Why isn't the GST included in the bidding price?

dachrma
Community Member

Quote from ACCC: "When you present prices to your customers, you must state the total price of the good or service as a single figure, which is the minimum total cost that is able to be calculated. This should include any tax, duty, fee, levy or other additional charges (e.g. GST or airport tax)."

 

I'm assuming the purchase agreement is made when clicking [Buy It Now]. This bidding price should include GST (or maybe at least state something like "price excludes GST") so that when comparing this price to another Australian price it is a fair comparison. I can't back out of the purchase after i've agreed to buy, so increasing the price at checkout seems to breach the pricing rules.

 

(note: I have no issues with being charged GST, I just want it to be transparent and consistent)

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Re: Why isn't the GST included in the bidding price?

The GST on imports works a little different to GST on local products (which is what that rule is for), for a couple of reasons - unlike goods sold by Australian sellers, it only applies to purchases under $1000, and because that includes multiple item purchases, the total purchase value from any given seller isn't known until checkout, and also because it makes a difference where the delivery address is (for example, an Australian buyer having an item sent to an overseas address, will not have GST applied to their purchase). This puts the GST on international items in a "may or may not apply" situation, so having it in the price displayed in search results, for example, can also be misleading. Having it at checkout, where the purchase total and delivery address is confirmed, is the better option from eBay's perspective. 

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Re: Why isn't the GST included in the bidding price?

The GST on imports works a little different to GST on local products (which is what that rule is for), for a couple of reasons - unlike goods sold by Australian sellers, it only applies to purchases under $1000, and because that includes multiple item purchases, the total purchase value from any given seller isn't known until checkout, and also because it makes a difference where the delivery address is (for example, an Australian buyer having an item sent to an overseas address, will not have GST applied to their purchase). This puts the GST on international items in a "may or may not apply" situation, so having it in the price displayed in search results, for example, can also be misleading. Having it at checkout, where the purchase total and delivery address is confirmed, is the better option from eBay's perspective. 

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Re: Why isn't the GST included in the bidding price?

As DG has said which means everyone in Australia just needs to know to add a further 10% on top of virtually anything imported.

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Re: Why isn't the GST included in the bidding price?

I call B.S. Adding GST before or after multible purchases won't make a difference, this can be done automatically. Ebay should atleast but up a notification about GST (proforma calculation) before the purchase/bid is accepted. Everything the ACCC says about this in consumer law is that GST has to be inclusive.... I don't think ebay can pick and choose the consumer laws it wants to follow?

The ony time it is not inclusive is with wholesale (not to consumers; this applies imports as consumers can't import wholesale without all the product complience certificates and safety inspections) or in a service quote / invoice such as from a mechanic, in that instance it is tacked onto the end after labour and parts are tallied. Another example is a private import where we have to pay our own taxes.

Ebay is a ".com.au" site selling to Australian consumers (retail customers) so it should be conforming to Australian consumer law. I want to know; how long will it take for the ACCC to fine ebay for their breach, and why hasn't ebay taken a proactive possition on this?

This is not Canada or the US. GST is allways inclusive. Very un-Australian.. Poor form ebay.

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Re: Why isn't the GST included in the bidding price?

Have you bothered to read post #2 above before posting?

 

If you still think ebay is wrong I suggest you contact the ACCC yourself and make sure they know what is going on.  I am sure they will appreciate it.

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Re: Why isn't the GST included in the bidding price?

To reword what has already been said most excellentlyh by digital*ghost and kopenhagen...

 

The phrase you used, dachrma, is from ACCC's information for Australian businesses. The ACCC don't have jurisdiction over businesses run overseas by people who are neither Australian-born nor Australian residents, and are thus not subject to Australian legislation for their business.

 

(However, Australian legislation does come into play in terms of what Australian buyers must pay with respect to GST or import dutiy or any relevant Customs charges.)

