GST when buying overseas - a few FACTS

[brerrabbit585]

The following link provides some very clear information on the new GST when buying from overseas.  It's fairly short and to the point.

https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Infor...

It makes clear that a 're-deliverer' (such as Pitney Bowes) is responsible for collecting the GST, not the original seller or site it was bought on.  Re-delivers (forward services) don't have to register for the GST if they're under the $75K threshold, same as sellers and EDPs.

Using a re-deliverer

You are using a re-deliverer if you:

• purchase goods and have them sent to a mailbox in another country to be re-shipped to you in Australia.
• use the services of an overseas business that buys goods on your behalf and then helps you bring those goods to Australia.

The re-deliverer will charge GST on the goods and for their services in bringing the goods to you, if they are registered or required to be registered.

The business that makes the original sale should not charge GST, as they are not sending the goods to Australia. This means that you should not pay GST twice.

It also makes clear that GST is payable on the item cost plus the delivery fee (postage).

If you buy something as a gift you still pay GST, same as you would if you go to a physical store in Australia and buy a gift for someone.

It says that if a site thinks it's likely that GST will be payable, the website should display a GST-inclusive price.  If they're not sure if it'll apply or not, they have to say that extra tax may apply.  On this ebay page: https://www.ebay.com.au/help/buying/paying-items/paying-tax-ebay-purchases?id=4771   ebay states that they do display this on listings.  I checked and it's there - but it's hidden away down near the bottom on the payments tab where most people never look.  Technically they've fulfilled their legal obligations but it's a bit of a joke!

This information about the "GST may apply" isn't on GSP listings, obviously because ebay isn't responsible for collecting the GST on the sale.

I couldn't find anything about not being able to charge for collecting the GST but it looks like Pitney Bowes are charging a fee for doing it.  The forms they fill out for customs shouldn't be any different to before because I read on another page that nothing will have GST added to it when it comes through customs at the border, unless it's worth over $1K.  All PB are doing that they weren't before is collecting the GST and sending it to the Australian govt.

I read a bit of other interesting information on other pages (from following the links) but can't remember it all now.  I don't think it said anywhere that a seller (or re-deliverer) has to supply an itemised invoice.  It only said the invoice will usually be GST-inclusive.

[k1ooo-slr-sales]

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@letscleanupmycupboards

 wrote:
Collection fee? For what? Charging the gst?

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previously, Pitney Bowes didn’t have as much paperwork to process for low-value items being sent to Australia as they did not collect GST or process paperwork related to GST.  There are added costs due to the more work they now need to to in collecting and remitting the GST to the ATO, and ironically the import charges they add are also subject to GST being applied.

Pitney Bowes used to charge a lot for GSP and this covered customs compliance checking, repacking where needed, completing the customs paperwork they needed to complete and the shipping cost.  They aren’t going to miss out on charging more now that the GST is in play.

Regardless of how little we think it has added to what they now need to do, as soon as you buy an item using the GSP you are agreeing to pay what they charge, and the seller has no say in what PB charge.  In fact, they aren’t even told what PB charge.

[ivak245]

OK, I have just bought something from overseas, and paid the GST on it through a seperate Paypal transaction. A week later, the item dies on me, the seller has agreed to a refund, what happens to the GST I paid on this? Do I get that refunded too? Has anyone had to do this yet?

[k1ooo-slr-sales]

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@ivak245 wrote:

OK, I have just bought something from overseas, and paid the GST on it through a seperate Paypal transaction. A week later, the item dies on me, the seller has agreed to a refund, what happens to the GST I paid on this? Do I get that refunded too? Has anyone had to do this yet?

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the quote below is from countess’ post number 30 above (her post has live links, mine does not).  It is a quote from the updated eBay User agreement that deals with the GST (and refund of GST).

As far as how you go about getting the GST refunded, it should be automatic if the seller issues the refund through the PayPal transaction.  If the seller refunds and the GST is not refunded you will need to phone eBay, or have them call you back, but be ready to quote the section that countess posted above.

Here it is again:

17. GST on low value imports

From 1 July 2018, Australian Goods and Services Tax (GST) applies to the sale of low value goods (i.e. goods valued at AU $1,000 or less) imported by consumers into Australia.

eBay is considered an Electronic Distribution Platform (EDP) under the relevant legislation and therefore responsible for collecting the GST on low value imports and paying it to the Australian Government. This means that from 1 July 2018, eBay will add GST at checkout on all imports with an order value less than AU $1,000 and remit the GST to the Australian Taxation Office (ATO). We will not collect GST on orders over AU $1,000.

If you are a seller with products located outside Australia, you don't have to collect GST nor remit anything to the ATO in regards to your eBay sales. Any GST that applies for low value goods bought on eBay and imported into Australia is added to the order price and collected by eBay from buyers, then remitted directly to the ATO. You still receive payment for your orders as normal However, you acknowledge and agree that 1) your prices may appear 10% higher to buyers than before if their delivery address is in Australia; and 2) we won't report GST collected to you, although we will indicate on the order details page if GST was collected by eBay.

As a seller, you must not misrepresent the location of your items on eBay and you must comply with eBay's Selling practices policy. Sellers found in violation of this policy may be subject to listing removal, warnings and suspension by eBay.

If you are a buyer, you may see "GST may apply" when viewing items on eBay that are located overseas. You acknowledge and agree that if you buy a low value item on eBay from outside Australia, you will be charged 10% GST on top of the seller's item price (applied in your cart and at checkout). If there is any dispute as to the GST you have paid on an order, you should contact eBay. If you receive a full or partial refund for your purchase, you will also receive a refund for the proportionate amount of GST.

Our Tax policy contains more detail about when we charge GST on eBay. If you have any questions or require more information, please contact the Australian Taxation Office or seek independent tax advice.

[retailtherapist_8]

Thanks Lyndal & KR for your posts. I appreciate the info very much.

I guess it just means for me I will be buying less which I am sure my bank account and Husband will be grateful for lol

I truly do hope this all translates to greater sales for our Aussie Sellers,

I have always purchased locally (Oz) whenever an item I love is available here.

I have saved up over some time now to purchase a particular vintage item that is expensive and the best place to buy it is out of Japan. It is not available here. I will have to let the thought of buying it go as I just dont know what my extra costs are going to be outside of GST ...sad but I will enjoy looking at the $$ still sitting in my balance  

[retailtherapist_8]

i mean thanks k1ooo 🙂

[letscleanupmycupboards]

Davewill it is if it's vintage parts unavailable in Australia

[lyndal1838]

It really is not a lucky dip as you seem to think.

If the item is over $1000 you will pay the GST through Customs as has always been the case.  You pay on item cost and postage and by the time all fees and charges are added you can pay as much as 40% extra....a lot depends on the rate of Customs charges on the item.

If the item is under $1000 you add the 10% to the ebay invoice and pay before the items are sent.

As there is not GSP from Japn the GST will be a straight 10% on the cost of the item plus postage so it is eay to work out before you buy how much you will be paying.

[brerrabbit585]

Time to bump this in the hope that a few people read it before they start spouting their private version of the relevant legislation!

[lyndal1838]

It is much more fun to direct them to the ACCC in the hopes they will finally get the message.

[brerrabbit585]

I'd say leave the ACCC to get on and do its job instead of having people wasting their time on something that's got absolutely nothing to do with the ACCC anyway.