Why is ebay charging GST on postage cost from overseas?

I have just been charged 10% for GST on items AND postage from Germany. As far as I understood the GST was to be only on items purchased. This will cut down my overseas purchases greatly.

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Re: Why is ebay charging GST on postage cost from overseas?

Exactly as the name says

 

Goods and services tax

 

The item is the goods

 

Postage is the service

 

It's not just a goods tax or a one or the other tax

 

 

There are several threads on here asking the same thing, feel free to have a look but the answers are all along the same wording

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Re: Why is ebay charging GST on postage cost from overseas?

Yes, but logically I think that if international postage is not subject to GST for items leaving Australia (sent overseas), it should be the same for items entering Australia.

It is odd, and Australia Post also says so:

One oddity of the system is that G.S.T. (Goods and Services Tax) applies to domestic postage, but not to international postage.

 

That's why stamps are different for sending letters overseas, and if you use domestic stamps you have to add 10% value.

 

The ATO for example also says:

When you purchase goods online the price usually includes the costs to deliver the goods to you. Unlike international transport, domestic freight costs are usually subject to GST. It makes no difference if the supplier delivers the goods personally or via Australia Post or freight forwarder - essentially the item(s) you are purchasing are โ€˜delivered goodsโ€™.

From this page: https://community.ato.gov.au/t5/General-tax-questions/Online-Business-applying-GST-on-postage/td-p/1...

 

Or is there a new rule?

 

 

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Re: Why is ebay charging GST on postage cost from overseas?


@papermoon.lady wrote:

Yes, but logically I think that if international postage is not subject to GST for items leaving Australia (sent overseas), it should be the same for items entering Australia.

It is odd, and Australia Post also says so:

One oddity of the system is that G.S.T. (Goods and Services Tax) applies to domestic postage, but not to international postage.

 

That's why stamps are different for sending letters overseas, and if you use domestic stamps you have to add 10% value.

 

The ATO for example also says:

When you purchase goods online the price usually includes the costs to deliver the goods to you. Unlike international transport, domestic freight costs are usually subject to GST. It makes no difference if the supplier delivers the goods personally or via Australia Post or freight forwarder - essentially the item(s) you are purchasing are โ€˜delivered goodsโ€™.

From this page: https://community.ato.gov.au/t5/General-tax-questions/Online-Business-applying-GST-on-postage/td-p/1...

 

Or is there a new rule?

 

 


Charging overseas buyers gst for postage isn't logical at all because they pay taxes to their own govt, not ours.  Exports aren't taxed by the Australian govt, only imports.

 

Anything coming into Australia is taxed because it's Aussie citizens being taxed by the Australian govt.  If Australians sell on certain platforms to European buyers, those platforms collect VAT on behalf of the govts of those buyers, but the Aust govt doesn't get any tax from them.

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Re: Why is ebay charging GST on postage cost from overseas?

OK, I understand that. I also had a quick look at this page, and yes, I know I should read it all before saying anything (I can't right now as I have to finish something else by tonight), but I noticed this sentence:

The international transport of goods (including the arranging of such services) is GST-free from a place outside Australia to the place of consignment in Australia for a supplier of that transport into Australia.

 

 

 

 

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Re: Why is ebay charging GST on postage cost from overseas?

Also, I haven't bought anything yet from any company, but I got some emails from companies I had bought from in the past and they all mention GST on the "items"?

I am curious to see how it works when or if I actually buy something.

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Re: Why is ebay charging GST on postage cost from overseas?


@papermoon.lady wrote:

OK, I understand that. I also had a quick look at this page, and yes, I know I should read it all before saying anything (I can't right now as I have to finish something else by tonight), but I noticed this sentence:

The international transport of goods (including the arranging of such services) is GST-free from a place outside Australia to the place of consignment in Australia for a supplier of that transport into Australia.

 

 

 

 


Oh, it does not apply to postal goods.

 

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Re: Why is ebay charging GST on postage cost from overseas?

On imports with a value over $1,000 GST has always been payment on the landed cost of the goods in Australia, viz. cost of goods plus C.I.F. (Cartage, Insurance & Freight)

They are now applying the same formula to sub $1,000 imports

Message 8 of 12
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Re: Why is ebay charging GST on postage cost from overseas?

Strangely, I have never bought anything over $1,000 from overseas, so I have no experience, but yes, it is the same concept.

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Re: Why is ebay charging GST on postage cost from overseas?

The Australian government ripping its citizens off once again, no suprise there
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