Incorrectly adding GST to secondhand auto parts purchased from the UK

[bgt70l]

Recently, I wished to purchase a small, used  auto part from the UK.            At E-Bay's checkout, I noticed that a GST amount had been added to the total sale price.         I refused to proceed with the purchase because of this illegally levied tax.                       When in Australia, did anyone ever had to pay GST on used auto parts?

[domino-710]

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@countessalmirena wrote:

As you say, k1ooo, eBay don't automatically add a GST component to sales within Australia. They'd be in hot water if they did.

You've explained it exactly: prices on eBay.com.au are GST-inclusive where GST is payable. For big businesses in Australia (or any business/seller with that $75,000+ turnover), they'll have the GST-incl. price as the listed price on eBay. We - the buyers - will probably not even realise that we are paying GST. For transactions with smaller businesses below the threshold, GST isn't payable, and the listed price will simply be the price set by the seller without GST entering the picture at all.

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Because the GST has already been paid on the initial purchase.

When do I need to register?

If you haven't registered for GST, and you become aware that your GST turnover will exceed the $75,000 per year threshold, you will have to register for GST within 21 days.

It's a good idea to check each month to ensure you're not likely to go over the over the limit. Keeping an eye on your GST turnover is important so you can register if necessary.

If your GST turnover is below the $75,000, registering for GST is optional.

You may choose to register if your GST turnover is below the $75,000 threshold, however this means that once registered, regardless of your turnover, you must include GST in your fees and claim GST credits for your business purchases.

IE - You charge GST - and claim ' input credits ' - there are certain advantages to registering for GST - though a quarterly return is a tad more work.

[davewil1964]

It's not hard!

Domestic sales through eBay require the seller to add GST, if applicable.

Imports through eBay require eBay to apply GST.

Simple. Read the relevant tax information. It is clearly available to you, as it is to any Australian (and probably non-Australian). You can bleet all you like on the boards, or even to your local member, but it won't change anything.

[bgt70l · Accepted solution]

Dave, your comment is only partially correct................

"Domestic sales through eBay require the seller to add GST, if applicable.    ( yes but only if it is a new item)         Imports through eBay require eBay to apply GST.    (we all now agree that this is the case)     Simple. Read the relevant tax information. It is clearly available to you, as it is to any Australian (and probably non-Australian). You can bleet (sic) all you like on the boards, or even to your local member, but it won't change anything."

You are in a parallel universe.            Whenever I buy a used auto part in Australia from a private EBay seller I do not have to pay GST nor does EBay apply it.               End of discussion!!!

[countessalmirena]

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@bgt70l wrote:

Whenever I buy a used auto part in Australia from a private EBay seller I do not have to pay GST nor does EBay apply it.               End of discussion!!!

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Whenever you buy a used auto part in Australia from a private eBay seller, you will pay GST if the seller meets the $75,000 threshold. It's not collected by eBay; eBay doesn't apply it. The seller does apply it (otherwise they are acting illegally and can have hefty penalties). You pay it as part of the GST-inclusive price, and the seller lodges their regular activity statements or annual returns, upon which time they will pay the GST or receive GST credits or refunds as appropriate.

If you buy a used auto part in Australia from a private eBay seller who does not meet the $75,000 threshold, they don't have to charge GST and you won't pay GST.

eBay is irrelevant in either of the above scenarios. eBay is not authorised to collect GST on the payment made for the goods and/or services by the seller, if the seller is in Australia. It is the seller's responsibility. The price is not listed as ex-GST; the seller lists the goods with a GST-incl. price (if GST is payable on the goods).

So... if you've not been paying any GST on used auto parts, but you've been buying from eBay sellers who clearly are running a business on eBay, and if that business has an annual turnover of $75,000 minimum, that does not mean that you "do not have to pay GST"; it just means that there's been a lack of compliance.

[bgt70l]

"If you buy a used auto part in Australia from a private eBay seller who does not meet the $75,000 threshold, they don't have to charge GST and you won't pay GST."

That is exactly the point that I have been attempting to make.           I am not interested in commentary and opinions by professional dealers and sellers on Ebay and have no interest in how they operate.               My concern was always this, -  why I am forced to pay GST or import duty on used auto parts from private sellers internationally, but not in Australia?           That was all I asked for, and instead got bombarded with high handed opinions from Ebay apologists and professional dealers and sellers.            Lets leave it there shall we?

[k1ooo-slr-sales]

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@bgt70l wrote:

You are in a parallel universe.            Whenever I buy a used auto part in Australia from a private EBay seller I do not have to pay GST nor does EBay apply it.               End of discussion!!!

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**sigh**

If I was to list a thingamejig for a 1970 Gadgetmobile then there would be no GST payable on the Buy-Now price as I am just a casual EBay seller.

However, if you bought the same item, at the same Buy-Now price, from a seller with 49311 feedback in just one year and turnover of $200,000 then 1/11th of the price you pay would be GST.  The GST is included in the price and not added to the Buy-Now price.

Can you agree with that?

(still waiting for that apology for your disparaging reply to my first post on this thread)

[k1ooo-slr-sales]

I think it is worth reposting the first reply to your your Opening Post, the one made by me, where I correctly answered the question you asked!

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@k1ooo-slr-sales wrote:

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@bgt70l wrote:

Recently, I wished to purchase a small, used  auto part from the UK.            At E-Bay's checkout, I noticed that a GST amount had been added to the total sale price.         I refused to proceed with the purchase because of this illegally levied tax.                       When in Australia, did anyone ever had to pay GST on used auto parts?

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A) whenever those parts have been purchased from a seller that is registered for GST (unless an 'off the books' cash transaction was made)

As for overseas 2nd hand items, they have had GST applied for near on 4 years now (even if bought on eBay from a casual seller, from any seller actually)

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It took long enough to get through to you that GST is applicable on overseas purchases, but we got there.

Not sure if you understand that GST is payable if buying from an Australian business that is registered for GST as you have posted some conflicting statements around that.

Here is your reply to my factual post:

@bgt70l wrote:

That is absolute rubbish.            I have never, in my whole life (age 82) ever, paid GST from any sellers large, small,  GST registered or not, for used auto parts.                 Your comment is as ridiculous as it is misleading - Ebay Australia does not levy GST on the sale or purchase of used auto parts.

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[gutterpunkz05]

Sorry  K1.............................It is not hard  BGT

Or is BGT   short for Beligerent

[gutterpunkz05]

You could also add .........    I was wrong

[gutterpunkz05]

You should also apologize to the board in general, and hang your head in shame at the TAG you applied.

Disgusting for anyone let alone someone who claims to be 82