How is eBay legally allowed to NOT display price inclusive of GST?

[galla2016]

Prices on Australian websites are supposed to show prices inclusive of GST, aren't they?

I just bought something from the UK and GST was added *after* I confirmed the purchase, with no indication from ebay that this would happen, nothing on the item page to say the item was subject to GST. I'm not complaining that I have to pay the GST, I'm saying ebay needs to show the FINAL cost on the item page, or at least say that GST will be added.

[enigmabear]

It is showing on the ad when I open it, the screenshot is from the ad itself

And while I agree it is far from the best set up, it is still shown on the listing page and in the ad

[springyzone]

You are right, it is definitely on the listing page and when you open the ad, if you specifically go to the section that says postage & payments, then click on it, it does say GST may apply.

I know I am being picky, but to me, that seems a far cry from the listing where the words 'GST of 10% will apply' are immediately below the price. It can't be missed in the listings whereas when you open the ad, it isn't obvious at all.

To me, the simpler an ad is for customers, the better. So many people might very well miss anything where they have to click onto another section. I realise people should know there is a GST added to overseas purchases, and galla is okay with that, from what I can make out, but I guess what puzzles me is why ebay can do it on the listings so clearly but not in the ad.

I don't have a lot of computer skills so maybe there is a technical reason it can't go next to the price but here's where I would put it if at all possible, just to make life easier for customers.

[brerrabbit585]

You say the simpler the ad is the better, but there's so much information already displayed in the area where the price is that anyone not already aware that GST is payable on overseas purchases could still easily miss it, in the same way that a lot miss the fact that items will be sent through the GSP.

Logically speaking, the GST has to do with payments so it's on the postage/payments tab.  If you buy something from an overseas website, eg. an English one that charges VAT to English customers, you have to go hunting for the information relating to whether or not their prices displayed include VAT and whether or not it'll be subtracted at checkout if someone from overseas buys from them.  It's not displayed on every single item. 

If those websites now charge GST to Australian customers at checkout, I wouldn't expect to find that information displayed on each item either.  It'd be in the section relating to shipping and other charges.  Why should ebay be any different?

It's up to people to check for themselves and to know the laws of their own country.  Ebay are fulfilling their obligations and it's not their job to educate people on Australia's tax laws by cluttering up listings with extra information.  The information is there in the relevant place - it's just unfortunate that we've all become so complacent that we rarely click on the postage tab, or even bother reading all of the description a lot of the time.

[springyzone]

I think ebay ads could do with a total clean up actually.

Putting 10% GST will apply immediately under the price, would, I think, be very visible & it is exactly where it is in the listings so I am not sure why it could not be like that in the ad. 

The postage section actually says GST may apply, which to me has a slightly different meaning to '10% GST will apply.

I'm basically a buyer these days. The main info i look for is price/postage cost/item location.

The estimated delivery dates could be under that.

But price/postage/location are your at a glance things.

The seller's name/rating & location can be off to the side.

I suppose ebay will do whatever it wants to do though.

Just generally though (and not talking ebay here) I find any website at all where I have to jump through hoops to find out the total price eg where I have to pretend to be buying & go right to the end (ie as in fill in name/address etc on various pages), before I can see what postage cost is or what total price is, intensely annoying. Ebay doesn't annoy me as I can usually see the total price right there in front of me. I am not sure if other people are like me or not but I guess there must be a few around.

[digital*ghost]

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@springyzone wrote:

The postage section actually says GST may apply, which to me has a slightly different meaning to '10% GST will apply.

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'May' is correct, though, for the reason I outlined above - GST might, or might not, apply, depending on the order total, and shipping address used. 

[brerrabbit585]

I don't know what all the fuss is about, frankly. If someone doesn't know about the new laws they'll only make one purchase from overseas before they find out. If the GST is a deal-breaker they can easily back out of the transaction before they pay. If they bought using BIN and immediate payment wasn't required, one unpaid item isn't going to affect their ability to buy from other sellers.

