GST on all imports July 2018

[rapadaan]

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

[maranock]

I turn over less, and am registered. it is not a big impost and I am not giving the gov 10% of my income. Like all registered businesses I collect GST on all sales, and then give it to the government. It was not my money to begin with.

Being registered means that I can claim back the GST I pay on everything I buy for my business, which is a lot as I am a farmer.

[digital*ghost]

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@jamecos_1 wrote:

Anyway, back on topic: What will be the next step? GST on all ebay sales import and domestic?

I can see some ebay sellers regestering as a buisness and GST even under the $75k sales as they can claim back any GST paid.

I have a Pty. Ltd. under $75k and GST reg. I claim back all GST paid and do BAS quarterly, It is a pain but my clients need GST charged so they can claim back.

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Claiming back GST is only of any benefit when you have to collect GST, but since buying from someone who does not collect GST never affects the actual price paid for the item or service, there is simply no point in a business "needing" to buy from people who also collect GST.

For example, say I sell an item for $50, and I am not yet registered to collect GST. Then I have to register, so my item goes up to $55. My clients have a greater out of pocket expense for that item, but they end up paying exactly the same cost for the item itself, and are no better off if they are also registered to collect GST. If they're not, then they just pay more for the product. The only real way a GST-registered business gets a benefit from purchasing from other GST-registered businesses is if they want to pay GST on items because they find it easier to have more offsets when they pay their own GST bill.

Re: the bit about eBay adding GST on to items sold domestically. It's quite an interesting situation right now, and I'm really surprised this hasn't been brought up before.

For the purposes of GST added to eBay domestically, ebay is a service provider and Australians are individual sellers / businesses, so GST is only added to the cost of eBay's service (fees).

For the purposes of the international GST rules, ebay is [for all intents and purposes] now the vendor of the goods, and the GST has to be added to the price of goods from all individual sellers. 

It is illogical and a contradiction that I haven't seen brought up anywhere, as yet. 

[*tippy*toes*]

Sorry Padi, the Caltex servo doesn't count as a large Australian company! 

[davewil1964]

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@c_mount wrote:
Good? Are you serious or just wealthy to throw money around and hand over the hard earned to greedy beaurocrats??

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Nothing wrong with supporting the Australian economy. Our balance of payments is in enough red already,

I only buy from overseas when I can't get it here. I am by no means rich, but I would not like to see the pool of jobs shrink too far below the level of those looking for them.

That way lies recession, or higher taxes to pay for the extra welfare. Or both.

Besides, as I said, from MY point of view (as a seller), anything that makes my offerings more competitive is welcome.

[davewil1964]

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@kalior1 wrote:
No good when you 30% to 50% dearer but at least the government will make some money off it...

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I AM 50% dearer than some of my UK competitors. This will make me 40% dearer. I still have people buying from me, but this could well mean more do.

Not a bad thing for me, or Australia, if the money stays here.

[padi*0409]

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@*tippy*toes* wrote:

Sorry Padi, the Caltex servo doesn't count as a large Australian company! 

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I don't want to even try to imagine working in a servo for 20+ years Tippy...............eeeek    

[hector.pascal]

The BIG problem is that the Government are so busy trying to screw GST out of us, they've lost sight of the fact that very many small personal  eBay purchases cost much less than $30 per consignment. If they try to impose disproportionate "service fees" to collect the GST component, many of us will simply say "No thanks, don't want it at that price, you can confiscate the delivery to recover your costs".
The real problem is that they have not yet worked out a minimum value that will make it worth taxing very small purchases - the "de minimis" value - currently $400 in NZ, (I believe?)

H-P

[davewil1964]

They've solved it for eBay.

No threshold, eBay collects from the buyer and remits it to the Commonwealth. Ergo, no admin fee for the Commonwealth.

Amazon has chosen not to play, which penalises Amazon by lower sales, and Australian buyers by lesser choice.

Personally, as I rarely buy from OS and never through eBay, it won't affect me as a buyer. If my occasional OS purchase attracts GST, so be it. I only buy from foreigners if I can't get it here.

I have no idea why you think the NZ threshold is relevant. It is a different country. The minimum threshold is theoretically $0. Provided they can persuade sellers to opt in. Which in the case of eBay, by proxy, they have.

[brerrabbit585]

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@davewil1964 wrote:

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@kalior1 wrote:
No good when you 30% to 50% dearer but at least the government will make some money off it...

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I AM 50% dearer than some of my UK competitors. This will make me 40% dearer. I still have people buying from me, but this could well mean more do.

Not a bad thing for me, or Australia, if the money stays here.

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You'll actually be less than 40% dearer than them from July.  I realise you may have kept it simple for some people.  

If your price is $15 and your UK competitor's current price is $10, you're 50% dearer.

From July, their price will become $11 and yours will still be $15, which means you'll only be 36% dearer than them.

[tennis_sweetspot]

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@hector.pascal wrote:

The BIG problem is that the Government are so busy trying to screw GST out of us, they've lost sight of the fact that very many small personal  eBay purchases cost much less than $30 per consignment. If they try to impose disproportionate "service fees" to collect the GST component, many of us will simply say "No thanks, don't want it at that price, you can confiscate the delivery to recover your costs".
The real problem is that they have not yet worked out a minimum value that will make it worth taxing very small purchases - the "de minimis" value - currently $400 in NZ, (I believe?)

H-P

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If they put a minimum value like $400 or even $200 then you will find the number of packages coming thru customs under that new low value threshold would go thru the roof as buyers and sellers collude.

If you don't want to pay the GST then don't consume and you won't pay a cent!!

There are too many of us (businesses and individuals) dodging tax already.