Nike AU Not Charging GST?

Azn310 on 30/05/2019 - 02:54
Last edited 30/05/2019 - 10:08 by 1 other user

I’ve purchased some items off the Nike AU website. Order came from overseas, very fast delivery, great.

I plan to bring it as gifts for friends overseas. And I thought about claiming GST at the airport. GST worth about 50 bucks.

But then, no tax invoice to be found anywhere.. I chat with the assistant on their website and they rocked up with an invoice that says 0 duty & tax AUD.

I thought all low value item imported into Australia is subject to GST? Is this legal?

I’m not really complaining about not being able to claim tax at the airport. Just very curious how Nike is able to avoid this GST, maybe it was paid in some other country? Or maybe they create new company as soon as one reaches $75,000 threshold?

I notice on the box, the items has been in Belgium, Netherlands, UK before coming to a company in Australia. Item was made in China.

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Comments

  • whooah1979 on 30/05/2019 - 06:18

    Is this legal?

    Yes, it is.

  • whooah1979 on 30/05/2019 - 06:21
    +1

    Just very curious how Nike is able to avoid this GST,

    GST is paid by the consumer. Item may have cost more if you did pay the GST.

    • Azn310 on 30/05/2019 - 12:19
      +1

      I also use cashrewards. And my rewards seems to be calculated with GST in the picture.

      Say item I purchased was $350. Cashrewards say item was $318.xx and calculated the percentage off that.

      Also when they send the invoice, no company name, no ABN

  • DJR9000 on 30/05/2019 - 10:05
    +2

    so they made a big hoo-ha about GST on low value imports

    turns out quite a lot of online stores arent paying it

    so much for a level playing field

    • Azn310 on 30/05/2019 - 12:54

      Exactly what I was thinking. Gov’t is good at bullying the local online businesses and importers

  • pjetson on 30/05/2019 - 10:11
    +3

    My understanding about the GST on imports under $1000 from an overseas company is that the GST is voluntarily collected by the seller. That is, the overseas seller is under no legal obligation to collect GST and then remit it to the ATO.

    I think it's just the threat of what the ATO and Australian government might do that makes an overseas company collect and remit the GST.

    • Clear on 30/05/2019 - 11:33
      +1

      You're correct. Quite hard to get an overseas company to pay GST.

  • p1 ama on 30/05/2019 - 10:20
    +1

    Just very curious how Nike is able to avoid this GST

    GST is paid by the consumer, collected by the retailer. So you are avoiding GST, not Nike.

    • Azn310 on 30/05/2019 - 16:15

      Collected by the retailer, who has already paid the GST to their supplier or ultimately the government?

      As an Australian, I have no power to avoid GST. When I made the purchase, Nike said this: https://www.nike.com/au/help/a/sales-tax-gs

      "Yes, any applicable duties or taxes are included in your order total at checkout. We sweat the details, so your only worry is what you're going to do in your new sneakers or gear. We calculate duties and taxes according to the laws governing the delivery address—we don't accept tax-exempt orders."

      Besides, I am a business owner and have been collecting and paying GST, and receiving unfair disadvantage from this GST Law. And the pain and cost of reporting GST every quarter..

      Maybe it is about time I move the business overseas to stop paying GST, reduce company tax to the minimum and also avoid paying a single cent of income tax all from the money my company receive from Australian people. That sounds pretty good, doesn't it?

      • p1 ama on 31/05/2019 - 21:41

        Maybe it is about time I move the business overseas to stop paying GST, reduce company tax to the minimum and also avoid paying a single cent of income tax all from the money my company receive from Australian people. That sounds pretty good, doesn't it?

        Go ahead. If you want to continue living in AU from your business earnings, you'll have to repatriate them at your personal tax rate anyway.

  • Seraphin7 on 30/05/2019 - 11:34
    +5

    Advise the relevant authorities at the airport and you can pay the GST to them.

    • toasty on 30/05/2019 - 14:12
      +1

      Can probably pay the GST and claim the refund from the TRS desk all in one visit. They’re always in such a great mood that I’m sure they would love to help out.

  • flinty7s on 04/09/2019 - 16:44

    I stumbled on this thread as I'm in the same situation (was looking to claim the GST on my recent Nike order at the airport when travelling overseas soon). Yes, no sign of any GST being paid in the mail trail/order history.

    I probably wouldn't have minded if the items were cheaper, but they're priced and charged in AUD at the same price as the RRP here (e.g. same shoes for the same price at footlocker.com.au, which specifies GST included). So it seems like Nike "charge" the GST but then pocket it themselves. Comes off as a bit shady.

  • Gelato on 04/09/2019 - 21:22

    i got the same situation when i shopped from them too.
    instead of asking why i was not charged GST, i was rather pissed about the 3% credit card foreign currency charge. i did not notice it was sold from a foreign entity

  • icanfly on 22/12/2022 - 22:01

    I too just came across this can't claim GST at the airport as I didn't pay it

    I too thought they had to charge GST and also as someone else said they are charging the same as you pay in AU stores which includes GST so yeah does sound dodgy

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