[springyzone]

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@digital*ghost wrote:

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@springyzone wrote:

The postage section actually says GST may apply, which to me has a slightly different meaning to '10% GST will apply.

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'May' is correct, though, for the reason I outlined above - GST might, or might not, apply, depending on the order total, and shipping address used. 

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It will sound like I am being argumentative but I don't mean it that way at all, just curious.

You may well be correct but in that case, why does it have '10% GST will apply' in the listing?

I've been assuming it is a computer program that picks up that the item is currently displaying on ebay Australia but the item itself is located from outside Australia. I was under the impression that GST was no longer dependent on the order total, it was being applied to even small purchases from overseas.

Just to clarify, it doesn't personally worry me overly much where the info about the GST goes. It's not that often I buy from overseas & I'm well aware of the GST etc, but just thought the clearer the total price is to customers, the better. No nasty surprises.

[brerrabbit585]

Yes, GST is applied to small purchases, but it shouldn't be charged if your total order is over $1,000. In that case it's still charged when it comes through customs, not when you pay for it on ebay.

May and will are open to interpretation. You could argue that "GST will apply" could mean it will apply under certain conditions. The fact is it's not ebay's job to warn customers of a change in the law regarding GST and purchasing from overseas, it's their job to collect it. Their obligation to the ATO ends there.

I really don't think ebay should feel obliged to educate buyers when the new law was in the news for over a year before it happened and again after it happened.

It's always been a buyer's responsibility to know the laws regarding customs and taxes in their own country. Nothing has changed in that regard. If people want to live under a mushroom and never listen to the news they can't blame anyone else if they don't know about the tax.

Many states in the US charge sales tax to buyers from the same state but I doubt this is displayed next to the price (or as part of the price). Why should the listing be cluttered up just because a small minority choose to live in ignorance?

[digital*ghost]

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 wrote:

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It will sound like I am being argumentative but I don't mean it that way at all, just curious.

You may well be correct but in that case, why does it have '10% GST will apply' in the listing?

I've been assuming it is a computer program that picks up that the item is currently displaying on ebay Australia but the item itself is located from outside Australia. I was under the impression that GST was no longer dependent on the order total, it was being applied to even small purchases from overseas.

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It has 'may' in the listing, and 'will' in search results - at a guess only, it could be because in search results, it shows you the price and postage for a single item, posted to the location the buyer currently has in their primary shipping address, and based on those factors eBay can more confidently assume "will" is appropriate on those conditions.

If someone is checking the postage & payments tab, often it's to confirm postage rates for multiple items, and / or to a different location, and 'may' is more appropriate. 

[galla2016]

I want to point out I'm referring to the legal obligation to state the final price (inclusive of GST) at the point of purchase, before the purchase is made. That's *always* been the law, since GST was introduced. Not "10% GST may/will be added" but the actual final price.

From the ACCC website accc.gov.au/business/pricing-surcharging/displaying-prices

"When you present prices to your customers, you must state the total price of the good or service as a single figure ... This should include any tax ... e.g. GST."

and

"If you promote a price that is only part of the total price, the total price must also be displayed at least as prominently as the part price." (emphasis mine)

Ebay's search results do mention GST (although ambiguously) but not everyone finds items by searching for them in that way. Some people follow a direct link; some people browse a specific store.The listing page itself needs to have the final price (in this case, GST is not mentioned anywhere on the page - you have to click the "postage & payments" tab - and why would you, when postage is free?).

Checkouts and invoices on other sites say something like:

Cost $49.50

Of which $4.50 is GST

Total cost $49.50

or:

Cost excl. GST $45

GST $4.50

Total cost $49.50 (but $49.50 is still listed as the purchase price on the item's page)

In my case, I could only see the final price *after confirming* the purchase ie. entering into the contract.

Most importantly, I'll let you know if the water bear is as cute as it looks.