GST on all imports July 2018

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

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GST on all imports July 2018

I knew they could combine multiple shipments from the same sellers if they arrive around the same time, even if shipped through different carriers, but didn't know how far they could apply it.

 

I don't know if I've just been lucky, but I purchase 2-3 times a month from a couple of different sellers, so I tend to have at least one shipment arrive per week*, the contents are always different, though (by which I mean I won't buy multiples of the same product and have those shipped separately, but what I buy does mostly tend to fall under the same categories and tariff numbers), no idea if that makes a difference or not. 

 

 

 

*A short while ago I had one shipment from a seller arrive early in the morning, clear customs and get delivered, and then later that day a different package arrived, cleared customs and was delivered. Both were from the same seller, but from different websites (though I never expected that to make a difference - they have one site for small quantities and another site with a bigger range and much larger quantities, but it's the same company regardless), each under $1k in value but combined would have been over, and both delivered by DHL (hence the speedy clearance and delivery). The orders were mae a couple of weeks apart, but shipped only one day apart, so I considered myself pretty lucky that day. 

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GST on all imports July 2018

Importing goods over $1k is not just a simple pay the 10% GST. Will the new law charge the importers of under $1k goods all the extras? I import both over and under $1k, and on my over $1k sea imports I see the following extra charges in addition to the GST and port/terminal charges:

 

- Import Processing fee

- Admin fee

- Handling charges

- Customs clearance

- AQIS lodgement

- Import duty

- Agency handling

 

These all add up to over $300. I remember similar charges for an air order which was over $1k some time ago, which was delivered by FedEx. I assume couriers will charge most of these extras if they have to do extra work, if not full customs brokerage charges then some other paperwork charges.

 

As it is now, this new law is still a little unclear. We need a guinea pig come July 1.

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GST on all imports July 2018


@melbourneclearancewrote:

Importing goods over $1k is not just a simple pay the 10% GST. Will the new law charge the importers of under $1k goods all the extras? 

 

 


I'm assuming the additional charges for under $1k won't apply, purely because that would eliminate the purpose of the vendor collects model for under $1k but keeping things how they are for over $1k. 

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GST on all imports July 2018

Wouldn't the global shipping program solve this GST tax?

When using this program it already adds the GST for goods and services over $1k so I can't see why it wouldn't work for goods and services under $1k. I know there isn't a lot of sellers using it however ebay could make it an option for us Aussie buyers when we check out.

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GST on all imports July 2018


@tradingcardworld2010 wrote:

Wouldn't the global shipping program solve this GST tax?



Unfortunately that won't work.

 

The GSP isn't something that's facilitated by eBay in real terms, but Pitney Bowes, a third party. It's also optional for international sellers, and not implemented on all sites (currently only available on eBay US & UK), while the new GST needs to be applied to all international purchases Aussies make on eBay, under $1k (purchases over $1k don't actually need to have the GST applied at point of sale, because they will be handled the same way they always have been when they arrive in Aus). 

 

The GSP has other drawbacks that would make handling the new GST very difficult, or at least more expensive than it needs to be, as you can't get combined postage rates and the individual postage rates are over-inflated in many cases, so it would increase those not currently being shipped through them by much more than 10%, I think - and the current formula adds other customs and duties to the final price, so they would not only need to implement it on all sites, but create a system that only applies GST to sales under $1k, but then all applicable charges if it goes over $1k, but only from the same seller.

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GST on all imports July 2018

My guess is ebay will be adding the GST from July 1 for all overseas sales. The pdf has this clause:

 

https://www.ato.gov.au/law/view/pdf/pbr/lcr2018-001.pdf

 

 

23. An EDP is a service (such as a website) that is delivered by means of electronic communication and which allows entities to make supplies available to end-users.11 The Act extends the existing provisions about EDPs, which apply to inbound intangible consumer supplies, so that they also apply to offshore supplies of low value goods (with some differences in application).

 

 

The next clause also covers all the couriers. They will be charging 10%.

 

What is not clear to me is how this will pan out. Say, I buy something for $100 from a supplier, the supplier (who has no clue that our government will be charging him 10%) goes to DHL and THEN finds out that he needs to pay 10$ of the value of the goods. Obviously he will come back to me and demand 10%. It's going to be chaos. Everyone will be accusing everyone else of fraud.

 

The Australian government cannot force every overseas supplier to register for GST in Australia, but they can force ebay and the postal couriers.

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GST on all imports July 2018


@melbourneclearance wrote:

 

 

 

The next clause also covers all the couriers. They will be charging 10%.

 

What is not clear to me is how this will pan out. Say, I buy something for $100 from a supplier, the supplier (who has no clue that our government will be charging him 10%) goes to DHL and THEN finds out that he needs to pay 10$ of the value of the goods. Obviously he will come back to me and demand 10%. It's going to be chaos. Everyone will be accusing everyone else of fraud.

 

The Australian government cannot force every overseas supplier to register for GST in Australia, but they can force ebay and the postal couriers.


I don't think it's all couriers, going by the wording of the clause. Especially since technically, the courier contract is between them and the seller (that is, the courier is supplying a service to the seller, not me as the buyer, for all intents and purposes, even though I obviously receive the service as well).

 

Anyway, it actually states "redilverers", "Redeliverers are generally entities which have an arrangement with recipients to bring goods to Australia. These arrangements usually involve the redeliverer providing an address outside Australia to which goods are delivered, after which the redeliverer arranges for the goods to be sent to Australia from that address."

 

That sounds to me like it's actually forwarding services they're talking about, where you buy from a seller, get them to send to an address within that country, and then the service sends to the buyer. 

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GST on all imports July 2018

c_mount
Community Member

Socialism and control is all that matters and the sheeple applaud Nanny.....no freedom to buy anything anymore unless it's what Nanny says. The range of anything in Australia is a joke.

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GST on all imports July 2018

Then ebay will die simple as if they try to block us from buying abroad. I am sick and tired of the BS about 'security' when its nothing but Orwellian measures to control!!
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GST on all imports July 2018

Well we do have to fund Mr Turdbull's big pharma plans and help his stakeholders....
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