How can a seller charge shipping costs when no shipping is involved.

[*bmw_rider*]

I wanted to purchase a digital copy of a computer game from a supposedly American company selling on Ebay. The seller charges for the game in US currency plus charges almost double that cost in shipping.

Why is shipping being charged when I download the game on the Internet? There is no shipping and when I ask the seller about this he tells me it's Ebay who makes the shipping charge and he will reimburse me the shipping fees after I've made the payment.

Surely if he can reimburse me then it must be he who receives the money and not Ebay. Plus I wasn't aware that Ebay was involved in shipping matters.

Is this simply a scam to get more money, or Ebay actually making this charge?

Rathe than make another post I'll also ask this.  I recently made a small purchase on Ebay from a Chinese seller. The seller charged me GST and included it in the item price. I was given no invoice showing this GST charge nor his ABN. This means there is no official record of this GST payment.  How does the Australian Government get it's hands on this payment?  Surely if I'm purchasing something for use in business then I should be able yo show record of this taxation payment in returns to the ATO.

I have no problems with paying GST, but I refuse to pay it when it's not shown until I've commited to buying the item, or given proof of making such a payment. I'm thinking perhaps this Chinese seller is using this to put more money in his pocket. The fact he's selling the item for one cent and then adding a shipping fee to boost the total payment and sending the item via China's free post system makes it appear to be yet another way for sellers to make more on their sales. Can a seller make this charge without showing it in the listing?  Should Ebay be informed of these extra payments?

[countessalmirena]

Hello, *bmw_rider*,

I hope you're recovering from the spinal damage! (Ouch. Back from spinal injuries can be unbearable.)

As k1ooo-slr-sales has said, eBay is collecting the GST on all international purchases under $1000 made by Australians on eBay, and they will be forwarding this to the ATO. It would indeed be ludicrous to expect Chinese sellers to collect those funds on behalf of the ATO.

imastawka has also made an important point, about those downloadable games' provenance. Could you perhaps post the full title of one such listing? Perhaps that could help to provide a little more information, and we could work out what is actually going on, plus advance a more informed view about certain aspects of the listing.

[*bmw_rider* · Accepted solution]

Ubviously nobody knows how selling of games on-line works, so we mnay as well drop it altogether. It is 100% legitimate I've been buying games on line for many years,  I live in a small rura; town and the number of games available are either too old or too expensive. Downloading them has been my only option apart from buying the hard copy of course. Downloading is for me, the best option and as I said it's 100% legitimate.  It's the charging on shipping which is ludicrous.  I was hoping somebody would know something about it, but it seems I was wrong.

Actually, I'll leave it all here.  I don't like being screamed at for no reason, so to avoid it happening again, I'll say goodbye and save everyone from getting it all wrong. I will, unsubscribe. Thank you for your input. Bye.

[k1ooo-slr-sales]

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@*bmw_rider* wrote:

OK, OK, no need to scream it at me. You're wrong of course, the seller has told me he gets the extra 10%, completely legally according to him.  That is what I originally complained about.  If it was Ebay collecting the GST then I have no problem with it apart from the fact I have no invoice to present to my accountant next year.  Or does Ebay itemize each payment and furnish me with a legitimate invoice every year?   Why hasn't Ebay informed it's members of this and explained how it's expected to work?

I also have to wonder about the other items i've ordered after this one I was charged GST on. They were via Ebay and there was no GST involved, bith from China and within Australia.

Honestly this does sound like a typical Aussie lash up from our Government.  I wonder how long it's going to take until they realise what a mess they've made of it and how much it's costing them to recoup it. I guess it's Hardly Normal we can thank for this. He's been pressuring the government for years to start charging this.  All because his department stores weren't dragging in what he expected at Christmas time. Obviously the millions he's making isn't enough compared to what the Chinese On-Line stores are making. 

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I wasn’t screaming at you, just making sure you read that part of my post as it appeared that you have missed it the first time!

Spoiler

using CAPS IS HOW MEMBERS SCREAM AT OTHERS. I did not use CAPS.

If the Chinese seller is adding 10% and claiming that they are collecting GST then I suggest you report them to eBay immediately.  eBay are the ones that collect the GST and it will appear on your PayPal accountas a payment to eBay for GST.  Any eBay seller who adds 10% and claims it is because of the GST is lying.

The thread I provided a link to deals with the invoice issue you raise.  Read that thread, and follow the links provided by brer.

I would be printing off PayPal payment advices for accounting purposes.  You can also go into your PayPal account and print off the details of payments made to PayPal for GST.

The benefit of eBay collecting the GST is that you have a paper trail through PayPal.

Spoiler

Gerry Harvey is an easy target of member rage about the GST on low-cost imports.  I don’t agree.  When the GST was introduced there was little, if any, online buying from overseas.  The introduction of GST on low-cost imports was always going to happen once online buying became mainstream.

