GST on all imports July 2018

[rapadaan]

Yes kicks in  this July  already talking an extra added  $5 security fee !

[k1ooo-slr-sales]

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@ilovethemusik wrote:
Seems Australian buyers are slugged GST Import Duty for all vintage new and second hand goods bought from overseas on ebay now. Yet another cash grab for many who can least afford it.

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I would imagine that those who can least afford it would not be spending much on eBay . . . . . . after all, if they can least afford the GST impost on low-cost imports then the GST component must be significant . . . . . . and at 10% that would mean the items they are buying are expensive, right?  Seems contradictory.

So my question is this . . . . . How much do those who can least afford it spend on eBay each year?  For the GST they pay each year to total $100 they would need to be spending $1000. If their yearly spend is $300 (seeing as they can least afford it then the GST would add just $27 to their yearly spend.  I would argue that if they have financial constraints, possibly due to low paying jobs, then they need to only buy within their means AND INCLUDE GST in those calculations of their yearly spend.

Spoiler

I know I  will probably get criticised for this next comment (wouldn't be the first time on these boards), but I am tired of those who can probably afford this GST on low-cost imports holding up the lowly/lesser paid to bolster their annoyance at having their yearly spend increased by 10%

[davewil1964]

Only their OVERSEAS spend, sir sales.

[k1ooo-slr-sales]

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@davewil1964 wrote:

Only their OVERSEAS spend, sir sales.

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yes dave, you are right, those who can least afford paying 10% GST on imports will not see any increase on the items they buy from Australian sellers . . . . . but the arguments around the introduction of the GST seem to centre on members historically buying from overseas because items have been much cheaper overseas, or not available from Australian sellers.

If their yearly total spend was $1000 split evenly between Aussie and overseas sellers, then this GST introduction will be costing them $45 for the year.

Bottom line is that every member, regardless of income level or disposable income, needs to spend within their means, and that now means factoring in the 10% GST on their overseas purchases.

[countessalmirena]

Agreed. I don't think what you've posted deserves criticism. Yes, there are some in Australia who always go for the cheapest possible item, but I don't necessarily think that it's because the cheapest is all that they can afford - particularly given the sort of items that are being purchased from Chinese sellers. I think it's more a sort of mindset.

For those who are really operating on a very very tight budget, work out what you absolutely NEED, and then start calculating what you can actually afford. Include in the calculations such things as lack of warranty, length of time before items need replacement, electric shock risk and other risk (carcinogenic paint on toys, etc)... and I think once people start doing those sorts of calculations, it very quickly becomes apparent that there are some items they do NOT need, and many items that they should not be buying from Chinese eBay sellers, and so on.

I avoid buying certain sorts of items from overseas sellers.

When I do buy from overseas sellers, I do so because I can't buy the quality of item or the exact sort of item locally... and I now expect to be paying that additional 10%. If I don't have to pay it, it's an unexpected bonus.

[davewil1964]

Food, clothing, shelter. That is what people NEED. 2 of which are available at reasonable prices in Australia. The other is generally not available to import.

[countessalmirena]

Very true; it's terribly easy to conflate things we need with things we really really really want.

And when it comes to chocolate (NEED, not want - I swear it's the truth; I have a... er... a medical condition that makes it necessary for me to have chocolate - Xocolataphilia, that's it), I don't need to import. There are two fantastic Belgian chocolate shops about 35-40 minutes away. I must lobby these two shops to provide intravenous injections of life-saving chocolate.

[k1ooo-slr-sales]

Spoiler

is one of those shops in Lygon St?  If it is, I went there once . . . . 

Spoiler

. . . . . made the mistake of sitting down for a coffee and chocolate . . . .

Spoiler

. . . . . and ended up there for many hours, and many chocolates

[countessalmirena]

Spoiler

I know the shop you're speaking of... No, that's not the one, but it's a great shop, I agree.

My two favourite shops for chocolate are on Toorak Rd in South Yarra, and on Toorak Rd in Toorak. The South Yarra shop is particularly magnificent.

