Shipito Now Charges GST!

Lmybrains on 01/07/2018 - 11:19
Last edited 01/07/2018 - 11:19

I was just emailed this-

Hi XYZ,

Beginning July 1, 2018, Shipito is required by the Australian government to collect a 10% Goods and Services Tax (GST) on all “low value goods” imported into Australia, with a value of 1,000 AUD or less. GST is calculated based on the value of any items you ship, plus our service charges. As a result, you will now see a charge for GST at mailout.

If you use Shipito for business purposes and wish to submit the GST with your regular tax payments:

1) Visit your Account Preferences page

2) Click “Edit” under each Shipping and Billing address listed

3) Enter your ABN number(s) in the “Tax ID” field(s)

Please visit our FAQ page or contact customer support at [email protected] with any questions.

Kind Regards,

General Discussion Mail Forwarder

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Comments

  • ronorboris on 01/07/2018 - 12:10
    +5

    What a double-whammy with Amazon no longer shipping to Australia :(

  • idjces on 01/07/2018 - 12:27
    +1

    Was likely to happen, but still a PITA they didn't give any forward notice

  • shaybisc on 01/07/2018 - 12:46

    It's Harvey Norman all the way from now on- hip hip hooray- 3 cheers for Australia.

  • lionelhutz on 01/07/2018 - 13:13
    +2

    Goddamn it, that was my workaround. Why would Shipito agree to this? They have no Australian operations, what would the Australian Government do to them if they refused?

    Next plan is to find an alternative shipping service. I do regular business trips to Hong Kong, so maybe just get Amazon to ship there. And I have a US holiday coming up, which now looks like a big shopping trip.

    One thing I won't be doing is shopping at Harvey Norman. Screw that guy.

  • GourmetFoodie on 01/07/2018 - 15:06

    I was shocked. My US sent a similar email. I don't understand how mail forwarders can be forced to collect GST?!

    Safe to say I won't be using either again.

    • Ocker on 01/07/2018 - 15:46
      +4

      That's the whole point - the Australian Government cannot force them to be a tax collector for Australia. Nor can they force the USA Government to impose such a requirement on USA business.

      As I posted elsewhere the whole process is a sham, with more holes in it than the proverbial. The government merely implemented the cheapest possible model with the Australian consumer being the big, big loser, in more ways than one.

      • holdenmg on 01/07/2018 - 19:53
        +5

        I'm just gonna say what we are all thinking.

        The Government is running a protection racket for Harvey Norman.

      • wannagrababargain on 06/07/2018 - 15:27

        The Aust Govt probably has more than one big stick they can wave at shipping forwarders like Shipito without resorting to "forcing" the USA Govt to do anything. For example say if Shipito decided to just ignore the "law", Shipito being a large central operation, means that the Aust Govt could just direct (or threaten to direct) Australian customs to refuse any package arriving to Australia from Shipito until Shipito comply (although would that mean Aust Govt would be in violation of WTO trade rules?)

        • Ocker on 06/07/2018 - 19:07

          Such action by the Australian Government would open a can of worms for retaliatory action by foreign governments - put another way - it aint gonna happen.

    • iSamurai on 01/07/2018 - 17:53
      +2

      so did Tenso in Japan. very disappointed. at least they gave heaps of notice.

      My understanding is this — if you buy from Japan and use a mail forwarder, you pay their 8% sales tax. then you get taxed 10% again for GST. can you claim the 8% back like you'd do with a business for GST credit?

      If you're going overseas can you claim the GST back as TRS, assuming they have an ABN?

  • hogwarts on 01/07/2018 - 15:34
    +7

    I wouldn't be surprised if they just said it was GST and took it for themselves.

    • Ocker on 01/07/2018 - 16:45
      +5

      We would never know, and that is part of the whole reason why the implementation process has been botched.

  • mybrains on 01/07/2018 - 19:31

    Re why would they do this? I figure the customs side of things in Australia would check GST was collected on arrival and possibly reject the delivery?

    • lionelhutz on 01/07/2018 - 20:30
      +2

      So customs will check every $2 parcel to check the 20c GST has been paid? Sounds like a good use of their time.

      • ellave on 02/07/2018 - 09:23

        That's how it works in the UK, although its anything over 20gbp

    • mattythecapybara on 04/07/2018 - 14:37

      The whole point of the seller-collection arrangement was so customs would not have additional burden, so no, I doubt it.

  • haimrevolution on 02/07/2018 - 13:46
    -3

    It’s a company grab at cash. GST is not charged on goods entering Australia under $1000 to begin with. Hell even Australia post has a reshipping service that doesn’t charge

    • mattythecapybara on 04/07/2018 - 14:38

      There is a 0% chance AusPost won't charge.

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