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]

@jasbu-32,

I'm not sure how, but somehow you are drastically out of touch with Australian GST legislation.

$400 is not and was not the amount under which GST is/was not payable for imports into Australia.

❝From 1 July 2018, Australian Goods and Services Tax (GST) applies to the sale of low value goods (i.e. goods valued at AU $1,000 or less) imported by consumers into Australia.❞

Prior to 1st July 2018, GST was not payable on items imported into Australia by consumers when the value was $1000 or lower.

But since then, Australian legislation on GST has changed. It didn't happen overnight, after all; GST on low value imports was being mooted by Parliament and discussed in public and argued over and campaigned against for a long time. It's been in the media many times... and the fact that the legislation was to become effective on 1st July 2018 was widely announced.

To catch up on the details, can I suggest that you read through this thread?

[fc52rod]

The ATO does not expect GST to be charged on second hand goods. GST has already been charged on the item when new

[padi*0409]

Rubbish, of course it does. Ever bought secondhand books from a bookshop, s/h whitegoods from a shop, used car from a dealer etc etc etc ?????

[k1ooo-slr-sales]

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@fc52rod wrote:

The ATO does not expect GST to be charged on second hand goods. GST has already been charged on the item when new

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WOW . . . and here I am paying GST on second hand items from USA and they have already had GST on them when they were new.

Who'd have known?

[padi*0409]

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@k1ooo-slr-sales wrote:

Who'd have known?

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My 2 channel stereo system knew that.............

Spoiler

..........though the quad was in the dark..............

[tazzieterror]

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@padi*0409 wrote:

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My 2 channel stereo system knew that.............

Spoiler

..........though the quad was in the dark..............

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System overload requiring a hard reset - not unusual for the quads based on what I've observed.

[divermikem1]

"Why do so many people think that GST doesn't apply to used items?"

Because the GST has already been paid by the first buyer. I'm not a Tax Accountant but I think you should be able to claim a GST credit (1) for imported 2nd hand goods for personal use.

(1) The ATO explanation is APS verbose (think Sir Humphry) and refers to credits because they only make laws for BHP et al, so expect everybody to have a huge GST 'account' with them and need to balance, hence credit, the account. For the rest of us, who don't have a corporation with hundreds of accounting staff, it should be a refund at tax time. IE, we get it back the following tax refund. Unless you owe more than your due back, then it was just a credit. Gezz, thanks ATO!

[lyndal1838]

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@divermikem1 wrote:

"Why do so many people think that GST doesn't apply to used items?"

Because the GST has already been paid by the first buyer. I'm not a Tax Accountant but I think you should be able to claim a GST credit (1) for imported 2nd hand goods for personal use.

(1) The ATO explanation is APS verbose (think Sir Humphry) and refers to credits because they only make laws for BHP et al, so expect everybody to have a huge GST 'account' with them and need to balance, hence credit, the account. For the rest of us, who don't have a corporation with hundreds of accounting staff, it should be a refund at tax time. IE, we get it back the following tax refund. Unless you owe more than your due back, then it was just a credit. Gezz, thanks ATO!

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"I am not a Tax Accountant".....you have that right....in spades.

Please do not presume to give GST/Tax advice when you have no idea what you are talking about.

You can only claim a Tax Credit if you are registered for GST and have bought from another entity that is also GST registered.

If the item was bought for a business you may be able to caim the cost of the item as a tax deduction if it cannot be claimed as a GST credit....if you do nt have a Tax Invoice.

[4channel]

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Re: Why is Ebay charging GST on used items?@*tippy*toes* wrote:

in reply to ngupaan

on ‎11-27-2019 09:14 PM

I can't believe you have over 5,000 feedback and have never heard of the GSP. You must be the only eBayer who has never heard of them.

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Actually, I dealt with a seasoned seller last year who had been around for a long time. He had never heard of the Pitney Bowes GSP until I told him.

And yes, paying GST on an item in the US that's being sold by  an ordinary John S. or Susan J. who have just cleaned out their attic and put some things online is just plain not right.

[davewil1964]

Nothing to do with the GSP.

And why are you replying to an 8-month-old post? Couldn't you have posted this at the time. I can only imagine because it was as irrelevant then as it is now.