I really want to buy a mobile phone it ships from HK, I am tempting to buy it at the end of this month to see if there is a better deal come out. However if I buy and pay before 01/07/2017 and item arrives after 01/07, will I have to pay GST for that?
sorry 1st time post here if it duplicates with similar topic
Here is a thought, rather than collecting GST from millions of sellers out there in the world, why government not just collecting GST from carriers such as DHL, USPS, etc?
How does the carrier get the GST for the goods from the seller?
So if you buy something from me, you want me to give the 10% GST to AusPost, and then have AusPost hand that to the government? Well, it's certainly a good job creation scheme.
The funny thing is that Europe has already got a system for collecting GST on imports. I read many complaints written by Europeans so those people are paying it (I believe that they pay the carrier), so it seems like it works. Just make people pay the tax on items they receive.
In Europe, it seems that they must pick up the items and pay on receiving. If the Australian government thinks that's too clunky, then they can think of a way to streamline it, such as allowing payment over the Internet between the time the package enters the country and when it's delivered.
Whoever told them to be creative and force overseas vendors to collect the Danegeld (the GST) on their behalf is an idiot. Just look at Europe, which is already collecting this revenue, and act similarly.
Or do one better and keep things the way they are. If local companies think it's unfair, then remove GST for items less than the same threshold as overseas purchases.
Thanks. Rant over.
@twocsies: I don't know if you've noticed, but Australia already collects GST on imports - maybe you've heard of Customs.
If companies like eBay are trading in Australia, it's actually not all that difficult for them to add GST to items sold and remit that to the government. If buy an item that it located overseas, eBay simply adds 10% GST at checkout. For local items the seller is responsible for the GST (no change there).
This isn't strictly needed as Customs already handles GST, the government is simply trying to unload the task onto someone else.
It's not like we haven't figured out how to do it, we just don't collect it on low-value items at the moment.
@D C: eBay is one ccompany but there are tens of thousands of companoes operating outside the jurisdiction of the Australian government,. They don't want to collect the taxes. And
As far as i know, no other country in the wprld forces companies outside its borders to collect its taxes. I may be wrong and there may be other countries that have already done it successfully. I dont think so.
Ebay is not trading in Australia. It only seems like it because they are a middleman that allows companies outside Australia to sell to people inside.
@twocsies: I've been to the eBay office, so they certainly have a presence here. Ebay (correctly) argue they only supply a service rather than goods, but still manage to avoid GST (on seller fees) anyway.
Getting eBay to collect the GST makes perfect sense in this case, but yeah, good luck in getting Alibaba to play along. And even eBay have said they'll take their ball and go home if forced to collect GST.
Regardless, we'll just follow the UK model. Customs bung a "$xx GST DUE" sticker on the parcel (based on the CN22 sticker or their assessment), parcel goes to the post office, you get a notice in your mailbox to collect it stating what GST is due. Similar to how "insufficient postage" works.
I get all my stuff delivered to a parcel locker, in that case they can send me a bill (paid via my AusPost account) and the parcel gets released once paid. I doubt Australia is smart enough to do that though.
Even in the UK (who try to shaft you on everything) items under ~$20 don't attract GST (eBay could collect that though), I don't know if that's the same here.
The original argument for the $1000 GST-free cut-off was costs outweighed revenue collected - hence the urge to get the marketplaces to collect it. Let them wear the cost.
@D C: as i mentioned, eBay is not selling anything in Australia. Ebay is facilitating trade between companies that have nothing to do with Australia. Although the goal is for GST to be paid by the consumer, the foolish mechanism of forcing foreign companies to collect it means that they are paying the tax. However, foreign companies have no vote. We need to stand up for this poorly thought out tax on foreign companies. If the government wants to tax Australians and Australian companies, then that's okay by me, but not this overreach to force foreign companies to collect
Although you think ebay is a fun diversion because it's a middleman with a stronger presence in Australia, that is precisely why it's a poor argument. The law is designed to tax businesses inside and outside, so consider the outside. Ans if you don't understand the intent of the law, e.g. It is for all purchases regardless of cost, then it seems I'm wasting my time anyway.
P.S. I'm talking about "the proposed 10% import tax that was to come into effect from 1/7/2017 (for low value items), then this tax has been delayed until 1/7/2018."
@twocsies: eBay (or other foreign companies) are not going to pay any taxes to Australia becuase of this.
It's not a tax on foreign businesses. Who do you think will pay it?
YOU ARE!
It's a tax on YOU!
YOU are going to pay 10% GST on anything YOU purchase from overseas in 12 months time, regardless of who YOU buy it from.
What does it matter who collects it? From an efficiency point of view, I'd rather eBay do it than Customs / Post Office. If you think the government is overstepping its mark by imposing legislation, then fine. It makes no difference to the companies tax bill.
eBay doesn't get a vote even if they have an Australia presence because companies don't vote. You want to trade in Australia? The government makes the rules.
This is the same as sellers complaining when eBay jacks up fees (or postage rates). You don't pay those, you pass them onto your customer.
@D C: Do you understand why foreign businesses consider it a tax on them? They need to add 10% to their price, collect it, then send the tax to the government. A sales tax does not tax purchasers, that's why it's not called a purchase tax. It's a sales tax because it taxes a seller.
