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.

[countessalmirena]

She's fast...

[Anonymous]

That's fantastic and with any luck will slow down overseas purchasing.

Begs the question "Why didn't it happen sooner ?".

I guess anything that hit a voter in the pocket would sting government.

I am very happy with this new system.

[k1ooo-slr-sales]

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@porcelain_dolls_by_me wrote:

I guess we can all thank Gerry Harvey and that guy from Myers Bernie, (whatever his last name is) for mounting a hue political campaign last ear to badger the government into introducing GST on sub $1,000 private imports.

The fact the Productivity Commission proved their (Harvey et-al) claimslow value imports we hurting retailers to be ill-founded the government buckled to them.

End result is that the humble Aussie buyer is charged an extra 10% to line the pockets of the bigger end of town.

Who says money cannot buy favours in politics?

IT STINKS!

---

I read a post on another thread that said something like "if an overseas item that is also available from Australia was a lot cheaper before 1st July it is now still cheaper, just 10% less cheaper" or words to that effect (can't remember who posted that but sounds a lot like davewil logic).  I agree with that.

On a thread a poster said that a piece of medical equipment that costs A$2400 could be bought for $400-$600 from the USA before 1st July.   That item would now be $440-$660 . . . . . still significantly cheaper than buying from Australia . . . . . but just less cheaper.

As for lining the pockets of the top end of town, if an item is still cheaper from overseas then members will still buy from overseas . . . . . and the GST collected lines the pockets of the ATO and Treasury . . . . . and will be available for government spending (or reducing debt).

As for the impact on ordinary Aussie eBayers . . . . . to be $100 out of pocket over a year they would have to spend $1000 . . . . . and to be $500 out of pocket they'd have to spend $5000 . . . . . . hardly likely for those on low earnings who could least afford the 10% hike in low-cost items from overseas sellers.

I know I will cop flack for this comment, but anyone (like collectors) sourcing non-essential items who can't afford a $500 increase in the cost of their total overseas purchases valued at $5000 does not get any sympathy from me . . . . . but those who can only source necessities from overseas do get my sympathy.

There are a lot of threads about the GST on low-cost items at the moment . . . . . but I predict in a years time there will be hardly any.

[brerrabbit585]

From https://www.homeaffairs.gov.au/busi/cargo-support-trade-and-goods/importing-goods/duty-rates-and-tax...

From 1 July 2018, goods with a customs value of AUD1000 or less (low value goods) may attract the Goods and Services Tax (GST) at the point of sale if imported from overseas by consumers in Australia.

There will be no changes to:

• the AUD1000 threshold for reporting and collection of duties and taxes at the border
• border clearance processes
• the flow of goods across borders
• current import requirements for tobacco, tobacco products or alcoholic beverages.

From  https://www.homeaffairs.gov.au/Trav/Impo/Buyi

Things you buy over the internet will have the same rules, duties and screening processes applied as any other import.

You need to know that:

• For goods with a value of AUD1000 or less, there are no duties, taxes or charges to pay at the border.
• From 1 July 2018, the Goods and Services Tax (GST) may apply to low value goods when imported from overseas by consumers in Australia. However, the GST will be charged at the point of sale and not at the border.

[k1ooo-slr-sales]

@brer

I was just about to post something that would help members avoid paying GST on low priced eBay items . . . . but decided not to.

There are loopholes that can be exploited, but I aint sayin nuffin!

[brerrabbit585]

Best to keep quiet. You don't want to be charged with aiding and abetting tax avoidance. 🙂

[brerrabbit585]

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@porcelain_dolls_by_me wrote:

I guess we can all thank Gerry Harvey and that guy from Myers Bernie, (whatever his last name is) for mounting a huge political campaign last year to badger the government into introducing GST on sub $1,000 private imports.

The fact the Productivity Commission proved their (Harvey et-al) claimslow value imports we hurting retailers to be ill-founded the government buckled to them.

End result is that the humble Aussie buyer is charged an extra 10% to line the pockets of the bigger end of town.

Who says money cannot buy favours in politics?

IT STINKS!

---

Back in January you said this:  "... if I am forced to play by their rules (which I do) then why should a competitor be given a free kick by EBay."

What's the difference between that and tax?  It should be a fair playing field for everyone.  When the GST was brought in, personal income tax was reduced and sales tax was abolished.  Over time, a lot of people started buying overseas, with the result that they avoided paying their share of tax via the GST, but now the govt has closed that loophole so that everyone pays their share, same as before online buying took off.  Or do you think that tax is only for some and not for others? 

Plenty of rich people probably got rich by buying from overseas and not paying any GST, so this will catch those people too.  Why do people think only the poor people buy from overseas?  From what I've read in the forums, there are a lot of people buying from overseas just to add to their collections, not to buy essential items.

[countessalmirena]

I admit buying from overseas primarily for things I want rather than things I need. I love collecting Georgian silver and writing boxes (no later than 1820), for instance. If I buy from overseas sellers whose annual turnover selling to Australian customers is more than $75,000, I will expect to pay the GST. I don't like it, but c'est la taxe sur la valeur ajoutée. I'd still rather see taxes in play than have a situation where every man is expected to fend for himself. Taxes are unavoidable in a centralised civilisation.

I also love collecting CDs and books. I prefer to purchase from Australian sellers.

If I can't get an item here - OR if it's absolutely outrageously more expensive here (such as the Russian historical dictionary I once bought at $160, whereas I could now buy that from overseas for $20) - then I will look globally.

I wish we had more things such as furniture crafted here in Australia. I'm sure I'm not the only person who'd prefer to support a thriving local economy of handmade goods of excellent quality, rather than buy things that have been outsourced to be made in China, Thailand, Taiwan, etc.

[brerrabbit585]

Time to bump this, methinks.

[countessalmirena]

eBay members who are confused about GST on low value imported goods are encouraged to read this thread, and to post questions here (or on other recently started forum threads), rather than posting on other GST threads that were started a year ago or 2 years ago. The older threads will almost certainly contain information that is no longer relevant, or perhaps misleading information, and that's frustrating for people looking for relevant information here and now.

It helps to have up-to-date information.