation for GST on low-cost imports does allow for collection on the postage components of low-cost imports.

These are the basic facts

You may see what you post as being facts, but they are not. They are your interpretation and/or misinformed opinion.

So why in hell are we now getting GST on postal costs ?

Because GST is charged on the total amount for the transaction.  If postage was excluded it would open the door for tax avoidance or manipulation.

Either the government or Ebay are ripping people off and it needs better clarification on this point as many are unhappy about it

No ripping off going on.  Nobody makes people buy from overseas, and eBay are remitting the GST collected to the ATO.

There is plenty of information about GST on low-cost imports available through eBay,  the ATO and other sources (including these discussion boards).

I don't mind paying GST on the goods as I know Gerry Harvey's racehorses are getting hungry but not the postal charge.

You really lose credibility when you make this sort of comment.

Can anybody clarify that if I get a parcel delivered from the US then they claim all the money and nothing is passed to Auspost to cover their cost of delivering the item (its a mutual thing around the world between postal services  ?)

Have a read of this webpage about the UPU:

https://en.m.wikipedia.org/wiki/Universal_Postal_Union

[matchboxmick]

Kl000-sir-sales

"

I don't mind paying GST on the goods as I know Gerry Harvey's racehorses are getting hungry but not the postal charge.

You really lose credibility when you make this sort of comment."

You really don't have a sense of humour about you do you - so sad?

"

International postage is GST free (domestic is not).

A common misconception repeated by people who don't understand or bother to read up on domestic GST or the GST on low-cost imports. In Australia, there is no GST on postage for items sent overseas (exports) but the legislation for GST on low-cost imports does allow for collection on the postage components of low-cost imports."

You also seem to have a 'high and mighty,  I am superior' attitude about you so please don't presume I don't read the about the GST as I run my own company. There has never been GST charged on incoming mail costs or in reality every item I used to get posted from the US meant I would have had to pay the taxman 1cent on every 10 cents of postage stamp ( and not just a letter as there may have been certain valueable items in said envelope ). It seems the US postal has now been deemed a 'service' by this government so making it liable

[matchboxmick]

Just because Australian postage is GST free for international mail does not mean that mail from other countries is treated the same way.

Do you know that there is a tax on postage in the USA or the UK?

Yes I do so it now gets taxed twice

[k1ooo-slr-sales]

You really don't have a sense of humour about you do you - so sad?

Actually, I think I have a pretty good sense of humour.  I was mistaken, I thought you had posted a serious post about an issue you felt strongly about.  Maybe Obviously I was wrong!

Others have posted about Gerry and his horses.  When posted in amongst other GST concerns it really does lessen the credibility of the post.

Spoiler

don’t be sad, I’m not

You also seem to have a 'high and mighty,  I am superior' attitude about you

I don’t think so.

don't presume I don't read the about the GST

Yet you were asking why you have to pay GST on postage from a private seller not registered for GST?

The legislation makes it clear, the ATO website makes it clear, the multiple threads on these discussion boards contains information and links that make it clear.  

Since 1st July 2018 the only members who haven’t understood this have been those that haven’t read up on it and have applied domestic GST logic to the low-cost imports GST debate.

Many have been surprised when it is spelled out to them, especially when members make the claim that international postage is GST free when discussing GST on low-cost imports.

There has never been GST charged on incoming mail costs or in reality every item I used to get posted from the US meant I would have had to pay the taxman 1cent on every 10 cents of postage stamp ( and not just a letter as there may have been certain valueable items in said envelope ).

Without knowing the value of the items you have imported I can’t know whether that type of item has now been caught up in the low-cost GST introduction or whether the small envelopes that may have contained ‘certain valuable items’ have successfully avoided GST/import charges on the import/postage of items valued over $1,000 by not having compliant customs declarations.

It seems the US postal has now been deemed a 'service' by this government so making it liable

Yes

[digital*ghost]

Whenever GST has been applied to imports, it has always included the cost of shipping.

Not only that, but before the GST was extended to low value goods (<$1000 AUD), GST was charged after other import duties were applied, meaning they add the goods value, shipping and insurance costs, all duties payable, then charge GST on that total. (This is still how it works for >$1000).

Now that GST has been extended to include low value imports, I honestly don't understand why so many people are surprised it applies to the total value, where value = cost to purchase & import - just like it always has.

[k1ooo-slr-sales]

@digi

Can you clarify something for me as I have not been an importer of high-value goods, ever.

Could someone avoid tax on >$1,000 goods by having the goods shipped as two packages, each under the $1,000 threshold?  This would be possible for shipments of, say, 200 x $5 widgets by having them shipped as two 100 x $5 widget parcels (I know this example is not taking shipping into account, so let’s say the $5 per widget includes shipping).

Would an ‘importer’ be charged on cumulative value of imports over a set period of time (like per month or year)?

[digital*ghost]

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@k1ooo-slr-sales wrote:

@digi

Can you clarify something for me as I have not been an importer of high-value goods, ever.

Could someone avoid tax on >$1,000 goods by having the goods shipped as two packages, each under the $1,000 threshold?  This would be possible for shipments of, say, 200 x $5 widgets by having them shipped as two 100 x $5 widget parcels (I know this example is not taking shipping into account, so let’s say the $5 per widget includes shipping).

Would an ‘importer’ be charged on cumulative value of imports over a set period of time (like per month or year)?

---

Customs can combine the value of multiple shipments from the same merchant, even if shipped via different carriers, but whether they actually will is hard to say. 

If the packages were shipped under the same consignment, with a single invoice, they'd treat it as a single shipment, even if the packages don't arrive together. If they are shipped under multiple different consignments, it will probably depend on how far apart they each arrive. 

I have purchased  multiple lots of <$1000 goods in the past, a few weeks apart, but occasionally they ship very close together. However, the shipping companies my suppliers use seem to pick up on it, and maybe to avoid customs hassles, will delay the dispatch of whichever one was shipped second (i.e. tracking has shown in the past that one will stay at the origin point far longer than normal, but once the first package has cleared customs and the local courier arm has it on its way to me, they'll dispatch the second package). Sometimes the second one will take a different route, as well. o.O (I don't ask for this to happen, just to be clear, lol, I'm prepared to pay import charges if any of my shipments attract them, but I think the couriers like to avoid it as well as it means no delay / backlog). 

I suspect that for the sake of ease, customs don't (or won't often) apply duties and taxes retroactively, since once it's been cleared and released, they obviously can't withhold anything until payment, so if they arrive long enough apart for each one to clear independently, most buyers wouldn't have to cough up for duties. 

i can't guarantee it, obviously, that's just been my personal experience. 

[cdizon2006]

wrong, you are importing the goods, not the postage service.

it is always been that way, the cost of goods are declared, not including postage.

The australian customs does not charge gst on postage, they charge gst on

cost of goods.

[cdizon2006]

no it does apply to cost of shipping.

i have been importing goods for more than aud1000.00 and australan customs do not charge gst on cost of shipping.