@D C: Why do you keep harping on eBay. It's not an eBay tax. This tax is for all vendors. And it taxes their products anywhere in the world. Even if they have no Australia office.
@D C: The government says that the business pays the tax, not the consumer.
If you are registered for GST – or required to be – the goods and services you sell in Australia are generally taxable unless they are GST-free or input-taxed… You pay GST on the taxable sales you make…
https://www.ato.gov.au/Business/GST/When-to-charge-GST-(and-when-not-to)/Taxable-sales/
Although the sales tax is paid for with money from the customer, it is clearly a sale on the sale. That differs from paing GST at customs, which is an "indirect tax zone", paid by the customer.
@twocsies: IT'S CALLED SALES TAX BECAUSE IT'S A TAX ON GOODS SOLD! THE SALE OF A GOOD OR SERVICE IS TAXED!
A SALE OCCURRED!
YOU PAY TAX ON IT!
Dear god, please don't go into business, finance, or politics.
At least read a dictionary.
What part of this simple concept do you not understand?
The company is not charged additional taxes.
Who is paying the tax?
THE BUYER!!!!
Not the company!
The company collects an extra 10% from the buyer, and passes it straight to the government.
There is a COST to the company for collecting a tax, essential 'doing the paperwork' aka 'BAS' which Oz companies already do (and non-Oz companies will simply say 'sod off').
If the government does manage to make foreign companies collect GST (unlikely), it will only apply to Australian buyers. Who are going to have to pay it via Customs anyway.
Mod: Removed personal attack.
@D C: Rude. Look beyond your ad hominum attacks and you would see that it's not even the point.
The point is that the Australian government has this idea that foreign companies should rewrite their website code to account for adding 10% GST. That foreign companies should learn Australian tax law. Even though the ATO lacks jurisdiction.
You can reduce it to the absurdity of an "unlikely" in parentheses, but honestly I don't see much substance in your mixed messages. Why should the government be absurd?
Here's another through, they already do.
Only on the shipping fee, not the actual goods being carried. And only local stuff anyway.
Customs collects GST from the buyer for imports over $1,000.
If you're talking about the proposed 10% import tax that was to come into effect from 1/7/2017 (for low value items), then this tax has been delayed until 1/7/2018.
http://www.abc.net.au/news/2017-06-19/online-shoppers-stung-…
I read this too:
https://www.theguardian.com/australia-news/2017/jun/19/gst-e…
I'm a bit confused though, how come I judt received an email from eBay about the Netflix Tax? Is the tax on eBay still going to start from 1st of July 2017?
My understanding is this….
New 10% GST collection from 1 July 2017 is on Digital goods and services (Eg, stuff you download such as software, music, TV, Movies..etc)
10% GST collection on physical items such as items that you receive via post is only coming into effect 1-July-2018 (Next year), the collection method is yet to be determined for this I believe so it might be freight forwarders collecting this… time will tell!
Essentially you will NOT be effected if you are purchasing a phone (UNLESS it's over AU$1,000 in which case Australian customs will collect the 10% GST as they have done in the past… no change!)
@Gtfantasy and all others…
Found the following link that also confirmed the above details:
https://www.ato.gov.au/business/international-tax-for-busine…
Unchanged
- 10% GST will apply to imported goods over AU$1,000
From 1 July 2017
- 10% GST will apply to cross-border supplies of imported services and digital products sold to Australian consumers
- Whats included: Digital products and services
From 1 July 2018
- 10% GST will apply to imported low value goods.
- This includes all physical goods sold to consumers and imported into Australia that have a value equal to or less than A$1,000.
- These goods are currently exempt from GST
Got an email this morning at 3AM from Alibaba:
Australia GST Tax Notice
Hello,
From 1 July 2018, Australian goods and services tax (GST) 10% will apply to each order valued at A$1,000 or less, and AliExpress is required by law to collect such GST and remit to Australian Taxation Office.
For more information, please visit :
https://www.ato.gov.au/Business/International-tax-for-busine….
Sincerely,
AliExpress.com
But, but, but! Everyone said it was impossible to ask overseas companies to collect this tax!
It will be interesting to see how large the overseas trade is from the GST receipts. Anecdotally, I feel that it will be a lot higher than the current estimates that suggest it is negligible.
This new GST law is ridiculous. I visited eBay AU and wanted to order some cheap parts for my car. I put them in my cart and as I am about to pay, clock strikes 12am, I get at checkout GST $6.69. So from what I understand eBay is paying this GST to the ATO, if that is so, i want a GST receipt and will claim GST, but eBay does not provide tax invoices. Most countries in the world allow people to import goods to a certain price point. In most European countries it is 60 euro. I just checked Kogan, put a phone in my cart and at checkout there is GST to pay. This means good bye to eBay for me. Even though they still might sell products I need cheaper GST inclusive, I won't get over the fact that there is no free of GST threshold and eBay not providing tax receipts. In the name of criminal, let's rip off Australians. It's all about business actually, this government doesn't give 2Cents about consumer rights
Does this mean we can TRS refund stuff bought from overseas? Can someone clarify?
Only if the seller has an ABN and will issue you with an invoice with that and the usual other info, which is unlikely.
https://www.lifehacker.com.au/2017/06/the-netflix-tax-has-be…