The import tax AGAIN

[LewisM]

OK, I have now purchased 2 items from overseas on eBay post-July 1. At checkout, eBay adds the GST automatically.

Now, I am a dullard - how on Earth is the ATO/Customs now going to know that the tax has been collected if it is being sent by a regular old individual off eBay? Will we need to print off our eBay invoices and show the PO that the tax was paid when collecting? Or is there some magic voodoo that not even Malcolm Turncoat understands?

I understand if the seller prints the eBay invoice off and posts with the item (which means that Customs will need to open and inspect - more man hours), but I can guarantee you 99.9% of regular Mum and Pop sellers WON'T.

[rrussell1962]

Lewis, the way that the legislation is worded does not work like that. eBay is defined as an Electronic Distribution Platform and is therefore deemed to be the seller and responsible for charging GST. The person listing the item is, apparently, not responsible for the GST. Yes, idiotic because different rules apply to items bought under the hammer at auction, but that is how the amendments to the GST Act are worded. As to how parcels are treated when they get here - who knows? My guess is that if the ATO believes they are capturing the big sellers they will let the rest go because the compliance costs will outweigh any added revenue. As long as they get money from eBay every month they will be happy.

[Zuts]

Exactly, ebay just adds 10% to the price and then sends the money to the govt. How they reconcile back to your purchase if someone asks is a complete mystery to me.

On a side note I imported a second hand baader micro guide reticle from OPT. It was purchased after GST went into effect and arrived at my door 5 days later. No-one asked me to pay GST, they just delivered it.

[LewisM]

I'm starting to get the notion that so long as eBay, Amazon etc simply send the Blubbermint collected $$$ every month that no one cares. They can then say to Gerry Hardly-Normal they are doing what was demanded. Keep everyone happy but the consumer.

Last time I checked, 99% of what I import is not available in Australia (hence why I import), so I am not evading any local gouger anyway!

[rrussell1962]

I think you are spot on Lewis with your comments. I also think that the major players in this fiasco are advised by some very smart people who know their onions. Like you, I have a couple of other interests affected by the changes. I retired early from accountancy a few years ago but did have a fair bit to do with cross border transactions. On an abstract level I am very interested to see how this will play out over time.

[PhilTas]

I have just purchased several items (US$47) direct from a Chinese website (gumptrade.com).
I paid with Paypal, no GST was applied at payment.

Will post the results, GST or no GST, when they arrive.
cheers Phil

[Marke]

I just bought a focuser from FLo in the UK and wasnt charged any thing extra

[Exfso]

I just paid for some software which was an instant download, in the price was the Get Stuffed Tax.:D

[Nikolas]

FLO don't do 75k worth of transactions to Australia a year I reckon

[Wavytone]

Well, I've ordered 7 things this month, 3 from Germany and 4 from the good'ol' boys in the US of A.

The yanks decided they can't be bothered doing business with Oz, however I paid via PayPal and have a US delivery address and forwarder (wink, wink, nudge, nudge) so all good.

The Germans, good citizens that they are, simply took the order. Methinks OzPost will bill me when it arrives. This item matters the most, as I'm having new backend machined to mate a new focuser to this scope. FYI the Germans also have a GST for inbound products and they nearly had a heart attack when i suggested sending my current backend to them - they said I'd be charged a whopping GST for that. But products made in Germany and exported are GST-free.

Very logical, these germans... except when it comes to delivery... they really need to ditch DHL and find a courier that works as well as FedEx.

[Marke]

Ok so has to be over that amount to Aus then .

[multiweb]

I'd say eBay passes the transaction ref electronically to the ATO at the time it charges the GST in the back end.

[LewisM]

I understand that Marc but how does import/customs recognize the package as gst compliant if the seller does not attach an invoice or use eBay postage? They can’t possibly know.

Just another Bermuda Triangle originating in Canberra

[multiweb]

Ultimately it's not the customs problem. If the ATO knows they're usually quite happy to sit on it and fine you later down the road if you didn't comply. Makes sense from a cost point of view that the customs won't bother checking. Doesn't matter. You get caught down the pipe anyway.

