Returns and GST

[jacky5819]

I am a buyer who has already had to pay GST on goods bought from overseas. Yep, annoying but that's the law. My issue is, what happens if I do not receive an item or I need to return it. Will the GST amount be returned to me by ebay? Will this happen automatically?

Cheers!

[countessalmirena]

If your claim (for item not arriving or for item significantly not as described) under eBay's Money Back Guarantee is concluded in your favour, you will receive back the full amount of your payment - so far as I am aware.

It will be up to eBay to process and administrate anything to do with the reporting of GST and collection of GST, hence also up to eBay to deal with refund situations. As you personally don't collect the GST and remit it to the ATO, so too you personally will not be out of pocket (or should not be out of pocket) for any GST component if the transaction is cancelled or refunded. But don't hesitate to check this with eBay CS using the Have us call you option. I have my doubts that they will have all the answers at this stage, as everyone's still getting used to the GST on low-value imported goods, but it would be interesting to see just how up-to-the-minute the current information for CS reps is.

[jacky5819]

Thanks. It will be interesting because the GST amount comes out of my account as a seperate transaction. For example, I recently bought something for $6.92, and paid 69 cents GST. Two amounts show on my account. It is not even displayed as GST

on the paypal email, just as an additional amount, sent to gst_au@ebay.com. If a payment is refunded through paypal, how does ebay know to repay the GST?

It will be interesting to see what happens.

Cheers

[lyndal1838]

The GST component goes into an ebay owned paypal account from which they remit the funds to the ATO.

Just as an explanation of how the GST has been working for the last 18 years......if a refund is made for a payment that had GST added you will get the full amount of the refund and it is up to the entity who paid the GST to take the amount into account when they next remit the money to the ATO.

They do not apply to the ATO for a refund of the GST already paid.

[jacky5819]

Thanks Lyndal. I have always understood how GST is paid by companies but have never been in a situation where the GST was paid as a seperate amount by a different entity. In this case, it is ebay and the seller. Usually it is one amount in total. I realise that overseas sellers would have no reason or inclination to collect GST for another country, and that this is one way of ensuring that the GST is collected. I just hope it works for refunds. Time will tell.

Cheers

[brerrabbit585]

From this ATO webpage:  https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Infor...

The GST rules that apply to goods returned in our domestic market also apply for returned low value imported goods. This means if you return goods and get a refund, you should also get a refund of the GST.

[jacky5819]

Yep, thank you, I realise that is the case. I hope that procedures are in place to ensure that this is done when a refund will come from two seperate entities...the seller and Ebay.

Cheers

[lyndal1838]

There are plenty of instances where a refund comes from 2 sources and it has worked well.

Why should it be any different for the GST?

Why are you constantly looking for obstacles to the implementation of the GST on low value items?

[jacky5819]

Hi Lyndal. I am not looking at obstacles at all. I am not complaining about the implementation of the GST. The law is the law. I understand that the GST is to be paid on refunds.

If an overseas seller makes a refund, they will only refund the cost less GST.

Will Ebay pick up that GST needs to be refunded also or, as a buyer, will I need to contact Ebay for refund.

Simple question. It is about procedure.

Cheers

[k1ooo-slr-sales]

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@jacky5819 wrote:
Hi Lyndal. I am not looking at obstacles at all. I am not complaining about the implementation of the GST. The law is the law. I understand that the GST is to be paid on refunds.

If an overseas seller makes a refund, they will only refund the cost less GST.

Will Ebay pick up that GST needs to be refunded also or, as a buyer, will I need to contact Ebay for refund.

Simple question. It is about procedure.

Cheers

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overseas sellers are not collecting the GST, eBay is.  Therefore, eBay would be refunding the GST in the event of a refund/return.