[brerrabbit585]

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@countessalmirena wrote:

Very true; it's terribly easy to conflate things we need with things we really really really want.

And when it comes to chocolate (NEED, not want - I swear it's the truth; I have a... er... a medical condition that makes it necessary for me to have chocolate - Xocolataphilia, that's it), I don't need to import. There are two fantastic Belgian chocolate shops about 35-40 minutes away. I must lobby these two shops to provide intravenous injections of life-saving chocolate.

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The enjoyment of chocolate is in the eating, surely.  That means intravenous injections would be no use at all!

[viewmont1071]

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@countrykids_1 wrote:

Purchased 2 items from overseas sellers , one from a seller that does not sell much and one from a frequent seller with a few thousand feedback under their belt , One item sister Total with postage without GST AUD $287.00 and the other cost Total with postage AUD$298.00 - at the checkout eBay added the GST on both - all good .

Question though if Australians are paying GST on overseas items and you pay eBay the GST then when the items enter the country how do customs know if the GST has been paid ? And the parcel let through , if the you pay the seller as usual the total and postage and eBay collect the GST then even with an invoice attached to the parcel customs will only see the total and postage cost , I don’t understand how customs knows to let a parcel through ? eBay in effect is a third party .

Ebay say they declare all GST to the ATO , but still I can’t see how this will work .

I only see one outcome

- parcel arrives in Australia.

- customs contacts the person the parcel is intended for and holds the parcel , in an Indiana Jones size warehouse with the other hundreds of thousands of parcels.

- parcel recipient has to prove they have already paid GST (Print eBay checkout receipt).

- recipient send receipt , invoice to customs .

- customs try and find your parcel and release it - eventually or not as it’s time consuming and they have more of a work load and are not getting paid more for the inconvenience to themselves.

- nothing happens in a hurry especially when dealing with government departments.

- recipient gets parcel or Australia Post play the parcel loop game from one hub to another.

Please tell me it’s different and EBay +ATO + Customs have their act together and by the time your parcel lands in Australia it’s a well oiled machine and we just sit back do nothing and wait for our parcel to arrive as per normal ?

Yet i I have doubts already as I just noticed after I posted this eBay believes I’ve been a registered user since 2009 ...I joined in 2003 they can’t even get that right ......... faith I have none !

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So, does this mean if an overseas ebay seller does not include Ebays Vendor ID or where applicable ebays gst paid exemption code in the import docs I will be charged GST twice and then I will need to claim it back from ebay?

https://www.homeaffairs.gov.au/Customsnotices/Documents/home-affairs-2018-15.pdf

Goods and Services Tax on low value imported goods – Claiming a GST refund This notice should be read in conjunction with Department of Home Affairs Notices 2018/13 and 2018/14. From 1 July 2018, goods with a customs value of AUD1,000 or less (low value goods) may attract the Goods and Services Tax (GST) at point of sale if imported from overseas by consumers in Australia.

Ensuring accurate reporting on import documentation and in the Integrated Cargo System will assist in preventing double taxation at the border, this includes:

● Vendor ID (GST registration number),

● Importer ID (importer’s Australian Business Number), and

● where applicable, a GST-paid exemption code to identify when GST has been paid at the point of sale.

Where the GST-paid exemption code is not used on import documents, and GST is charged again on the low value good at the border, refunds must be sought from the vendor.

Refunds will not be available from the Department of Home Affairs, Australian Taxation Office, transporter or brokerage service. To seek a refund of GST, consumers will need to provide a receipt or import declaration advice to show that they have paid GST at the border. Vendors will need to ensure that any refunds of GST are reported through the adjustment process when remitting GST to the ATO.

In addition, the GST rules that apply to goods returned in Australia’s domestic market also apply for returned low value imported goods.

This means that if a consumer returns the goods to the vendor, and is provided a refund, they are also entitled to a refund of the GST from the vendor.

Further information for consumers is available on the ATO website at www.ato.gov.au/AusGST.