The following link provides some very clear information on the new GST when buying from overseas. It's fairly short and to the point.
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.
Bump and additional information...
Quoting from Requirements once you are registered:
❝As soon are you are aware Australian GST is likely to apply to the sale of goods, Australian consumer law requires that you display a GST-inclusive price.
If you are unsure whether Australian GST will apply, you can display a message about the potential for additional taxes to apply. As soon as it is clear that GST applies, you must show the GST-inclusive price.❞
It's impossible for eBay to know whether GST applies to the sale until:
- the buyer submits the delivery address;
- the total amount of the purchase is known;
- the buyer is established to be a consumer (explained here); and
- the goods are established not to be GST-free (explained here).
Shopping cart payment summaries for GSP and non-GSP items
When you add the GSP item to your cart, you'll see a payment summary that looks like this:
Subtotal (1 item) AU $xx.xx
Postage to 1234 🛈 AU $xx.xx
Import charges AU $xx.xx
When you purchase non-GSP items from an overseas eBay seller, the GST collected by eBay will be more clearly shown (with less confusion):
Item (1) AU $xx.xx
Postage to 1234 🛈 AU $xx.xx
GST AU $xx.xx
When you hover over the 🛈, it says:
You'll see postage options and costs on the Checkout page.
Checkout for GSP items
I'm using an example showing a GSP item from the UK, not the US, but there's no real difference in terms of what is shown on this page. Once you are on the checkout page, you'll see the payment options, the delivery address, and then this:
Review item and postage
Seller: [sellername] | Message to seller
1 x Dirt SuckerUpper Super HEPA HIPPY HAPPY Vacuum Cleaner. GBP xxx.xx
Quantity 1
________________________________
Import charges 🛈
No additional import charges at delivery
GBP x.xx
When you hover over the 🛈 next to "International Priority Shipping", it says:
This amount includes seller-specified domestic
postage charges as well as applicable postage
and handling fees, but is independent of import
charges. For additional information, see the
Global Shipping Program terms and conditions.
.
When you hover over the 🛈 next to "Import charges", it says:
This amount includes applicable customs duties,
taxes, brokerage and other fees. Exclusions apply.
For additional information, see the Global Shipping
Program terms and conditions.
On the right column, you'll see something like this:
Subtotal (1 item) GBP xxx.xx
Postage GBP xx.xx
Import charges GBP xx.xx
________________________________________
Order total GBP xxx.xx
You agree to the Global Shipping Program
🔒 Confirm and pay
This does give the buyer the necessary information before clicking onto Confirm and pay.
Lumping the GST together into "Import charges" is confusing, leaving buyers unsure about what portion is the GST and what portion is PB's "brokerage and other fees". However, the GST-inclusive price is shown and that's what's necessary.
NOTE: this post is only about the required GST information on the item, in the cart and in checkout. It doesn't address any GST invoice issue.
