GST only being added to total after commiting to buy

[apsilonblue]

So we all know the laws changed July 1st and I've just made my first ebay purchase since then. Problem is GST isn't being shown until after you commit to buy and I'm not sure this is legal. Isn't it required in Australia that the total price be shown including any taxes prior to being locked into a purchase? Anyone know for sure?

I tried asking this of ebay customer service and they just ended the chat LOL. Now I'm defintiely going to pursue it.

[banmaryandah]

Some listings show import charges (GST) for under $1000 items, some don't. However the amount quoted is nowhere near 10% of the item cost plus postage. Find a few listings that can be added to and removed from a cart and see if they are 10%. No way will I buy from overseas while this is happening. Postage prices on small items are ridiculous without GST, and how come when we send something out of Australia we don't pay GST on postage for international mail. Special international post stamps are required. Wouldn't it be the same for example from UK to Australia that there is no added VAT at the UK end, so why is GST being added and at a rate seemingly higher than 10%.

[lyndal1838]

Yes, you are right that in Australia a Tax Invoice must show the total price including fees and taxes but the new GST pn imported goods is different in that the seller is not adding the GST to their invoice.

The GST is being added by ebay when you actually pay for the goods.  It is shown on the invoice before you make the payment.

It is all above board and complies with Australian Law.

[apsilonblue]

It's shown before you make payment but the problem is you're having to commit to the purchase without being shown the total first.  There's no way you can back out of the transaction at that point you're locked in. That's the part I'm not sure about. I've sent an enquiry to ACCC and will look at other areas when i have time.

[kopenhagen5]

It will soon be more common place that everyone knows all imports have 10% added on top.

Same as it's been in other countires for a long time.

Just like making a purchase on holidays and need to pay duty when brought into Australia.

It is always at the local point tax/duties are added.

[apsilonblue]

Ah but that's not the case. Not all imports will have it added. According to https://www.homeaffairs.gov.au/busi/cargo-support-trade-and-goods/importing-goods/duty-rates-and-tax... and confirmed via email, if goods don't have GST collected at the point of sale, ie business who don't exceed the AUD$75k limit necessary to collect GST, then GST also won't be collected at the border as long as they're still below AUD$1k.

[imastawka]

You need to read your own link -

Businesses with sales (subject to Australian GST) of AUD75000 or more to consumers in Australia within a 12 month period, will need to register with the Australian Taxation Office (ATO), collect GST at the point of sale and remit that GST to the ATO.

This includes businesses that are:

• merchants who sell goods to consumers
• electronic distribution platform operators
• re-deliverers

The electronic distribution platform operator is ebay.

All imports attract the GST now.

[apsilonblue]

Not talking about ebay specifically, it was in response to kopenhagen5 comment that all imports have GST added.

I and the link say if GST isn't collected at the point of sale then it also won't be collected at the border. So if you buy a $200 something from somelittleshop.com that's located outside of Aust that sells less than $75k to Aussies each year and therefore doesn't need to resgister for and collect GST then that item will be delivered to you GST free. If you buy a $1200 item from the same place then GST will be collected at the border. So not all imports will have GST added to them. Via ebay yes, via other vendors, possibly not. I've clarifed that with Home Affairs drectly, not just the link.

[ezybiz247]

I agree. And when you sort eBay listings in order of total price plus postage does this total price include the extra GST or do we have to dig into every listing to see if the seller is from Australia or overseas - and then add the 10% to every overseas sourced item? If so that sort function is next to useless. The total advertised price on eBay should include the GST before anyone commits to a purchase - just like buying from a local shop in Australia.

[xerxes_au]

I completely agree, this is wrong. I've done thousands in business purchasing on eBay in the past financial year, for a business which isn't registered for GST. I see what is going on here and I am not using eBay for any further purchasing until they knock it off with the bait and switch behaviour with the item price not including GST for international sellers. Maybe it's technically legal to do it before I agree to the purchase, but It isn't legal to to this after I've agreed in Australia and it's quite frustrating in any case to be on the receiving of such behaviour anyway. 10% is a very large expense and can easily make the difference whether something is considered or not. The sort by price search filter now no longer works.