Why do I have to pay GST on the postage as well as the item I am buying?

[milosnan]

I know we have to pay GST on overseas purchases, but do we also have to pay GST on the postage.  This seems ridiculous.  Anyone have an opinion on this?  Please advise.

[enigmabear · Accepted solution]

The item is the goods

The postage is the service

Due to GST being goods and services tax, it is charged on the goods and on the service

Not saying I think it's right/fair/etc etc etc just saying why it is so 

[brerrabbit585]

The ATO has an opinion on it and they're the ones who make the rules. GST has always been payable on the postage component of items/consignments over $1K and now it's payable on items under $1K.

[davewil1964]

For the last 18 years, GST has been payable on ALL postage within Australia.

It's just that buyers didn't consciously realise it, because it wasn't an add-on.

[brerrabbit585]

You're right, of course, but I should have said items bought from overseas.

[4channel]

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@milosnan wrote:

I know we have to pay GST on overseas purchases, but do we also have to pay GST on the postage.  This seems ridiculous.  Anyone have an opinion on this?  Please advise.

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Well, since the postage is paid for in the US by a seller sending the item then Australian buyers shouldn't be paying GST on that. Anyway, I'm not replying because of that. I think it's wrong when an ordinary Australian buyer buys an item off an ordinary American or English seller who is seling something that used to belong to them and then get hit with GST for that item.

That is protection racketeering and a low down scam.

[padi*0409]

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@4channel wrote:

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@milosnanI think it's wrong when an ordinary Australian buyer buys an item off an ordinary American or English seller who is seling something that used to belong to them and then get hit with GST for that item.

That is protection racketeering and a low down scam.

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If the buyer was buying direct from the "ordinary American or English seller", then they wouldn't be paying GST for the item (So long as it was under $1,000 and the seller sold less than $75,000 worth of items to Australia)

BUT they are buying through eBay, and the ATO has directed eBay to collect the GST from all items imported under $1,000.

NOT A SCAM, it's simply the way the GST works............................. 

[countessalmirena]

There is a huge amount of confusion about this GST. I have a particular anecdote that I can only refer to in veiled terms, concerning a particular purchase where the GST should not have been payable. Misinterpretation by a particular overseas company couldn't be changed by quoting relevant legislation, and a solution was found via certain means; it's not a solution the details of which I will share.

There. I hope that clears up everything.

[padi*0409]

Countess, you're going to drive me to drink...................

Spoiler

Hallelujah........................

[viewmont1071]

https://www.youtube.com/watch?v=a11EGkZFcXk