New GST Law Questions

drspy00 on 07/07/2018 - 02:19
Last edited 08/07/2018 - 15:45 by 1 other user

I have some questions regarding the new GST rules for overseas items. I am surprised this is not more prominent in the media, I did know it was happening but not how it was happening.

Does the GST affect all sites? like less known Chinese sites?

Do they really check every $1 item that arrives from China to see if GST has been paid? Will it be worth the resources?

I am so surprised it is even for $1 items, and antiques! My Mum often bought antiques and has now seen $200 added to the price on checkout which is a deal breaker in most cases.

If we are being charged tax, will we be able to get TRS on exiting the country for items over $300 from overseas like local items?

How will this affect the many Chinese based sellers who sell from China but claim they are local? Will they be hit with a purchase, or us for importing from China even though it was sold as locally?

• 

  chumlee on 07/07/2018 - 07:30

  It's the sellers responsible to collect and forward GST to the ATO.

  Don't get your knickers in a knot over it

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    JimmyF on 07/07/2018 - 10:40

    ebay now adds it for all items outside of Australia at checkout.

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  2jzzzz on 07/07/2018 - 07:42

  You won't get a tax invoice which is eligible as they prob won't have an ABN on it. The whole idea of TRS is to get you to buy local.

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    JimmyF on 07/07/2018 - 10:40

    Picks item at random,

    ok $40 locally + $10 shipping…… including GST

    or

    $8 from China including shipping, then GASP 80c GST added at checkout.

    The whole idea of TRS is to get you to buy local.

    Yeah not really going to change much

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  Quantumcat on 07/07/2018 - 08:45

  I don't understand how they can force overseas sellers to do anything.

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    Amaris on 07/07/2018 - 09:30

    They, I think, plan to force them by threatening them using bilateral tax treaties. However, if the seller is small and has Australian sales of less than $75000 they are not required to collect GST and send it to the ATO.

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    Butt Scratcher on 08/07/2018 - 22:04

    I'm sorta wondering this too.

    I've never thought of how, which is why I'm really surprised at how many chinese websites decided to jump on board with it.

    • 

      Quantumcat on 09/07/2018 - 07:11

      Yeah, it's not like overseas businesses have to submit tax returns to the government - there's no way they can make sure the GST is passed on. And if it isn't, then it is going to cost the government more than they get when businesses here start claiming the GST they paid, back.

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  JimmyF on 07/07/2018 - 10:38

  -2

  My Mum often bought antiques and has now seen $200 added to the price on checkout which is a deal breaker in most cases.

  So your mum bought $2000 worth of antiques and now the $200 GST is a show stopper?

  Hmmm ok

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    drspy00 on 07/07/2018 - 15:42

    Usually under $1000 but some of the sellers are charging things differently, and more expensive post due to this. Some program ebay has started aswell.

    • 

      JimmyF on 07/07/2018 - 15:56

      The laws changed,7 days ago. GST is to be collected on ALL items sold overseas, regardless of the value.

      Its why ebay is adding 10% GST to sales at checkout.

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  kunimitsu on 07/07/2018 - 11:18

  Does anyone know what happen if a low value good comes into australia? Does it get GST in australia or nothing happen to it and pass custom?
  I've read from the ATO site specifying saying GST gets collected at point of sales from oversea vendor.
  E.G. If purchase item oversea, low value goods and vendor didnt put GST on it will I get charged when it gets to Australia???
  From what i read it wont but wanted a clarification also does it matter what Courier company oversea uses? For example if they use DHL and they have their own special clearance agent. Will they charge the GST?

  Help appreciated
  Thanks

  • 

    Chickenleg on 07/07/2018 - 21:00

    +1

    I would say no, because 1, it’s not custom’s duty to check that GST has been applied for every single thing, and 2, they would have no idea if it came from a company that made more than 75k a year or not unless they went to the trouble of opening the package and trying to see if it came with an invoice, then looking up the business

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  Cheap Charlie on 07/07/2018 - 13:06

  I once knew a bloke that bought a goat for a case of beer…

  • 

    Nick939 on 07/07/2018 - 13:33

    Was the goat’s name Gary?

    • 

      Cheap Charlie on 07/07/2018 - 13:38

      +1

      Was being the operative word

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  drspy00 on 07/07/2018 - 15:46

  My main question was does it affect all purchases, even $1 ones from less known sites? and will the items be checked on entry into Australia to check the 10c duty has been paid? I mean very low cost things, or is this something only major sites like ebay are implementing because theyve been pressured?

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  pegaxs on 07/07/2018 - 20:54

  +3

  I have already receive 3 parcels this week from Chinese sellers who have marked the parcels as “NOT for sale. Return customer item” written on the package. Another one was marked “Warranty return. No sale”

  I can see a lot more of that happening now the Gerry Tax has come in. A lot of these websites won’t give a rats ringbit about collecting GST. And even if they do, it’s only to line their own pockets. I doubt they will forward it onto the Aust. government…

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  drspy00 on 08/07/2018 - 17:44

  So are they going to open packages to check the values like they do in the UK?

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  rartelif on 09/07/2018 - 09:28

  Was plan to purchase something on IWOOT web, obviously they would be sent from UK, however when I proceed to payment, it stated GST included and seems like they have a OZ Company. When I placed the order and got the proof of purchase, there is no tax involved, so I canceled the order. I am still confused if the total price I paid for including GST? How can I prove it’s included by just sending a screenshot?

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  ashleyisa on 15/08/2018 - 17:30

  Just saw on my cc statement for a whole bunch of 9 things I bought and was slammed with GST. It's automatically charged thru my PayPal. Is that the same if I use credit card instead?

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  bwatt72 on 13/11/2018 - 21:27

  Anyone know whats happening with gst i get regular items sent from overseas yet not charged any gst.
  But if you order through ebay and certain sites they charge the gst up front.
  Yet smaller companies don't.
  So what happens if i send stuff from overseas to myself and i book and pay from here using the overseas site and having family organize the package pack etc ready.
  How does gst work there?
  As i yet to be charged anything on gst only if ebay and the likes.
  If they are expecting companies to do this for them or they not set up or cant be bothered then passes through.
  If so does it still go as the $1000 before changes made im confused.
  And if its the $1000 as before does this include shipping do they add shipping on value?
  So you pay gst on both shipping and value of goods if under $1000 or just gst on value of items if they are under a $1000.
  I believe you pay gst on shipping and value if over $1000.

  But are they set up for claiming gst on anything smaller than the new gst as numerous people i know dont get charged and i have not either.