Returns and GST

[jacky5819]

I am a buyer who has already had to pay GST on goods bought from overseas. Yep, annoying but that's the law. My issue is, what happens if I do not receive an item or I need to return it. Will the GST amount be returned to me by ebay? Will this happen automatically?

Cheers!

[davewil1964]

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@jacky5819 wrote:
Hi Lyndal. I am not looking at obstacles at all. I am not complaining about the implementation of the GST. The law is the law. I understand that the GST is to be paid on refunds.

If an overseas seller makes a refund, they will only refund the cost less GST.

Will Ebay pick up that GST needs to be refunded also or, as a buyer, will I need to contact Ebay for refund.

Simple question. It is about procedure.

Cheers

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It certainly seems like you are anticipating trouble. How many returns do you usually 'need' to make to foreign sellers?

[jacky5819]

Hi Lyndal, as per my first comment, I am a buyer only, and I have had occasion in the past to return items and to be refunded for other reasons. I am not sure if you have ever purchased anything from overseas, but I do regularly.

I have even had partial refunds. That opens up another can of worms.

All I want to know is the procedure for claiming back the GST when this occurs.

Perhaps there is someone reading these messages, who has bought an item over $1000 and has had to return it in the past, and get a GST refund. I am sure the procedure will be the same.

Do I expect 'trouble' as you call it? No, but all new systems take a little ironing out and there may be issues. I personally prefer to have a basic knowledge of what to do in advance.

Cheers

[lyndal1838]

I am a buyer only and I have bought some 15000 items, about half of them from overseas.

I have also bought items over the threshold when it was only $400 although I have never had to return them.

Why do you think there will be any difference between refunds from Australian stores and overseas sellers?

Refunds will still work in th same way......you will get the refund in full through paypal who will take part from the seller and part from th ebay GST account.  The buyer will not have to do anything, just as the buyer does not do anything to receive a refund through an Australian based store.

[jacky5819]

Hi Lyndal

You are very lucky to have not had to deal with returns.

I am only referring to refunds from overseas sellers. I do not pay GST for items bought in Australia. Why would you even bring that question up?

I am talking about refunds from overseas sellers and GST refunds.

Thank you for your replies

Cheers.

[lyndal1838]

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@jacky5819

 wrote:
Hi Lyndal

You are very lucky to have not had to deal with returns.
I am not sure that it is luck.....I buy carefully and make sure that I really want the items. 

I am only referring to refunds from overseas sellers. I do not pay GST for items bought in Australia. Why would you even bring that question up?

Of course you pay GST on items bought in Australia if the sellers are registered for GST....and several of the sellers you have bought from are definitely registered.

And you pay GST every time you go to the supermarket for example.

I am talking about refunds from overseas sellers and GST refunds.

The refunds on ebay will work exactly the same as any refund from any Australian store that is GST registered.  You will get your refund including the GST paid.

The only possible problem I can see is with items shipped through the GSP....it is hard enough to get refunds through the without the GST being involved.

Thank you for your replies

Cheers.

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[jacky5819]

Hi yet again Lyndal

I apologise, yes I do pay GST in Australia, I worded my reply incorrectly. I am not a business so do not request any GST refunds at any time. As far as I am concerned, GST paid in Australia is irrelevant to my original question on this board.

I am only concerned with refunds of GST where refunds are made on items purchased overseas.

Cheers

[lyndal1838]

It should work exactly the same way......you return the item....you get a refund, including the GST.

At no point in the refund process does the buyer need to do anything about requesting the refund of the GST paid except perhaps when you are involved in commercial quantites such as the refund for a whole shipment of goods.

[k1ooo-slr-sales]

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@jacky5819 wrote:
I am only concerned with refunds of GST where refunds are made on items purchased overseas.

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and that has been answered several times already.

[lyndal1838]

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@jacky5819 wrote:
Hi yet again Lyndal

I apologise, yes I do pay GST in Australia, I worded my reply incorrectly. I am not a business so do not request any GST refunds at any time. As far as I am concerned, GST paid in Australia is irrelevant to my original question on this board.

I am only concerned with refunds of GST where refunds are made on items purchased overseas.

Cheers

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I have just reread this post in the cold hard light of day and have realised that you have no idea of how the GST works.

Small businesses do not apply for refunds of the GST.   If they get a refund from another business the GST is adjusted in the next remittance of GST to the ATO.  Once the ATO gets the GST in it's hot little hands it keeps it....but it just does not get as much in the next remittance.

How this works for big business I do not know but it certainly has no bearing on the current discussion.

[jacky5819 · Accepted solution]

Hahahaha Lyndal. Oh my, you do see yourself as an expert. You have managed to turn my simple question into something so complicated. You still do not understabd it it not about GST per se in Australia. It is about dual refunds from overseas.

I have been in conversation with paypal and they have been extremely helpful. They will be handling the refunds as such and yep, there are issues. I have the knowledge I need to go forward now.

Thank you Countessalmirena. You advice was very useful. I should have stopped replying after that. LOL

Cheers