Why is Ebay charging GST on used items?

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!

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Why is Ebay charging GST on used items?


@*tippy*toes* wrote:

It's OK sweetie, the 5c GST you're paying on your 50c records can generally be found in the lounge, or even under car seats. Shove your hands under the back of the seats, you might be pleasantly surprised how much is in there! Usually more than enough to pay a few cents in GST.


LOL

 

Once I tried that and it felt like something bit me

 

 

Lucky for me it wasn't an 8 legged creature!

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Why is Ebay charging GST on used items?


@peterkm123 wrote:

I stopped buying from overseas because of the new GST on items below $1,000, but I just relented and bought an item for AU$227 from Europe and the GST was AU$33, figure that one out.

 

I agree with the suggestion that the GST should not apply if the overseas seller is just an ordinary Joe Blow selling a few items to clear his shed

 

So, all sellers on eBay should be classified for the purpose of applying the GST. Joe Blow sellers distinguished from small businesses and commercial sellers

 

Charging GST on absolutely everything from overseas is ludicrous, especially if a second hand item is unattainable in Australia. If the Government wants us to spend our money here, where is that item? it's not in Australia

 

Chances are the Government has figured out we won't guess that they're going for a windfall of GST before the pressure is applied for them to make it fairer


Yes peterkm123, I liken the GST application to second hand items as a one size doesn't fit all mentality.  Actually unfair but once elected into office, politicians don't worry about being caught out for telling lies because they know that it doesn't matter.

 

Yep, they'l scoop what they can while they can.

    

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Why is Ebay charging GST on used items?

4channel, it seems clear that the general tenor here is that the added GST component for imported goods with a value that's lower than $1000 is not welcome.

 

I doubt that any buyer likes it.

 

It's also clear that no one here likes the way that the legislation has made platforms like eBay the ones who collect that GST, since that effectively negates the whole "No GST for sellers whose annual turnover in Australian sales is lower than AUD 75,000". It doesn't seem fair. That is agreed.

 

The legislation has obviously been drafted in that way to force the largest possible compliance with that legislation. It would almost certainly not be possible to police thousands of small-ish overseas sellers and force them to register for GST collection. By adding the EDP (Electronic Distribution Platform) clause, it simplifies the whole thing; eBay and a few other similar sites can be easily identified as EDPs and told to comply. You'll remember that Amazon (its international sites) refused to comply, which is why Australians can't buy from Amazon.com for instance unless they specify a delivery address that isn't Australian.

 

The legislation's also been drafted in such a way as to avoid the possibility of Australians buying from international sellers but selecting an overseas forwarding address to avoid paying GST where it would otherwise be payable. If the GST isn't collected by the seller, or by the EDP, then the shipping forwarder must collect it.

 

You will say - and I agree - that as GST is excluded from being payable when we buy from sellers who are under that $75,000 turnover to Australian buyers, it shouldn't be collected when we do buy low-value imported goods from such sellers. TRUE. But because of the EDP caveat, that somewhat cancels out those exceptions, because - in spite of eBay, for instance, clearly stating that they are not the seller, the legislation effectively treats them as the supplier for the purposes of determining whether or not GST is payable AND for the purposes of collecting that GST.

 

Is that unfair? YES. I don't like it; you don't like it; no one here likes it. But it's the legislation. That legislation could have been drafted in any of several ways... the responsibility of collecting the GST could have been put upon Customs, but as you'd be aware (I'm sure), that may have ended up being so expensive to implement and run that the costs would have outweighed the collected GST. Not only that, but we'd have seen the process of importing goods become ridiculously clogged up, as bad as a permanent traffic jam with barely a trickle of movement.

 

So - rather than just let it go and keep the requirement for GST on imported goods payable only where the goods were $1000 or more - the legislators thought and thought, and came up with the current plan.

 

 

We can STILL comply with the legislation and AVOID paying GST on low value imported goods. It's just that we can't do that if we buy through an EDT (eBay, for example). (Or if "the customer is a business who provides you their Australian business number (ABN) and states that they are GST registered".)

 

So... if we buy rare car parts from overseas, or collectable items from overseas, or antiques from overseas, or DVDs or CDs from overseas, or cookware from overseas, or dinner services from overseas, or butter knives from overseas, or so on... we can still avoid paying GST without breaking the law. How? Make sure that you buy from an overseas seller directly, where the seller isn't registered for GST collection. Make sure, also, that the overseas seller sends directly to you, rather than shipping the item to a forwarding company.

 

If you buy from such an overseas seller directly, it becomes irrelevant whether the item you buy is new or second-hand. Either way, you won't be committing tax evasion.

 

 

 

If the legislation is rewritten in the future, who knows? Perhaps we'll see eBay not required to collect GST where the actual seller is under the $75,000 threshold for Australian buyers. But I very very very much doubt it. Similarly, irrespective of how much you'd like it to be true, there isn't an exception for second-hand goods (and never has been), so I don't think we will see such an exception written into the legislation. We can cry and scream about it being greed on the part of the government - and that might be true. Is there any government in the world that doesn't collect as much as it can in taxes? Of course some of that taxation is ploughed back into the services and assistance the government must provide for its citizens...

