Will GST be charged on items bought from overseas and shipped to an Australian address?

I buy second hand collectables from small sellers located in the US and Europe. If I have them shipped to me in Australia will GST somehow be charged from July 1? What if shipping is to a US address?

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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?


@worzel*gummidge wrote:

I really hope the opposition or somebody smart enough will challenge this dumb law and get it thrown out!

Are you really serious?

We have had the GST for 18 years now and it has taken the government all this time to close this loophole.

If it hasn't been challenged in all this time I doubt that it ever will be.

 

When the GST was first introduced online shopping from overseas was a small fraction of what it is now....the government was not missing out on a great amount of money.


Compared to the rest of the world we have a very generous Customs threshold....it is not long ago that it was only $400 but the government raised it to the current limit of $1000. 

 

If you are making such a fuss now about the GST I can't help but wonder what sort of a meltdown you had when it was first introduced?

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@worzel*gummidge wrote:
The ATO cannot apply GST to USED items that have already had tax paid on them in the country of origin. Ebay are stating that they are not the sellers but a site that hosts sellers.
The government cannot request tax on used items that have tax already paid on them. Same with purchasing items in the US where an Australian customer is required to pay local taxes to the US government AND be expected to pay tax here??? Nope.
If the whole idea of this is to stop the whingers like Jerry Harvey because people are buying the goods he sells at a far cheaper price o/s then fair enough but what about items that _do_not_exist_ in Australia and people have no choice but to buy from the UK or US etc??



As dave mentions, goods sold from sellers overseas are not meant to include local sales or consumption taxes - if any of your purchases from overseas sellers have added a sales tax, or additional amounts for their own consumption tax (GST, VAT etc), you are paying money for nothing, because those sellers don't have to pass on that to their government, and there are no current laws in existence (that I am aware of) that can be applied cross-border (that is, in order for an Australian consumer to pay international taxes, there needs to be an international law that compels them to, and I am not aware of any that currently exist; if you are, I would really like to see a source, as the implications of that would be interesting to say the least).

 

GST is revenue for the Australian government, sourced directly from Australian consumers, anyway, so whether or not tax is paid to an international government is irrelevent, unless there is a system in place where any sales tax that is charged on an item located overseas then makes its way from the government over there, to the government over here (again, I know of no such system in place). 

 

Of course, on a site like eBay where they do not provide a function for sellers who are required to collect things like GST or VAT to separate item price and tax, the purchase price becomes all-inclusive and you can theoretically pay the additional amount, presuming the seller hasn't accounted for the difference in other ways (for example, say a seller lists something for sale that's $50, including any applicable consumption tax they are obliged to charge to domestic buyers, and let's just say - for the sake of ease - the tax payable in that $50 is $5, meaning the item price is really $45. What if the seller is fully aware this means international buyers are overcharged on the item price, so decide to subsidise the postage cost, charging only $10 when it really costs $15? Other sellers will just pocket the extra, but ultimately it means the same thing - no tax has been paid on the purchase of that product by an international buyer).

 

 

 

 

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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?


@countessalmirena wrote:

I should have explained that the example I gave was from a company selling on its own website, not through eBay.

 

At the moment, I am hoping that my favourite international sellers don't have a lot of Australian customers! With an additional 10% being added on to overseas purchases going to Australia, it may well mean that determined buyers will actually not be faced with the GST charge - if the drop in Australian customers overall leads to businesses having less than that $75,000 limit in Australian sales.

 

As far as eBay is concerned, there will still be some overseas purchases for me, but the downside for eBay is that if I find an item listed on eBay which I want (listed by an international seller), I am more likely to google that seller to see if they sell outside eBay as well, and could thus potentially not have to collect that 10% GST.


I would assume, that if the GST is not collected at time of sale, then it will be processed at customs clearance centres, as is currently the case with imports over $1000.   That is item is held, until such time as GST and all other import charges are paid.

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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?


@gutterpunkz05 wrote:

I would assume, that if the GST is not collected at time of sale, then it will be processed at customs clearance centres, as is currently the case with imports over $1000.   That is item is held, until such time as GST and all other import charges are paid.


I don't know for sure, but I actually doubt very much that this is going to happen.

 

The reason being is that it defeats the purpose of the vendor-collects model, and also means customs would need a method to determine where the item was purchased, whether the seller of that item is required to collect GST, and whether GST was indeed collected. 

 

The difficulties in going through that process on all international mail is - I suspect - the reason why they decided to target sites like eBay as vendors, since collectively they would account for a decent chunk of international purchases and they can ensure that the GST is being charged and remitted, whereas it becomes much more difficult to determine if an individual or private business is turning over more than $75k in Australia, and whether they are complying with the new laws. Your average purchase from eBay is likely going to have nothing to indicate where it was purchased, and many don't even include invoices, plus some sellers will mark the value of everything at $5 or even less, while if ebay are collecting it, there is no option but to charge it on the actual purchase price. 

 

They also claim that this system is designed to prevent double-payment of GST, but that claim would be bogus if they then charged it on basically any package that arrived in Aus with no indication as to whether the vendor had collected GST (they do also state that if GST is paid twice, the buyer has to try and get the GST amount back from the seller, so the scenario is possible, but that may be in unique cases, such as the seller erroneously charging GST on an order over $1k). 

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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?


@gutterpunkz05 wrote:

@countessalmirena

I would assume, that if the GST is not collected at time of sale, then it will be processed at customs clearance centres, as is currently the case with imports over $1000.   That is item is held, until such time as GST and all other import charges are paid.


This is going to be a nightmare.

 

Firstly are all the international eBay sellers going to have an eBay notification on parcels that the GST has been paid already? Will they evn know that the duty has been already paid?

 

And is customs going to be leasing extra warehouses to store all the parcels until the duty has been paid (or proven to have been already paid) on all incoming parcels?

 

You thought the GSP was slow in delivering goods, wait until this load of frogspawn takes effect.....................

 

Edit. You kind of beat me to it Digi..............sigh.

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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?


@padi*0409 wrote:

 

Edit. You kind of beat me to it Digi..............sigh.


 

I was spent about a minute trying to come up with a clever, ninja-related response. Then realised I was just staring blankly at my keyboard and thinking about ninjas - certainly not the mark of a wily ninja with lightning fast reflexes. Smiley LOL

 

I did forget to mention that one of the other reasons they wanted a vendor-collects model was to avoid the delay and throttling of incoming mail, so to have an additional system in place that will effetively do that anyway, doesn't make too much sense. 

 

I could be wrong (and often am Smiley Very Happy ) but I suspect that in the grand scheme of things, there will be very little change to anything, other than the fact that the sites / sellers who are complying will be 10% more expensive, and the government will be a little bit happier. 

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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?

Just did a mock purchase from an O/S seller and good old Ebay is charging GST on both the item cost and postage. GST is only payable on the actual item.
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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?

I just did a real purchase and ebay has not got it wrong.

It is a Goods and Services Tax....postage is a Service.

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Re: Will GST be charged on items bought from overseas and shipped to an Australian address?

Then why are no other O/S companies adding gst postage only to the goods. Also the Aust Govt has stated that it only applies to goods and NOT postage.
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@sparrow2207 wrote:
Then why are no other O/S companies adding gst postage only to the goods. Also the Aust Govt has stated that it only applies to goods and NOT postage.

 RE:   Also the Aust Govt has stated that it only applies to goods and NOT postage. thats exactly what i read and heard...

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