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 

[k1ooo-slr-sales]

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@maiken123 wrote:
If you are going to disagree with my post, at least do me the courtesy of reading it 😞
Australian Taxation does not have jurisdiction outside Australia and thus cannot charge GST on INTERNATIONAL freight/postage! Of course they charge GST on the goods, just not the freight component!

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also, a common mistake members have made when posting on these boards is to apply traditional GST rules for purchases made in Australia to items bought from overseas sellers on eBay.

The common arguments about why GST should not apply because of:

- items being second hand,

- seller doesn’t have an ABN,

- seller is a ‘mum and dad’ seller not a business,

- seller sells less than A$75,000 per year into Australia, OR

- postage is not by Aust Post

just do not apply to GST on low-cost imports bought through eBay or other online platforms.

Your statement that “Australian Taxation does not have jurisdiction outside Australia” should, according to your simplistic interpretation of GST rules/law, be extended to GST not being due on overseas purchases at all!

[davewil1964]

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@maiken123 wrote:
If you are going to disagree with my post, at least do me the courtesy of reading it 😞
Australian Taxation does not have jurisdiction outside Australia and thus cannot charge GST on INTERNATIONAL freight/postage! Of course they charge GST on the goods, just not the freight component!

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So you agree the goods are covered by the GOODS and services tax, but according to you freight (a service) shouldn't be covered by the goods and SERVICES tax.

You are correct that the ATO doesn't have jurisdiction outside of Australia. Once anything hits the border, though, they certainly do. The Australian Government legislated it, so maybe you should complain to them.

You will doubtless already know, given your obvious familiarity with taxation law, that EVERY import over $1000 (including postage/freight) has been subject to GST, as well as Customs duties, since the GST was implemented in 2000. Why didn't you bring up the unfairness of taxing freight then?

[eol-products]

I read the article and was surprised at how many "mays" they have regarding GST being charged. 

Probably explains why I came across a US website yesterday that had a pop-up mentioning that they noticed I was from Australia and that no GST would be charged on total sales below $1000. 

[rockyroad77]

Couldn’t agree more.  EBay’s GSP is outrageously expensive.  EBay will justify their excessive shipping charges by including insurance and tracking.  In reality, it would be rare anyone makes an insurance claim.  Tracking is just another opportunity for eBay to charge fees and costs.  Couriers these days are very reliable (not many packages go astray)

After a few years (and tips from fellow eBayers) l’ve

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@lyndal1838 wrote:

It is one thing to charge the GST on the superinflated GSP shipping charge, but IMO it is offensive to charge another fee to do so.

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@lyndal1838 wrote:

It is one thing to charge the GST on the superinflated GSP shipping charge, but IMO it is offensive to charge another fee to do so.

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realised just how much of a rip off eBay is. ☹️

[davewil1964]

The GSP is not run by eBay. Your issue is with Pitney Bowes.

You could always not buy from sellers who use the GSP. Problem solved.

[pkwilko123]

The ATO community website clearly states that GST is not applicable on international postage to Australia but having stated that, they (the ATO) still collect GST on any international postage to Australia as well as on the goods purchased as per the quote below

https://community.ato.gov.au/t5/Knowledge-Archive/GST-on-postage-on-online-purchases/ta-p/13448#:~:t...

"The retailer you bought it from purchases $20 for international postage. The retailer is not charged GST by the foreign postal organisation because international post to Australian delivery addresses is GST-free.

Chair

      $80

International Postage/delivery cost

      $20

Total without GST

    $100

                                                                    GST 10%

      $10

Total inc GST

    $110

"

This is wrong, The ATO are ripping everyday buyers off and this should be corrected. How much free GST are the ATO collecting as a result of this?

[padi*0409]

Look at the link you provided again and you'll see :-

"The postal services by Australia Post to the foreign postal organisation are also GST-free."

The relevannt part is "TO the foreign postal organisation are also GST-free", which is indeed true - if you buy postage for an overseas letter/parcel you DO NOT pay GST on it.

[davewil1964]

No point complaining here, unless you are looking for a mug to complain for you.

You're perfectly free to complain to the ATO or the relevant ombudsman. Given the Australian Government legislated that GST IS collectable on all imports at landed costs (ie including postage) I doubt you'll have much success, but it will give you something to do while you're locked down.

[countessalmirena]

@pkwilko123,

You're not the only person to harbour this misapprehension, so I'll quote from a post I made (addressing this very issue) on the GST when buying overseas - a few FACTS thread.

   ❛GST on the shipping/postage component is payable

   Quite a few people post on these boards with confusion or indignation about being charged GST on the shipping component of their low-value imported goods purchase.

   To clarify - yes, we as the buyers must pay GST on the postage from overseas to Australia for our purchases.

   ❝When you purchase goods sourced from overseas, shipping and/or insurance costs form part of the price of the delivered goods on which GST is calculated.❞

   - Information for consumers

   If the seller sells to you directly, AND is required to be registered for GST, the seller collects the GST on the goods plus the shipping/postage, etc.

   ❝If you sell the goods directly (for example, through your own website) and you are registered or required to be registered for GST, you should charge GST on these sales unless they are not subject to GST under Australian law (known as GST-free or input taxed sales).

The GST on your sale will be 1/11th of the price the consumer pays. If the amount paid includes fees for shipping or insurance, these amounts typically form part of the price of the goods when calculating the GST.❞

   (Bolding mine.)

   If the seller sends the goods to a re-deliverer (freight forwarding company), then the seller does NOT collect GST from the buyer. Instead, the re-deliverer collects the GST on the lot, including the cost of the goods, plus the cost of shipping, fuel surcharge, repackaging costs, insurance, etc.

   ❝Special rules for re-deliverers calculating GST

   If you are a re-deliverer, the GST you charge will be:

• 10% of the amount paid by the customer for the goods, plus
• 1/11th of the amount the customer pays for your services to get the goods to Australia. As a re-deliverer, GST applies to all of your services, including international transport services and insurance for the transport of the goods.

   Example

   Jia wants to purchase a coat for the equivalent of A$200 from Clancy's, a store in the United States. Clancy's does not ship its products to Australia.

   Jia contacts Take-it-Home Co to help her bring the coat to Australia. Take-it-Home Co provides her with an address in the United States. Jia buys the coat from Clancy's, which ships the coat to this United States address. Take-it-Home Co then arranges for the coat to be shipped to Australia.

Take-it-Home Co is registered for GST and charges Jia A$44, including A$4 GST, for the services it provided to bring the goods to Australia. It also charges Jia A$20 in GST on the coat, which is 10% of the amount Jia paid to Clancy's. Take-it-Home Co returns A$24 in GST to the ATO.❞

I hope that helps to clarify the situation.

[lex7402]

Yes but the payment has gone to an overseas courier company which has no ato association. So where is this 10 euros here there going riddle me that? Has to be ebay because the ato cannot collect tax from another country simple.