 

I'm not for one moment suggesting that some government expenditure is outrageous and unjustified. But I don't think that any of the political parties would - if in power - change the GST requirement to make low value imported goods GST-free again. I think we are stuck with it. I think that the only way to deal with it is to choose wisely when purchasing from overseas. That might mean buying a little less; it might mean finding sellers with their own websites or who are in selling groups on Facebook or whatever it may be. It's certainly never been easier for sellers to set up their own websites and collect international payments. Hobby group forums can provide a nexus.

 

But for goods where one needs a warranty, or where a safety standard is involved, I hope we - the Australian consumers - won't see a general collapse of small businesses in Australia to the point that our local choices are drastically compressed. That would be no good for our country.

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Why is Ebay charging GST on used items?

Wonderful post  with good points countessalmirena!  Sadly I can't reply to it properly as I have to move on.  You know one could say, "When they take it away from you, they'll never give it back, no matter how much you prove to them what they have done is wrong", and that may be true. But, we shouldn't give up hope. Laws are passed by politicians who are only as good as they are in resisting temptation or having real pride and core values of what a real decent man and woman should have. Sadly these types are in short supply and I doubt if Australia will never see the like of Gough Witlam or yes  ... ..  even Malcom Fraser again. But someone may oneday be real enough to have an interest in fairness.

But to censor ourselves and not speak freely about things that are unfair to us just because we think they can't be changed means we become robots.

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Why is Ebay charging GST on used items?

Most of us live in the real world and accept that the GST is here to stay and we have to accept it.

Besides, banging one's head against a brick wall hurts.

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Why is Ebay charging GST on used items?

                            ... and besides, lyndal, all of that mortar in one's hair!

 

There's the I'm-not-going-to-ever-stop-bashing-my-head-against-the-wall sort of person... Bashing one's head against the wall repeatedly

 

There's the One-bash-and-ouch sort of person... Bashing one's head against the wall one bash at a time - ouch

 

And there's the I-bash-my-head-against-the-wall-and-then-collapse-with-a-headache sort. Bashing one's head against the wall several times and then OUCH!

 

 

I used to get the most agonising migraines... I remember having a ghastly migraine that had already lasted three days; I was functioning on a zombie-like automatic setting, I think, in a class at uni at the time, literally hitting my head against the wall in an unreasoning and illogical attempt to thwack the pain away. I don't know if the pain I had a few days later was the lingering after-effect of the migraine, or if it was the after-effect of that wall-bashing.

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Why is Ebay charging GST on used items?

OK thanks for that, so the GST is on the postage as well as the item. It was my first overseas purchase since this inequitable tax came in on low cost items.

 

The time to complain about it can be anytime BTW, any time at all. Pressure can be applied by us all emailing the Govt 

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Why is Ebay charging GST on used items?


@4channel wrote:

@lyndal1838 wrote:

 


Nowhere did you say that you were talking about online sales.

 

You say only that there should be no GST on second hand items.....which is what I answered.

 

Why should there be different rules for new and second hand items?

 

What do you mean by "proper camera stores selling on line"?  There is not much that is not sold online these days so I am not sure what is so remarkable about cameras being among them.

 

As stawks says, you really don't understand the GST at all.....only that you don't like it as you think it limits your overseas buying.


I give up Lyndal. I can't be bothered. You win OK, Are you happy now ?*sigh*


I will believe that when you can go for a whole week without dredging up an old thread to rant about the GSP  or GST.

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Why is Ebay charging GST on used items?


@peterkm123 wrote:

OK thanks for that, so the GST is on the postage as well as the item. It was my first overseas purchase since this inequitable tax came in on low cost items.

 

The time to complain about it can be anytime BTW, any time at all. Pressure can be applied by us all emailing the Govt 


 

problem is that there probably isn’t enough support that would result in people taking the time to email the Government.

 

For starters, not everyone of voting age uses eBay . . . . . . and of those who use eBay some do not buy from overseas sellers . . . . . . . and some, like me, are only mildly impacted (a bit like being bitten by a bug, it is annoying but I will survive) . . . . . . . and then there are those who are disillusioned with the major parties (the only pollies who are capable of enabling real change to GST policy) . . . . . . and then there are diehards who only ever vote for one party regardless of policies (sometimes the party their mother/father/family voted for) . . . . . . and then there are those who support GST on low-cost imports.

 

But what the heck, email the Prime Minister and the Treasurer.  Don’t bother with the opposition as they don’t need to change policy to get elected, it is the coalition that are vulnerable.  But then again, these changes to GST were implemented by . . . . . . . THE COALITION.

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Why is Ebay charging GST on used items?


@peterkm123 wrote:

OK thanks for that, so the GST is on the postage as well as the item. It was my first overseas purchase since this inequitable tax came in on low cost items.

 

The time to complain about it can be anytime BTW, any time at all. Pressure can be applied by us all emailing the Govt 


Yes peterkm123, good point. Maybe someone with guts will listen oneday. We live in hope. 100% agree on " anytime"

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