It probably should have been introduced years ago, so we have had it too good being able to purchase tax-free for those years.

[k1ooo-slr-sales]

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@*bmw_rider* wrote:

Actually, I'll leave it all here.  I don't like being screamed at for no reason, so to avoid it happening again, I'll say goodbye and save everyone from getting it all wrong. I will, unsubscribe. Thank you for your input. Bye.

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as far as info about the GST on low-cost imports goes you have received correct information on the implementation of GST since 1st July and the methods to be used.

As soon as you posted that the Chinese seller was telling you they were collecting GST you were advised to report them to eBay.

The link you were provided will explain the GST implementation, as well as providing links to ATO websites that further provide correct information.

Spoiler

I haven’t commented on the games aspect of your post as I don’t know about these.

Spoiler

and you were not screamed at.

[digital*ghost]

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@*bmw_rider* wrote:

I wanted to purchase a digital copy of a computer game from a supposedly American company selling on Ebay. The seller charges for the game in US currency plus charges almost double that cost in shipping.

Why is shipping being charged when I download the game on the Internet? There is no shipping and when I ask the seller about this he tells me it's Ebay who makes the shipping charge and he will reimburse me the shipping fees after I've made the payment.

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Can you provide the item number for the listing? Digital files are fine on eBay.com, but if the seller is saying eBay adds the shipping fee, then I suspect kopes is right and the item has been automatically opted in to the GSP, which is faciliated by Pitney Bowes, not eBay (and if that's the case, the seller doesn't receive the shipping funds, nor can they refund it). 

Maybe they've listed it in the wrong category? 

That's if you come back, anyway - you have to remember that the members here can only work with the information you provide, meaning we often have to fill in the gaps with information we already have. What seems perfectly clear to you is generally because you have the full breadth of information since it's your experience, but everyone else has questions / needs more info to get a proper understanding of what's going on, and can only reply / advise / make suggestions in that capacity. 

What does your PayPal receipt say for the payment to the Chinese seller? The one purchase I've made since GST was implemented showed a breakdown of the two payments (item cost, then GST cost). If the tax was added on eBay at the cart / checkout stage, it doesn't actually sound like the seller added it, because quite simply they can't at that point. Sellers can issue new invoices, but they can't add surcharges that aren't visible until checkout, but that is how eBay have implemented the GST charges. 

[padi*0409]

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@*bmw_rider* wrote:

I recall a number of years ago there was a question as to sellers selling low to get sales, but boosting their shipping costs to compensate.  I assume Ebay finally banned that opportunity because up until now I haven't seen it happening.

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eBay effectively knocked that one on the head when they brought in the fees on shipping/postage.....................a few years ago.

[gutterpunkz05]

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@*bmw_rider* wrote:

OK, OK, no need to scream it at me. You're wrong of course, the seller has told me he gets the extra 10%, completely legally according to him.  That is what I originally complained about.  If it was Ebay collecting the GST then I have no problem with it apart from the fact I have no invoice to present to my accountant next year.  Or does Ebay itemize each payment and furnish me with a legitimate invoice every year?   Why hasn't Ebay informed it's members of this and explained how it's expected to work?

I also have to wonder about the other items i've ordered after this one I was charged GST on. They were via Ebay and there was no GST involved, bith from China and within Australia.

Honestly this does sound like a typical Aussie lash up from our Government.  I wonder how long it's going to take until they realise what a mess they've made of it and how much it's costing them to recoup it. I guess it's Hardly Normal we can thank for this. He's been pressuring the government for years to start charging this.  All because his department stores weren't dragging in what he expected at Christmas time. Obviously the millions he's making isn't enough compared to what the Chinese On-Line stores are making. 

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Someone needs to yell at you.  It is quite simple the GST is not collected by the little man in China.  It is collected and remitted to the ATO by Ebay.   The little man in China never gets his hands on your extra 10% payment.

[padi*0409]

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@gutterpunkz05 wrote:

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@*bmw_rider*

Someone needs to yell at you.  It is quite simple the GST is not collected by the little man in China.  It is collected and remitted to the ATO by Ebay.   The little man in China never gets his hands on your extra 10% payment.

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When someone marks their own post as a solution despite being shown they're wrong, I suspect their deafness to other more experienced members is overwhelming.

[gutterpunkz05]

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@padi*0409 wrote:

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@gutterpunkz05 wrote:

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@*bmw_rider*

Someone needs to yell at you.  It is quite simple the GST is not collected by the little man in China.  It is collected and remitted to the ATO by Ebay.   The little man in China never gets his hands on your extra 10% payment.

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When someone marks their own post as a solution despite being shown they're wrong, I suspect their deafness to other more experienced members is overwhelming.

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I see in post 7, OP is Flat on his back, so there might be a blood flow restriction to take into account.

[salavalli-0]

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