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.

[matchboxmick]

I just purchased an item for GBP116 and added to the cost was GBP19.95 postage. When I get my ebay bill I find I am charged GST on both the item and the postage. Where in the world do they charge GST on the postage ! The item I can understand but not this and surely illegal.

Apart from that the item was a present for a mate who lives in the UK so it will not be imported, is a secondhand item, and will never touch  these shores. I just used to add the shipping address I want it to go to when I paid my Paypal bill but Ebay presumes that I live in Oz so its coming here and want GBP13.60 GST - they have no hope

I changed my delivery address in MyEbay to the UK address it will be going to as they suggested and now wait to see if I will get a new invoice reflecting these costs. If not, for the first time since I have been on Ebay, I will just cancel the sale.

[maranock]

Where in the world?... well right here for one. Every time you post something you are charged GST on the postage - it is a goods and services tax, and postage is a service. It has been that way for 18 years.

[k1ooo-slr-sales]

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@brerrabbit585 wrote:
Time to bump this, methinks.

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bumpity bump bump bump

[retailtherapist_8]

I have no problem getting slugged on a brand new item but a second or third hand item? 

I like vintage accessories, bags and jewellery mainly, not available in Oz....wow...it makes a big difference with the extra fees not just the gst component.

The shoes I like are also not readily avaialable in Oz and not sold here on ebay in any great quantity.

The difference now is huge as I buy them mainly out of Europe and the USA. It is however going to save me a lot of money as I just wont buy as much anymore....

I hope it at least does drive more sales for the Australian Sellers. Genuine Australian Sellers not Asains pretending to be located in Sydney. 

[lyndal1838]

What extra fees are you talking about? 

The GST only increases your spending by 10%....not all that much in the scheme of things.

[letscleanupmycupboards]

When you buy secondhand goods privately here in Australia there is no gst payable. So why the heck do we have to pay it for secondhand goods privately purchased overseas. Just doesn't seem right.

[davewil1964]

You are purchasing them through eBay which, de jure, means you pay GST. That is now the law. If you want to avoid GST, buy privately from the seller, if you can.

If you don't think it's fair, lobby your local federal member, the Treasurer, the Prime Minister. You could try the opposition equivalents, but I think you will find that whichever party is in power, this is now set in stone. Just like local GST - when Kevin 07 got in, guess what, we still had GST.

[k1ooo-slr-sales]

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@letscleanupmycupboards wrote:
When you buy secondhand goods privately here in Australia there is no gst payable. So why the heck do we have to pay it for secondhand goods privately purchased overseas. Just doesn't seem right.

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setting exceptions for eBay purchases from overseas sellers would encourage tax evasion/avoidance.

Think about it, an overseas seller lists an item as “New” and an Aussie buyer contacts them and asks them to change it “Used” so they don’t pay GST on the item. But, as they would still have to pay GST on shipping the Aussie buyer asks for the price to be adjusted upwards so as to show as “Free postage” and therefore pay no GST on shipping.

The argument in favour of second hand items being tax free when bought in Australia is that tax was paid when the item was purchased as new.  This argument would not hold for overseas items bought on eBay.

Exceptions encourage avoidance.  Avoidance costs Australia tax receipts.

I have posted this before, and no doubt I’ll post it again and again, when the GST was introduced in 2000 nobody could have anticipated the extent of online shopping in 2018, so adjustment/amendment of GST reach and legislation was inevitable. The fact that our overseas online purchases have been GST free for so many years is something we should be grateful for.

[digital*ghost]

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 wrote:

I have posted this before, and no doubt I’ll post it again and again, 

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Wanna borrow my wheel? It can be more fun that it looks. 

Spoiler

[countessalmirena]

Information on GST for low value imported goods, contained in eBay's updated User Agreement:

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.

In particular, the penultimate paragraph above should be helpful for eBay buyers wondering about how GST is managed with regard to refunds.