Incorrect new GST amount applied to invoice on overseas purchase

[6508.froggy]

I have made two purchases with the new imposed GST on overseas purchases. The first was correct at 10% on purchase price and postage. 

I have just gone to make payment on another purchase and the amount imposed on the invoice as import duites is 14.7% (NOT THE LEGISLATED 10%).

Have sent a message to eBay and await there response which could be like a circus when it appears no one in customer service seems to know about GST.

Be causious when making payment. 

[6508.froggy]

Payment shows full amount of shipping and Import duties going to Pitney Bowes.  Broken up as I was charged yet there invoice does not show the break up - So very suss as I have a bee in my bonnet and have been pursuing this since the 2nd July.  Will not let it go at this stage as it is totally unacceptable and we are being shafted. 

I still doubt that the GST portion is passed on to the Australian Government. My next port of call is to ring Pitney Bowes Australia for an explanarion. 

[brerrabbit585]

If PB handles more than $75K of items coming to Australia they have to be registered for the GST. I'm sure the ATO would be very well aware of how much PB sends here and would be checking that they're collecting the GST.

Have a read of this short ATO article:
https://www.ato.gov.au/business/international-tax-for-business/gst-on-imported-services-and-digital-...

The relevant bit is under Issuing Tax Invoices down towards the bottom. It says this: "You can issue a receipt detailing the GST component of the sale, but you are not obliged to do so under Australian taxation law." This applies if they choose the simplified GST system, and you can almost bet PB will have done that because it means people can't see how much extra they're charging for collecting it.

[lyndal1838]

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@brerrabbit585 wrote:

If PB handles more than $75K of items coming to Australia they have to be registered for the GST. I'm sure the ATO would be very well aware of how much PB sends here and would be checking that they're collecting the GST.

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The ATO could get the information from FedEx.....an Australian company who could be forced to declare how much business they are getting from Pitney Bowes.

[brerrabbit585]

It'd be easy enough for them to take note of parcels coming through customs with PB labels on them and record them all. I'm sure they'll have been doing this for quite a while anyway, otherwise how would they know which overseas companies they need to target in relation to registering for GST? They would only have needed to do it for a few weeks to get an idea of how much is coming from particular businesses.

[brerrabbit585]

I'm not wanting to hijack this thread, but would FedEx actually know the value of the parcels they deliver? Wouldn't they only know what PB have paid them to deliver the goods? Not that I really care! I'm sure the ATO has a few checks in place.

[lyndal1838]

GSP items are not cleared through Customs one at a time.

They are loaded into locked cages at the PB depot and delivered to FedEx in the cages where they are loaded into the aircraft without ever being handled individually.

There would be a Consignment Note for each parcel in the cage which would state the weight and value of the item along with a description.   This is what Pitney Bowes charges for....preparing the Con Note....they have to swear that the contents are as described.  The Con Notes are sent to Customs in advance of the arrival of the cage where they are cleared for import.   The cage is unloaded and delivered to the FedEx depot without the packages ever being touched individually.

[countessalmirena]

Yes... those Con Notes connote the value. (No connection in meaning!)

[brerrabbit585]

Ah, okay. I knew they sent a whole batch together but was forgetting that part, and wasn't aware of the rest.

[bigbrickshop]

We bought something yesterday from the US and it was shipped with the GSP.

The item cost 46.70 USD

GSP Shipping 18.27 USD

Import charges 10.15 USD

[kalabjim]

Hi,

I spent time with the ATO last week about how ebay is dealing with GST applied to businesses who import from overseas and on sell to a customer. They also advised  to re-contact ebay and that the inducement offered  if i paid the GST completing the  checkout was illegal. Ebay agreed  I could pay the seller direct with PayPal as long as I rang them back and advised the transaction had occured.

The solution ATO offered was for me to call the Consumer Affairs Dept (ACCC)1300-302-021 which I did. They suggested I open a case in the Fair Trading Office - State  of the country where the seller was . 

Unbelievable!