GST on all imports July 2018

[rapadaan]

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

[lyndal1838]

The GST is 10%.....full stop.

What you are talking about is the import tariff rate and if you are not importing goods worth over $1000 it does not apply to you anyway.

There is a zero threshold now and all low value items plus postage attract GST of 10%.

Although it does not apply in this case.....if you are ever charged an incorrect tariff you can apply to Customs for a refund.   This would normally only occur on shipments over $1000.

[k1ooo-slr-sales]

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@2486buffyslay wrote:Really the only relevant question is:

Is the AU$ value of the item over $1,000 ? If no then 'NO' GST - 'PERIOD'!

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I will address your only relevant question by referring you to this thread that contains some links you really should read as it addresses all the now non-valid arguments you make about being charged GST on items below $1000 value.

https://community.ebay.com.au/t5/Buying/GST-when-buying-overseas-a-few-FACTS/m-p/2171248#M92475

There is nothing to be gained by trying to debate the rights and wrongs of GST on low-cost imports as doing so will not appease those who are vehemently opposed to this tax that is here to stay.

Spoiler

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@2486buffyslay wrote:

What if I'm buying an item from an overseas eBay seller that is 'NOT' subject to the 10% GST as I have a copy of the 'Australian Customs Tariffs Schedule' to prove this! The item I'm buying comes under Tariff Clasification 4911-91 Stat Code 28 Which states the item is only subject to a 5% (NOT 10%) GST. So if the item I'm buying only attracts a 5% GST how then can eBay be charging a 10% GST on it? Are not eBay therefore in direct violation of 'Australian Customs' tariff regulations?

Is your schedule dated post 1st July 2018?

Further the item I'm buying is less than AU$ 1,000 and therefore under Australian Customs Regulations is NOT subject to GST in the first place! Therefore it makes no difference what the tariff classification is since it won't apply! So really the questions is how can eBay be charging a 10% GST on the item (to be imported) that under Australian Customs assessment will NOT be subject to GST as the item's value is 'UNDER' AU$ 1,000!

Not since 1st July 2018

I can understand if the item is never imported, but that's not the case here! Really as I see it, for items under AU$ 1,000 eBay appears to be in direct violation of Australian Customs regulations! The ONLY situation where eBay should be applying any GST (not necessarily 10% as it would depend on the tariff the item comes under) is if the item is AU$ 1,000 or more in value! But then this is the job of Australian Customs 'NOT' eBay to determine! eBay are 'NOT' 'The Australian Tax Office' and therefore do 'NOT' have 'ANY' regulatory authority to impose 'ANY' tax! 'PERIOD'!

 
They do since 1st July 2018

Next how would I (or eBay) know if an overseas seller has a turnover of AU$75,000 or more in a 12 month period i.e. is registered for GST? (though 'WHY' would an overseas seller register for GST since they're not even subject to Australian tax law!) If I ask a seller "How much do you earn in a year" you can bet the response will be "F-OFF - NONE OF YOUR BUSINESS!" So if I don't know how would eBay know? I mean suppose all the sellers I deal with actually earn under this! Also how do I obtain a copy of this ATO list of 3000 eBay sellers that the ATO supposedly assessed to see if they would likely meet the AU$75,000 threshold? I can bet you the sellers I deal with aren't even on this list!

Does not apply to low-cost imports since 1st July 2018

Also would that figure of AU$75,000 not be extremely unfair! for example if the exchange rate were only 0.5 (for buying British pounds) this means a seller would only have to earn 35,000 GBP rather than 75,000 GBP making this extremely unfair on the buyer if the exchange rate is always less than 1.0! In fact I've effectively already paid the GST through the exchange rate since the exchange rate is effectively already the cost of importing the item i.e. an exchange rate of 0.5 means I've already effectively paid a 50% GST on the item!

Are you starting to see a pattern to my responses?  You should.  NEW RULES have applied since 1st July 2018 . . . . . . . . BUT, this ‘absolute value’ is nonsense. Think about it, what if I buy something that is listed in Indian Rupiah? Should GST apply to only those sellers who sell more than Rs. 75,000?

Spoiler

effectively paid 50% GST . . . . . . now I have heard it all.

Absolute nonsense.

