GST on all imports July 2018

[rapadaan]

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

[papermoon.lady]

Undervaluing has indeed happened too.

[digital*ghost]

Overseas sellers with an Australian turnover of less than $75k per year, and who don't sell on sites like eBay will not have to register to collect GST, same as Aussie sellers, so those purchases won't be subject to the tax.

That would be one of the reasons eBay protests the change - it gives buyers a reason to shop elsewhere.

[zanadoo_56]

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@papermoon.ladywrote:

Really? I have no idea why some sellers did it with my parcels. I thought it happened to others too.

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I've never asked any seller to fudge the C22 form but some seem to do it as a matter of course. 

Recently I took delivery of a parcel I expected to come from the UK.  I guess the seller was a drop shipper, but even so I didn't expect it to come from Sweden, marked as gift (it wasn't) and the contents described as Office Supplies (it wasn't that either).

I've had toys from China marked as computer parts (not gift this time but Sample or something) and decorative notebooks marked as cleaning aid (!!) and ticked Other.  I'll say.

Peversely, I've had a few sellers overstate the value which I sure hope I won't see again if extra charges are going to be levied.

[tangledstitches]

I used to buy a lot from a website in the US who always put either $10 or $20 value on the envelope or box, even if it was worth $500! It was quite stupid really because she always put an invoice in with the goods and it had the proper value on it, but anyone with half a brain would know it had to be worth a lot more.

[melbourneclearance]

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@digital*ghostwrote:

I'm not registered to collect GST at the moment, so I don't know if a "GST deferred account" is something only available to sellers who are

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dg, GST registered sellers can defer their GST payment until the end of the financial year. So in this case they don't need to pay the GST when the goods come in, but they will still have to pay it eventually.

I don't understand how the Aussie government can know which overseas seller has a turnover of A$75k or not. I mean, I know we spy on absolutely everyone, but we can now penny-count every seller in Timbuktu?

I guess this is good news for Aussie sellers in general as there will be no more $1 everything-you-ever-wish-for items FREE shipping from China. The 10% extra GST won't get them but the extra security fee will. This also spells trouble for the Aussie sellers who buy small quantities from overseas and reselling the items.

But this is great news for sellers who already currently import more $1000 per transaction from overseas. Their smaller competitors will be at least 10% pricier overnight.

[papermoon.lady]

Well, I assume that if they don't declare the right turnover they will face tax evasion if they find out. I guess the Gov doesn't know everything about ordinary Aussies either (in spite of spying).

There are 2 Chinese shops with a lot of the usual stuff from China where I live (now next to each other!) and if the security fee is approved probably not much will change for them as they buy in bulk of course. For me if I sometimes need some of that stuff it will be easier to buy from them rather than paying the s.f. and waiting for economy postage to arrive.

[tangledstitches]

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@papermoon.ladywrote:

Well, I assume that if they don't declare the right turnover they will face tax evasion if they find out. I guess the Gov doesn't know everything about ordinary Aussies either (in spite of spying).

There are 2 Chinese shops with a lot of the usual stuff from China where I live (now next to each other!) and if the security fee is approved probably not much will change for them as they buy in bulk of course. For me if I sometimes need some of that stuff it will be easier to buy from them rather than paying the s.f. and waiting for economy postage to arrive.

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How is the Australian govt going to charge an overseas seller with tax evasion?

[papermoon.lady]

Maybe it won't be called tax evasion, but I assume there will be penalties...

[digital*ghost]

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@melbourneclearancewrote:

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@digital*ghostwrote:

I'm not registered to collect GST at the moment, so I don't know if a "GST deferred account" is something only available to sellers who are

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dg, GST registered sellers can defer their GST payment until the end of the financial year. So in this case they don't need to pay the GST when the goods come in, but they will still have to pay it eventually.

The 10% extra GST won't get them but the extra security fee will. This also spells trouble for the Aussie sellers who buy small quantities from overseas and reselling the items.

But this is great news for sellers who already currently import more $1000 per transaction from overseas. Their smaller competitors will be at least 10% pricier overnight.

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Thanks for clarifying about the GST deferred account. 🙂

The latter part pretty much describes me - so far I have ensured all of my imports come in under $1k, and while I do have some competitors in Aus, most of them are smaller businesses like mine, so we'll all be in the same boat from July 1. 

It won't quite result in a 10% increase to my prices, though, unless I take the plunge and register to collect GST, as the GST on my stock purchases only increases my cost by 10%. I will likely continue to keep my imports under $1k as well, since AFAIK that will allow me to avoid other import duties. (Well, for as long as I can, anyway, it's getting harder to do as my range increases). 

Just in general re: customs declarations - some sellers I have bought from have a section during the order process where the buyer nominates what is declared to customs (both for goods value and postage). I don't take advantage of that (i.e. I just put in 100% for both), but there are many out there willing to do it, and some just do it by default. I can't see how it would work for a business seller, though - if you underdeclare the goods value for tax purposes, wouldn't it look weird if it suddenly cost more on tax returns or a BAS? Doesn't seem worth the initial lie, as then you either have to keep trying to lie, or end up paying more tax on the profit. o.O 

[lyndal1838]

Digi, just a few points.....you may already know but I will mention them in case others are reading.

If you are contantly importing small amounts of the same items from the same sellers to avoid import duties/fees then Customs can add all those small parcels together and treat them as one large shipment.  Depending what side of the bed the Customs Officer got out of, he can then add a fine for avoiding fees and duties.

Customs do not base their fees on the declared value on the form on the individual package.  When you are importing regularly you have to submit your invoices to Customs....all the paperwork is done well before the actual package hits Australian shores.

The only time a value on a parcel may come into play is if there is a query from Customs or the parcel is lost and an insurance claim is being made.  You have to produce the official invoice and if the value is different to that declared on the parcel Customs might jump on you from a great height and make you pay a fine for under declaring the value.   If it is a claim for loss/damage the compensation will be based on the declared value, not the invoiced value.

Either way....YOU LOSE!!