Buying from US Ebay sellers. GST issue

[sven365]

Has anyone encountered this? Something I am looking at is going to cost me an extra 10% in GST which on top of postage makes it undoable.

Is there any way round this that people know of?

[Daves]

Has anyone encountered this? Something I am looking at is going to cost me an extra 10% in GST which on top of postage makes it undoable.

Is there any way round this that people know of?

Has been the case since 1/7/2018, Thank Gerry Harvey for all his whining about it. I suppose you could set up an account with a Freight Forwarder, buy in the US and then get it re-shipped to you. But I would think you are technically still liable for it, and I suspect the Freight Forwarders have a legal obligation with it as well. If Customs decide to pursue you, you could possibly face penalties on top of the tax.

[olddogmike]

I thought that only applies to new items, could be wrong though.

[Daves]

I thought that only applies to new items, could be wrong though.

I am pretty sure it applies to both new and used, there is no distinction that I am aware of. eBay certainly applies it that way.

Of course GST has always applied, but there used to be an exemption for total purchases less than $1,000 including freight.

[3Puttpete]

Who collects the GST?

[Daves]

Who collects the GST?

The seller, as I understand it, or the selling platform they use e.g. eBay does it for its sellers. Unless the Buyer is registered for GST, then there is a different process I believe.

[sven365]

I am pretty sure it applies to both new and used, there is no distinction that I am aware of. eBay certainly applies it that way.

Of course GST has always applied, but there used to be an exemption for total purchases less than $1,000 including freight.

Does Ebay just apply it? Any way round it? If I buy it from the guy off of eBay as an example and ask he sends to me as a gift?

[3Puttpete]

The seller, as I understand it, or the selling platform they use e.g. eBay does it for its sellers. Unless the Buyer is registered for GST, then there is a different process I believe.

Interesting

[Daves]

Does Ebay just apply it? Any way round it? If I buy it from the guy off of eBay as an example and ask he sends to me as a gift?

You could try, but it is Tax Evasion, so is it really worth that risk?

[Daves]

https://www.ato.gov.au/business/larg...means-for-you/

[benno_r]

Does Ebay just apply it? Any way round it? If I buy it from the guy off of eBay as an example and ask he sends to me as a gift?

As soon as you select Australia, the gst will be applied, and collected, by eBay.

You can get a us freight forwarding address, but most freight forwarders also charge the gst as well.

[sven365]

You could try, but it is Tax Evasion, so is it really worth that risk?

No obviously not, just want sure what the options were really.

[sven365]

As soon as you select Australia, the gst will be applied, and collected, by eBay.

You can get a us freight forwarding address, but most freight forwarders also charge the gst as well.

Cool - thanks

[sven365]

https://www.ato.gov.au/business/larg...means-for-you/

Interesting. buying on eBay is surely different though, isn't it? I mean you are buying from someone rather than a business?

Obviously not looking to take the ATO on, on this one, but it is a thought..

[3Puttpete]

Interesting. buying on eBay is surely different though, isn't it? I mean you are buying from someone rather than a business?

Obviously not looking to take the ATO on, on this one, but it is a thought..

I thought the same. I reckon the fact eBay isn’t involved in the transaction has been Long-established and I’m not sure what the ATO could/would about a golf shop in Texas not charging and remitting GST.

Having said that, they must have some pretty tight legislation for eBay to think they have to do it.

[thecollective]

Has been the case since 1/7/2018, Thank Gerry Harvey for all his whining about it. I suppose you could set up an account with a Freight Forwarder, buy in the US and then get it re-shipped to you. But I would think you are technically still liable for it, and I suspect the Freight Forwarders have a legal obligation with it as well. If Customs decide to pursue you, you could possibly face penalties on top of the tax.

If you do the above your item will be stuck at Australian customs until the freight forwarder can show evidence of the GST payment, you won't get around it

[benno_r]

Has been the case since 1/7/2018, Thank Gerry Harvey for all his whining about it. I suppose you could set up an account with a Freight Forwarder, buy in the US and then get it re-shipped to you. But I would think you are technically still liable for it, and I suspect the Freight Forwarders have a legal obligation with it as well. If Customs decide to pursue you, you could possibly face penalties on top of the tax.

You have to remember that overseas businesses doing less than $75k trade with Australia don't need to register to collect GST. It means that if your goods come from a non registered supplier, are below the $1000 threshold, there will be no obligation for you to pay it, and customs won't hold it up and chase you for it.

There has been no info I have yet seen that Customs have any interest, or plans, to collect the GST at the border for items below $1000.

[3oneday]

There’s no gst on an overseas gift. What would happen if you bought off golfwrx? It’s a private transaction.

My son has been buying soccer gear overseas and no gst has applied to date, no holdup at import either.

[Daves]

Interesting. buying on eBay is surely different though, isn't it? I mean you are buying from someone rather than a business?

Obviously not looking to take the ATO on, on this one, but it is a thought..

I thought the same. I reckon the fact eBay isn’t involved in the transaction has been Long-established and I’m not sure what the ATO could/would about a golf shop in Texas not charging and remitting GST.

Having said that, they must have some pretty tight legislation for eBay to think they have to do it.

You have to remember that overseas businesses doing less than $75k trade with Australia don't need to register to collect GST. It means that if your goods come from a non registered supplier, are below the $1000 threshold, there will be no obligation for you to pay it, and customs won't hold it up and chase you for it.

There has been no info I have yet seen that Customs have any interest, or plans, to collect the GST at the border for items below $1000.

It does appear that the under $1000 GST collection is catching transactions that are not normally GST taxed in Oz e.g. private individuals selling 2nd hand goods on eBay, Gumtree, local Classified etc vs "forced" collection on platforms like eBay. I presume Amazon temporarily withdrew from selling into Oz because of it? Though more because they did not have the IT right than any protest about it.

Private transactions such as buying off WRX probably won't see the issue arise, as mentioned. You would be unlucky if Border Security intercepted such packages and even more unlucky if they decided to pursue you. I don't know that they have the authority in such transactions, and they would have much higher priorities in any case. The OP was specifically about US eBay though, so I can't see how you can beat the system unless you somehow go off line.

I have had GST applied to OZ eBay transactions where the seller is a "Re-Deliverer" under the legislation i.e. the Seller is Oz based but the item actually ships from OS.

[benno_r]

There’s no gst on an overseas gift. What would happen if you bought off golfwrx? It’s a private transaction.

My son has been buying soccer gear overseas and no gst has applied to date, no holdup at import either.

No dramas if you buy off Golfwrx as the seller is unlikely to meet the $75k sales to Aus/yr requirement.

I am not so sure there is no GST on an overseas gift. The item still has a taxable value, even if it cost you nothing.

[TheNuclearOne]

The good old ebay GST has certainly had a big effect on hoeing. Less being bought from over there leading to higher prices and less availability here for starters particularly given our dollar is down. When it was good it was great.

[aussieashley]

How good were the days of USD$1=AUD$1

[TheNuclearOne]

Very.

[3oneday]

I am not so sure there is no GST on an overseas gift. The item still has a taxable value, even if it cost you nothing.

Ok cool, best not say anything if you’re not sure

[benno_r]

Ok cool, best not say anything if you’re not sure

Well, I got charged GST on an item my Sister sent me for nix as a gift via my freight forwarder.... So while I got charged, I am not sure of the wording of the legislation. If she sent it direct, no GST would apply.

Better?