GST on imported goods

Discussion in 'Buying and selling help' started by peter915, Jan 9, 2018.

  1. peter915

    peter915 Active Member

    Messages:
    629
    Location:
    Sunshine coast
    Hi all,
    Anyone thinking of making a overseas purchase like parts, etc, be aware that as of 1st July this year, all purchases above or below the $1000 Mark will attract GST.
    For now till then, any purchases under $1K are tax free.
    Article below (link) covers the basics
    http://www.ebay.com.au/gds/The-A-Z-...ia-Duty-GST-Customs-/10000000015634691/g.html
    ATO Notice
    https://www.ato.gov.au/General/New-...ct-taxes/GST/GST-on-low-value-imported-goods/

    So it could pay to look at anything you might need.
     
    David H likes this.
  2. 77/kombi/surfer

    77/kombi/surfer Well-Known Member

    Messages:
    1,662
    Location:
    Budgewoi N.S.W. AUSTRALIA
    Thanks for that,
    just noticed on my tax form saying anything you sell online will have to be added lnto your income and taxed accordingly.
    So does that mean when i sell my splitcreen for $100,000 ive got to add $10k onto top of the sale hand to the government so im not out of pocket?
     
  3. peter915

    peter915 Active Member

    Messages:
    629
    Location:
    Sunshine coast
    Nah, it's only on imported goods.
    Your kombi doesn't attract any tax as a private individual.
     
  4. wirrah

    wirrah Well-Known Member

    Messages:
    1,709
    Location:
    Lower Hunter, NSW
    Not GST but, technically, CGT.
     
  5. David H

    David H Well-Known Member

    Messages:
    2,908
    Location:
    newcastle
    Personal goods & chattels exempt as is family home & any income from a hobby. I think o_O? No tax expert here!
    Cheers
     
  6. wirrah

    wirrah Well-Known Member

    Messages:
    1,709
    Location:
    Lower Hunter, NSW
    Your car is exempt from CGT but it's like the family home. It's exempt too but an investment property is not. 9 seater microbuses are not exempt at all :(! There are $ limits as well. Personal use items costing more than $10000 can attract CGT on sale.

    I know... It's sad...

    https://www.ato.gov.au/general/capital-gains-tax/cgt-assets-and-exemptions/

    Regarding the GST...

    Reading the rules I suspect (I'm guessing) that the likes of ebay, as a service provider, will need to start collecting GST on imported sales.
     
  7. 77/kombi/surfer

    77/kombi/surfer Well-Known Member

    Messages:
    1,662
    Location:
    Budgewoi N.S.W. AUSTRALIA
    Thanks Greg,
    So ebay fees will go up now to cover gst collection id say more than likley.
    And why does a 9 seater bus not exempt? Then to sell it Id let the rego expire an rerego as a 6 seat , then the new buyer of the car can put back in the rear seat an get it engineered as a 9 seater again. To get around this red tape.
     
  8. wirrah

    wirrah Well-Known Member

    Messages:
    1,709
    Location:
    Lower Hunter, NSW
    You’ll have to ask the ATO. Governments have often made that distinction. I had to remove the front middle seat in my ‘72 to avoid paying extortionate rego back in 1980
     
  9. peter915

    peter915 Active Member

    Messages:
    629
    Location:
    Sunshine coast
    Seems this thread has lost it's way ?
    I posted the original comment with regards to purchases made OS from here in Oz.
    If you buy a car part from the states right now, worth say $999.00 AU you won't pay any GST or duty, etc.
    As of the 1st of July this year - the same purchase with attract GST.
    Not sure about import Duty - this applies to goods currently over the $1 K value (AU dollars) - Import duty is often around the 5% mark
    GST is then applied to the final total - this includes all duties, freight cost and insurances - add these up and then apply the GST. This is calculated on the final total - not, - not the cost of the goods.
     
  10. wirrah

    wirrah Well-Known Member

    Messages:
    1,709
    Location:
    Lower Hunter, NSW
    Tends to happen sometimes.

