Why is Ebay charging GST on used items?

[netscrounger]

The Australian government imposed GST charges on online sales to protect "Brick and mortar" businesses, I get that, but why an I expected to pay an extra $30 on a set of obsolete used motorcycle carbs that I'm buying from a private seller in the US? What a scam! Cancel my bid thanks!

[countessalmirena]

davewil, I am assuming that in your case, FedEx was the deliverer rather than the re-deliverer...?

[davewil1964]

Indeed

[bon8008]

Yes tax has already been collected on those items

[michelle009]

GST should not be charged when a second hand item is being sold by an individual.  Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people.

[k1ooo-slr-sales]

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@michelle009 wrote:

GST should not be charged when a second hand item is being sold by an individual.  Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people.

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you do realise that Aussie individuals who sell on eBay and are not registered to collect GST do not have GST applied to items they sell whether they are new or used?

Your 50% calculation is flawed.  I will explain in plain English.

The recent change in GST legislation makes eBay responsible for collecting GST on low-cost items bought from overseas sellers as the EDP (Electronic Delivery Platform).  These items, being overseas, have not ever had Australian GST applied to them unless they were originally bought in Australia from an Australian business before ending up overseas.  When these items are bought and imported into Australia they are subject to GST.  If they are later sold by the Aussie buyer, as an individual not registered to collect GST, then NO GST is applied.  So the GST % is just 10% unless the item is later sold by a person registered for GST.

Second hand items bought on eBay from Aussie individuals (not businesses) continue to be free of GST.

This thread will help members understand this:

https://community.ebay.com.au/t5/Buying/GST-when-buying-overseas-a-few-FACTS/m-p/2171248#M92475

[k1ooo-slr-sales]

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@michelle009 wrote:

GST should not be charged when a second hand item is being sold by an individual.  Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people.

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the other way of looking at your figure of 50% is to look at what the total GST would be on sales price IF GST was applied to used items on-sold 4 times.

I will use an imported items cost of A$100 with free postage on each sale for easy figures

1st sold = $100 + 10% GST = $110

2nd sale, 1st buyer increases price as they got a bargain = $200 + 10% GST = $220

3rd sale, item is now well used and not worth what 2nd buyer paid = $150 + 10% GST = $165

4th sale, 3rd buyer refurbishes item = $200 + 10% GST = $220

5th sale, 4th buyer no longer needs item and prices it for quick sale = $100 + 10% GST = $110

Total sales prices = $750

Total GST that has been paid = $75

SO, even if GST was payable on the item on 5 sales the total GST collected would remain 10% of the exc. GST item price

Of course, using my easy figures, an argument could be put that 75% GST was collected on the $100 item . . . . . . but that is only if you consider the GST collected on 5 times sold as a % of the price paid by the first buyer . . . . . which is why your assertion is flawed.

Even if GST was payable on all second hand items, if it is applied as 10% of item price each time, the total GST collected regardless of the number of times an item is sold will remain as 10% of the total sale prices.

If you have mathematical modelling that disproves my calculations and proves that GST would be 50% I would be happy to see it.

[4channel]

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@michelle009 wrote:

GST should not be charged when a second hand item is being sold by an individual.  Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people.

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I agree with you Michelle. Many overseas sellers that I have purchased from overseas are just ordinary folk,  selling their unwanted stuff and stuff they wwnt to get a few bucks for. To be charged GST on that is wrong. We are paying more now and will be spending less.  Most of what I like to buy is not available here in Austrralia. 

I could start a whole new topic on why GST on a whole is am unjust tax but that's for another time.

Quote " Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people."

Well Michelle, you're a switched on person and like you, I see the wrong in it all. Well,  it's tragic that Politicians are privatisation-mad, get huge salaries and amazingly fat pensions after they leave politics, often in disgrace. Oh and let's not forget those banking executives that get $$$$ 50 MILLION DOLLAR golden handshakes.$$$$  Who allowed this to happen??

[k1ooo-slr-sales]

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@4channel wrote:

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@michelle009 wrote:

GST should not be charged when a second hand item is being sold by an individual.  Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people.

---

I agree with you Michelle. Many overseas sellers that I have purchased from overseas are just ordinary folk,  selling their unwanted stuff and stuff they wwnt to get a few bucks for. To be charged GST on that is wrong. We are paying more now and will be spending less.  Most of what I like to buy is not available here in Austrralia. 

I could start a whole new topic on why GST on a whole is am unjust tax but that's for another time.

Quote " Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people."

Well Michelle, you're a switched on person and like you, I see the wrong in it all. Well,  it's tragic that Politicians are privatisation-mad, get huge salaries and amazingly fat pensions after they leave politics, often in disgrace. Oh and let's not forget those banking executives that get $$$$ 50 MILLION DOLLAR golden handshakes.$$$$  Who allowed this to happen??

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what is it with continually posting about 50 MILLION DOLLAR golden handshakes to banking execs? (in bold coloured text to draw attention)

Last time I checked these payments were not made by the Government, therefore GST and other incoming revenues DO NOT contribute to banking execs golden handshakes.

I invite you to start a thread about why the GST on the whole is an unjust tax if it would give you just one place to post about why it is unjust and stop you posting on so many threads about it being unjust.

Again, what have banking exec payments got to do with GST?

I get that you are anti Howard/Coalition governments past, but when you keep posting about 50 million dollar handshakes it gives me the impression you have lost your way in your arguments against GST and are just clutching at straws with posting false information . . . . . . . FAKE NEWS, so to speak.

[imastawka]

I invite you to start a thread about why the GST on the whole is an unjust tax if it would give you just one place to post about why it is unjust and stop you posting on so many threads about it being unjust.

Hear hear

Spoiler

 

[4channel]

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@k1ooo-slr-sales wrote:

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@4channel wrote:

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@michelle009 wrote:

GST should not be charged when a second hand item is being sold by an individual.  Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people.

---

I agree with you Michelle. Many overseas sellers that I have purchased from overseas are just ordinary folk,  selling their unwanted stuff and stuff they wwnt to get a few bucks for. To be charged GST on that is wrong. We are paying more now and will be spending less.  Most of what I like to buy is not available here in Austrralia. 

I could start a whole new topic on why GST on a whole is am unjust tax but that's for another time.

Quote " Otherwise the Government is just double dipping to get another 10% on that item.  Sell the same item five times and 50% GST, seriously ripping off the people."

Well Michelle, you're a switched on person and like you, I see the wrong in it all. Well,  it's tragic that Politicians are privatisation-mad, get huge salaries and amazingly fat pensions after they leave politics, often in disgrace. Oh and let's not forget those banking executives that get $$$$ 50 MILLION DOLLAR golden handshakes.$$$$  Who allowed this to happen??

---

what is it with continually posting about 50 MILLION DOLLAR golden handshakes to banking execs? (in bold coloured text to draw attention)

Last time I checked these payments were not made by the Government, therefore GST and other incoming revenues DO NOT contribute to banking execs golden handshakes.

I invite you to start a thread about why the GST on the whole is an unjust tax if it would give you just one place to post about why it is unjust and stop you posting on so many threads about it being unjust.

Again, what have banking exec payments got to do with GST?

I get that you are anti Howard/Coalition governments past, but when you keep posting about 50 million dollar handshakes it gives me the impression you have lost your way in your arguments against GST and are just clutching at straws with posting false information . . . . . . . FAKE NEWS, so to speak.

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Hey k100-slr-sales, I was just replying to Michelle, re her valid point. I also added what I did as many GST proponents seem to have no issue with the rots that are going on but believe that people who question it's validity are somehow anti the economy etc