Finally what if the item I'm buying from an overseas seller isn't available in Australia (same argument could be put about expensive ‘one-off’ imported cars, wouldn’t make it relevant) - which it is 'NOT'! How then am I depriving an Australian seller of income if there are 'NO' Australian sellers of the item? Therefore there can be 'NO' justification for charging me GST on the item for the reason of depriving an Australian seller!
Finally I'm buying the item 'NOT' from eBay (eBay are 'NOT' a seller!), but from an overseas seller (nor are sellers 'agents' of eBay and eBay is mearly the 'location' they operate from like a physical marketplace). Indeed eBay 'THEMSELVES' have clearly backed this "IRREFUTABLE "FACT" up:

“eBay is "NOT" a seller!. eBay is "ONLY" a third-party online marketplace that simply connects buyers and sellers”.

 
NEW RULES have applied since 1st July 2018.

Overseas sellers are therefore NOT subject to Australian tax law! Therefore most of what I've said above is completly irrelevant! Really the only relevant question is:

Is the AU$ value of the item over $1,000 ? If no then 'NO' GST - 'PERIOD'!

Most of what you said above is completely irrelevant . . . . . . . . but not for the reason you put forward.

To summerise, What happens if I buy an item from an overseas seller that is to be "imported" and that item:

a) Attracts less than 10% GST under the 'Australian Customs Tariff Schedule'
b) Is worth less than AU$ 1,000 and therefore not subject to GST under 'Australian Customs' assessment - which negates the above
c) The seller earns less than AU$ 75,000 per year or is not registered for GST
d) The item is not available in Australia i.e. there is 'NO' Australian seller of the item!
e) The item is 'NOT' being bought from eBay, but from an overseas seller - as stated by eBay themselves!

To summarise,
a) the rules changed on 1st July 2018
b) exchange rates and application of Australian taxes have always been based on A$ value of goods

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[a_zh838]

I understand GST is 10%, but why does a $8.50 USD item have a import charge of $6.59 USD? Isn't that a bit extreme?

[k1ooo-slr-sales]

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@a_zh838 wrote:

I understand GST is 10%, but why does a $8.50 USD item have a import charge of $6.59 USD? Isn't that a bit extreme?

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I am guessing that the item you bought is being shipped by the GSP, meaning that Pitney Bowes, acting as the re-deliverer of your item, are the ones collecting the GST and preparing the customs documentation.

As such, they charge an “import charge” . . . . . . and just to rub salt into the wound, you are paying GST on the import charge!

[cassowarey]

I just got charged a separate 10% fee after buying something from the UK. It didn't show at checkout either, just on my credit card. I've bought ebay stuff from overseas before and never had to pay GST til today.

[davewil1964]

Obviously because this is the first item you have bought since 1 July.

The topic of this thread and most of the hundreds of responses is the imposition of GST on all purchases made from OS on or AFTER 1 July 2018.

If it makes you feel better, every single Australian eBay member purchasing from overseas is in the same boat.

[bargain4me2]

When the item fails to arrive and you go through all those hoops and hurdles to get your money back, then the GST refund shows up. Even though it was sitting in the Government bank account for 'how long' accruing interest, we will be hit with 40% tax on the 10% GST before it gets returned.

[davewil1964]

Then you offset it against your GST next month/quarter.

Or start a company and only pay 27.5% tax.

[xerxes_au]

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@davewil1964 wrote:

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.

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Hah, don't know what world you live in but I'm Australian and I pay 80% of my income in rent.

[xerxes_au]

Re-read that previous post and saw the "2 of 3" but you can't edit a message in here more than 2 minutes after you post it.

The reality with eBay now charging GST is that it wont go away, _ever_.

However other realities are now that people will move to purchasing directly from chinese companies (completely legally) to avoid thousands in GST charges. I know this is what I will be doing.

For dollar items not worth saving GST on, I won't use the platform for purchasing again until they fix the next issue:

ebay has implented the GST, putting Aus sellers at an "apparent" 10% price disadvatage by using bait and switch tactics with the prices of OS sellers wares. Aus sellers include GST in their price, but ebay springs the GST on the buyer for OS sellers at checkout. The sort by price filter is now broken. Not to mention its not legal to charge GST after someone has entered an agreement to the purchase  "buy-it-now" and is then informed of the charge after. While it may be technically legal to fill your cart with shopping, and then tack on charges at the checkout before they have agreed, it's still a deceitful business practice.