 

The Australian Government has now decided that goods and services under $1000 will also be subject to 10% GST, rather than being exempt as was previously the case. They've also decided that the collecting and administrating of this GST component will not be the responsibility of Customs - for good reason. It would be prohibitively expensive to have it enforced in that way, and it's likely that the cost of implementation would outweigh the cost of any financial benefit rendered to the ATO. (Also, it would create a right royal backup of parcels, extended waiting times - chaos. (A sort-of financial impaction, a Customs Constipation Effect...)

 

Then who is collecting the GST on behalf of the ATO? The sellers... or if multiple sellers are selling on an electronic platform, then it's the platform who collects the GST... or if GST is not paid at the point of sale because the goods are being sent to an international address (parcel forwarder), then the parcel forwarder is collecting the GST.

 

These businesses have entered in agreements with the Australian government, to collect and remit the GST for low-value imported goods sold to Australian buyers directly to the ATO.

 

Nowhere in the agreements or legislation covering the GST on low-value imported goods is there any requirement to "state the total price of the good or service as a single figure [...] [which] should include any tax, duty, fee, levy or additiohnal charges (e.g., GST or airport tax)." That applies to Australian businesses selling in Australia to Australian buyers only.

 

@jorge-correia-lima, let me give an example that I hope will show you why eBay, for instance, can't have the price inclusive of GST showing on the listing. Let's say that I find a gorgeous Wedgwood Edme cake stand (antique white only, as Wedgwood never made one in the cream), being sold by a US seller. The price that shows when I'm looking is the price in AUD converted from the US price, and that could change because of fluctuating exchange rates. (It could also change depending on how I choose the amount to be calculcated; I could stipulate that my bank will perform the exchange according to their current exchange rate, and that will be different to the amount if I stipulate instead that PayPal perform the exchange according to their current exchange rate.

 

That's one thing. The AUD price is already an estimate, not a guaranteed price.

 

Already there is potential for the GST amount to be slightly different, since the AUD price is going to be different according to my chosen rate of exchange.

 

But what if, instead of having the item sent directly to me by the seller, I choose instead to have it sent to my US parcel forwarder? In that case, I won't have GST charged at point of sale at all. (It will be up to my parcel forwarder to undertake the administration of collecting the GST.)

 

Wait again... What if I also find a Wedgwood Edme large pitcher? And a genuine 18th century Seau à glace? The price together is probably going to be over $1000. So... no GST would be collected by eBay at point of sale. Instead, Customs will do the charging when the goods come into the country.

 

Wait yet again. What if the item is listed as being sent via the Global Shipping Program? And I convince the seller to send via USPS or FedEx or some other means? The postage price will have changed, and that means that the GST amount will also change (since postage is included in the Goods & Services Tax, being a service). It is even possible that a change in postage method will mean the difference between whether eBay must collect the GST (total under $1000 incl postage) or Customs will handle it (total incl postage is over $1000).

 

I hope this explains why it wouldn't be possible to set out a GST-inclusive price for Australian buyers on eBay, because the amount of GST payable depends on so many different factors. Instead, eBay have done what I suppose is the only realistic thing - left the prices as ex-GST and then applied any applicable GST at the point of sale when the final total is positively known and GST can be correctly applied.

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Re: Why isn't the GST included in the bidding price?

It might pay you to get your facts straight before you start accusing ebay of breaking the law.  If you read the relevant legislation you'll see that ebay are fully complying with the law on GST on imports.

 

Read the first post in this thread and if you need proof of what I said at the time, follow the link I provided in the post to the ATO site and the relevant information.

 

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

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Re: Why isn't the GST included in the bidding price?

Agree wholeheartedly. A con by Ebay!! I wouldn't be surprised if they are doubling up too, charging both buyer and seller😡
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Re: Why isn't the GST included in the bidding price?

And does it ever get paid to the government? I very much doubt it!!
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Re: Why isn't the GST included in the bidding price?

Given it is law, and eBay don't have a choice if they want to operate in Australia, you are undoubtedly wrong.

 

Is there any reason why you dragged up this old thread to post nothing of value?

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