Paying GST to ATO for imported items which GST already paid

[prime.gadgets]

I'm new Amazon seller. I pay GST when I import items to Australia via Alibaba. When I sell that item on Ebay.com.au to Australian buyer, do I have to pay the GST again to ATO? What is the GST calculation method here?

[kopenhagen5]

A turnover of $75,000 plus requires you to register for GST.

https://www.ato.gov.au/Business/GST/Registering-for-GST/

[prime.gadgets]

Thanks for the reply. What I actually wanted to know is this.

I import the item FOB value 5$. I have to pay GST of (0.5$)  when I clear this in Australia.

Then I sell this for 10$ on eBay. Then again 1$ of GST has to pay for the ATO.

If I'm registered for GST, should I only pay 0.5$  which is (1-0.5) as I have paid GST during the import?  Is this a benefit of registering for GST with ATO?

[lyndal1838]

Is your turnover more than $75,000?

If yes, then you have to register for GST, no ifs or buts.

If no, then it is up to you.  Personally I would not register unless I have to but some sellers who buy raw materials from overseas have said that it is economically sound to be able to claim their GST credits.

[k1ooo-slr-sales]

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@prime.gadgets wrote:

I'm new Amazon seller. I pay GST when I import items to Australia via Alibaba. When I sell that item on Ebay.com.au to Australian buyer, do I have to pay the GST again to ATO? What is the GST calculation method here?

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@prime.gadgets wrote:

Thanks for the reply. What I actually wanted to know is this.

I import the item FOB value 5$. I have to pay GST of (0.5$)  when I clear this in Australia.

Then I sell this for 10$ on eBay. Then again 1$ of GST has to pay for the ATO.

If I'm registered for GST, should I only pay 0.5$  which is (1-0.5) as I have paid GST during the import?  Is this a benefit of registering for GST with ATO?

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I notice your eBay account is registered in Sri Lanka.

Are you importing items TO Australia or INTO Australia?

Are you IN Australia or are you having your “Alibaba” items sent to an Australian contact to be on-sold?

Are intending to sell to Australians while remaining in Sri Lanka?

When an an item is sold by GST registered businesses to Australians, the GST is included in the retail price and not added afterwards.  Simply put, if a business pays GST on items they import they still have to forward/pay GST to the Tax Office based on the sale price (i.e. 1/11th of the sale price). Businesses can claim GST credits, but I don’t know much about that process.

I think you need to contact the ATO or an Australian based Tax Accountant to get accurate advice of your (potential) obligations as these boards are manned by regular members and I doubt that any poster on these boards gives professional financial/tax advice for free.  I would think that anyone giving professional advice would be required to declare their qualifications or membership of professional bodies (e.g. CPA member/number)

Disclaimer: I have no accounting, taxation or financial qualifications.  Any information posted by me is just my opinion . . . provided for free . . . and only worth the amount of money I charge for providing such information i.e. it is worthless advice! If you follow my advice and suffer financial loss you can sue me for the amount you paid me for the advice.

[clarry100]

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@prime.gadgets wrote:

Thanks for the reply. What I actually wanted to know is this.

I import the item FOB value 5$. I have to pay GST of (0.5$)  when I clear this in Australia.

Then I sell this for 10$ on eBay. Then again 1$ of GST has to pay for the ATO.

If I'm registered for GST, should I only pay 0.5$  which is (1-0.5) as I have paid GST during the import?  Is this a benefit of registering for GST with ATO?

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What you say is correct only IF you are GST registered. You must register if you will exceed $AUD75K total turnover in a 12-month rolling tme frame. Otherwise it is optional.

If you are not GST registered then you will still have to pay the GST for your imported goods, but you cannot add GST onto the sale price of your goods as you are not authorised to collect GST if unregistered.

[k1ooo-slr-sales · Accepted solution]

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@prime.gadgets wrote:

Thanks for the reply. What I actually wanted to know is this.

I import the item FOB value 5$. I have to pay GST of (0.5$)  when I clear this in Australia.

Then I sell this for 10$ on eBay. Then again 1$ $0.91 of GST has to pay for the ATO.

GST due is 1/11th of sell price (assuming free postage)

If I'm registered for GST, should I only pay 0.5$  $0.41 which is (1 0.91 - 0.5) as I have paid GST during the import?  Is this a benefit of registering for GST with ATO?

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I know I am being picky with my corrections, but it is a basic rule of GST that when an item is listed on eBay.au by a GST registered seller the price is GST inclusive . . . which means GST paid by the buyer is 1/11th of the sale price

[prime.gadgets]

Thanks for the reply.

If my sales are lower than 75K and I do not register for the GST, does Ebay deduct 1/11 for the GST from my sales income?

Is there a benefit for me to not to register for GST if sales are lower than 75K?

[lyndal1838]

Ebay has no authority to deduct any GST from your sales income.

IF your turnover requires you to be registered for GST you must collect it from your buyers by way of adding it to your prices and then remit it to the ATO.

The benefit of not registering for GST if your turnover is less than $75,000 is that you do not have to give 10% of your income to the ATO.

[k1ooo-slr-sales]

ARE YOU IN AUSTRALIA OR SRI LANKA?