GST charges for ABN Holders who import low value goods for business use

[bpbakes23]

There has been much discussion on the issue of GST being charged for imported goods of value less than $1000.  I've put questions out to this community and it appears there are a lot of opinions.  I finally have confirmation from eBay on the current process and will address it here.  Hopefully it will clear up all discussion.

If you are an ABN holder that is importing low value goods for business use, you should not be charged GST on your transaction as per the ATO Website

The current process for getting the charge refunded is to contact eBay CS and provide them with your ABN and the Item No's of transactions that it applies to.

Whilst I have not completed this process yet (as in I'm yet to be refunded for a GST charge that I've queried) I've taken a screenshot of the discussion with eBay CS.  It should give others something to reference if there is any doubt from eBay CS clarifying the current process.  Order of emails is from bottom, up.

Let's hope eBay can get a better process in place, sooner.  Maybe if many buyers are frequently contacting them about incorrect GST charges, there will be a high priority on a solution.

[countessalmirena]

bpbakes23, thanks for that. I've typed out the relevant text from that image, and posted it here for everyone's information:

Message sent by eBay - 17 Aug 2018, 19:05
Re: eBay Important Notice SR# 1-173402814856

This message is in regards with your last email about your concern on the GST that has been collected by us from the items you purchased. We have checked the link that you provided (https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Infor...) that says “under the new law, GST does not apply on sales to GST-registered businesses that import low value goods for business use” and have confirmed with our management that exemptions will be given to buyers who buy items overseas for business use.

What we need from you would be your ABN and the item numbers for those specific transactions that charged  you for GST. We will need to confirm these information so that we can validate and hopefully satisfy the requirements for us to process the refund for the GST that were charged for these transactions.

Best,

[eBay customer service rep name]

eBay Plus Ambassador

From: [left intentionally blank]

Sent: 8/17/2018 9:12:43 AM

To: ausupport@ebay.com

Re: eBay Important Notice SR# 1-173402814856

Hi [name]

[...] Does eBay have a process in place that allows a buyer with an ABN to highlight any purchases that are for business use to avoid the GST charge?

Or is the current process for a buyer to contact eBay after the GST charge is made, to request the refund?

Message sent by eBay - 17 Aug 2018 (time not known)
Re: eBay Important Notice SR# 1-173402814856

Hello

G’day, thank you for getting back to us. No worries, we’ll start the process when we receive the needed information.

Currently, eBay doesn’t have that kind of feature thus the current process shall be followed but with your question, I’ll be suggesting this to our higher management.

Thanks for your cooperation regarding this matter,

Kind regards,

[eBay customer service rep name]

eBay Plus Ambassador

[countessalmirena]

From this, I take it that eBay were not properly prepared with regard to the GST collecting for low value imported goods. They haven't set up their software to fully comply with the requirements, which do include not collecting GST from GST-registered businesses purchasing low-value goods for the business.

[davewil1964]

They might be considering that not all overseas purchases are necessarily business purchases. Thus forcing the importer to ask for refunds on a case by case basis.

Pretty flimsy, admittedly, so you're probably right. Although they did seem to manage it for GST on fees.

[bpbakes23]

Thanks for typing that out in case anyone struggles to download the .jpg.

Perhaps eBay didn't prepare properly, or perhaps they didn't think it would be a big problem.  I imagine they would have known about it, and my guess it was a case of "we'll see how big of a problem it is when it happens, as putting a system in place won't be easy", established through a risk analysis or study.

Either way, let's hope they can provide something better than email customer service, after the charge is made.

As a follow up, eBay CS have requested a refund from the finance team and it should take 7-10 days to complete.  And I will get an email when complete.  So that seems as though it's our process.

[maranock]

It really isn't that hard. The tax office says that you can use the Ebay purchase email that tells you how much GST they have collected in preparing your BAS. Just like if you have a tax receipt from an Aussy business. I have just called them for the second time since this came in and they have confirmed it for the second time.

You don't have to ask for a refund, just do it like a normal business purchase.

[melk2611]

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@maranock wrote:

It really isn't that hard. The tax office says that you can use the Ebay purchase email that tells you how much GST they have collected in preparing your BAS. Just like if you have a tax receipt from an Aussy business. I have just called them for the second time since this came in and they have confirmed it for the second time.

You don't have to ask for a refund, just do it like a normal business purchase.

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After speaking to the ATO you CAN NOT claim the GST based on the email from Ebay.

To claim GST you have to have a Valid Tax Invoice and a Valid ABN

[collect247]

Well there you go 2 different answers from the same department,the ATO has well trained people don't they lol.

[padi*0409]

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@collect247 wrote:

Well there you go 2 different answers from the same department,the ATO has well trained people don't they lol.

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Maybe they're employing ex-eBay CS reps crow...............

[collect247]

Maybe the ex ebay CS that shafted me haha