[dpastern]

EXACTLY. This is a rant I had with my best mate on hangouts a few days ago...



Most people buying online are either doing so because said item is NOT available from local resellers, or is so vastly over-priced as to be in rip off territory.

Again, why is our government so keen to protect these dinosaur businesses and screw Australian constituents over? Why is the media not asking these hard questions? Oh wait, the ABC does, but the government silences them by dramatically cutting their funding. I think that about sums up the corrupt LNP government that supposedly governs this country at the moment.

[Sparksinspace]

I thought that GST would be charged on import of item and that it would be charged when it landed in Australia and would not be released from customs until it was paid? is this not the case?

[dpastern]

AFAIK, sellers are meant to incorporate the GST into their checkout price when said buyer goes to buy. But, only if they sell more than 75k worth of goods to Australians p.a. How the Australian government is going to check that I don't now lol. I suspect many overseas sellers/companies will simply refuse to ship to Australia under any circumstances (most American EBayers will NOT ship to Australia, I base this on personal experiences over the past 15 years with EBay and hundreds of purchases.

This imposed GST will be another death knell to the few companies who do ship to Australia imho.

This imposed GST does not serve the Australian constituents in any way, shape or form. The Australian government would have been far better ensuring that businesses, especially the large corporate tax dodgers like Apple Computers, actually pay the appropriate taxes and contribute to Australian society. But nah, that's too much work and plus, or "big brother", the US of A would heavily frown upon us "attacking" US business interests.

[JA]

Couldn't agree more

Best
JA

[dpastern]

The whole idea of a taxation system is to ensure that *everyone* contributs back to society. Without a cohesive society, businesses would NOT succeed. It's a symbiotic relationship. Companies that take advantage of what a civilised society offers in terms of business income, but don't want to contribute back to society disgust me. They are lower than snakes.

For far too long, successive governments have pandered to these mega rich corporations (typically US owned and based companies I might add), whilst the rest of Australia (typically the poorest of the nation) prop up our government and social spending. Is that fair?

We've already seen Trump in the US introduce new laws that will effectively mean that large companies will pay ZERO tax from 2022 and taxes to the ordinary people will be increased to compensate for this. That's CRIMINAL in my eyes. The sad thing is, the majority of society didn't even blink at that. People have grown too stupid, and too lazy. The few who are outspoken and vocal are labelled whingers and troublemakers.

The current fiscal system is not sustainable. it never was. The edges are already fraying. I question why the US government spent like 3 trillion dollars bailing out banks in the banking collapse? Shouldn't those banks be held accountable for their screw-ups and the bank owners be forced to pay from their personal wealth? I mean, if I have a mortgage with a bank and continuously squander my income on drugs, alcohol and prostitutes and don't pay my mortgage, would the government bail me out? I bet they wouldn't. it's called responsibility. These banks were irresponsible and they expect the greater society to bail them out? The buggers should have bloody well been lined up and shot at dawn and their personal wealth confiscated.

[LewisM]

Well the first eBay item arrived today. No indication of any inspection etc. Came from China, relabeled by AusPost here after coming in UBI. I noted in tracking AusPost cleared it for receipt before it was uplifted in Hong Kong so I assume that may be when the GST clearance - if any - was made

[dpastern]

Well, I had 2 items (2nd hand books bought in the US) waiting at my US proxy postal address, and my time for free storage was running out, so I had to ship them. comgateway is charging GST at checkout :-/

What makes me cranky is that our Australian government has the audacity to tell foreign companies what they can and cannot do. Foreign companies should be giving the Australian government the finger and forcing our government to hold items via customs inspections (thus wasting Australian taxpayers money and making the idea of extorting GST worth less than the expenditure to collect it). and yes, this is nothing but extortion on the Australian governments part.

[mynameiscd]

Well said ...:thumbsup:
But maybe "shot at dawn" is a bit harsh.
What about a public flogging? ...or at least a "jolly good thrashing"
Cheers
Andy

[dpastern]

Yeah, a good flogging (I'm actually against the death penalty, it's morally offensive).

[Kunama]

I'm glad the IIS TOS states that discussion on politics is to be avoided.....