    On reading the regulations this only applies to businesses turning over more than $75k in Australian sales. And it also impacts "providers" with a "relationship" to Australia. So Ebay, Amazon and the like will need to collect and remit GST (not the seller). So called Electronic Distribution Platforms (EDP - when I started in computers to meant Electronic Data Processing!!!)

    Items > $1000 will still hit at the "border" and not by the seller. This remains unchanged. And I've done the trip to Granville before myself.

    What I cannot comprehend is how a business that does not have a connection or relationship to Australia (e.g. Gowesty/Van Cafe/Kieft & Klok etc... etc...) fit in if they happen to sell more than $75k worth into Australia.

    This paragraph is confusing

    "This applies regardless of whether you are a merchant that is based in Australia or overseas. This means that if you are an Australian business that sells goods that are sourced from outside Australia and imported directly by consumers, you may need to charge GST under the new law."

    The is confusing. Does it mean an Australian business based overseas?

    The example of the Chinese merchant... Can you really imagine collecting for and remitting tax to a foreign government? I don't know how that would work unless the foreign merchant has some sort of local set up of course.

    <shrug>

    So some tax guru out there may be able to comment.

    It will be interesting to see how this works.
     
  11. Andy.

    Andy. Active Member

    Messages:
    397
    Location:
    Brisbane

    The way I read this the seller needs to pay GST, not the consumer??? This would mean a lot of vendors could potentially not want to deal with Australia as they are now liable to pay GST on goods sold to consumers here.
    Vendors that still chose to deal with Australia would obviously charge a higher price to cover those costs, which I assume will be a lot more than 10%GST
     
  12. Luckyphil

    Luckyphil Well-Known Member

    Messages:
    5,422
    Location:
    Gosford
    Better mortgage the house now to save later, makes sense to me :)
    Not sure if it will be that clear to my wife though.
     
  13. wirrah

    wirrah Well-Known Member

    Messages:
    1,709
    Location:
    Lower Hunter, NSW
    Not really. The seller needs to "charge" gst on the sale, just as it's done locally. The GST is collected from the consumer and then remitted by the seller to big brother. The difference here is that the "seller" can also be a service provider, such as ebay, which will need to collect GST on the sale of any <= $1000 from a foreign supplier. In the case of ebay and the likes this will allow the guvm't to collect GST on every bit of flotsam and jetsam coming in from all round the world through these channels. I'm sure that's what they are really aiming at. The seller won't be involved at all - unless it's an Australian business based overseas or importing (but see my previous post).

    If you buy a Leica replica on Ebay from the Ukraine for $500 shipped then Ebay will take an extra $50 from you and send it to Canberra. The seller won't know anything about it.

    Like I said it will be interesting to see how this works.

    :)
     
    David H likes this.
  14. Andy.

    Andy. Active Member

    Messages:
    397
    Location:
    Brisbane
    Yes, will be interesting to understand how it works better. I had though in your scenario Ebay pays GST on the service (10% of their bill to the seller). Your example works for Ebay, but what about items you purchase direct from an over seas business.
    I understand the good side which is a level playing field for local businesses, but if Mr tax man generates more revenue out of it, where's our tax cut?
     
  15. cbus

    cbus Well-Known Member

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    10,664
    Location:
    sunshine coast
    You jest of course ? :D
     
  16. David H

    David H Well-Known Member

    Messages:
    2,908
    Location:
    newcastle
    Won't;). Italians make rules for rogues & all get around them. Britain makes rules for gentlemen & some get around them.
    The international rule is that none can cover 'all bases' to ensure compliance. Watch the crazy world we are now entering:p.
    Want to buy a 'bit coin' or another version of same?

    Where's the GST on that...or CGT? when sold?

    Cheers
    Not really. Had a great day but this is a bit:(.
     
  17. Blunderbus

    Blunderbus Active Member

    Messages:
    542
    Location:
    St Helena, Melbourne .
    The collection issue is why they delayed it to July instead of starting 1st of Jan this year, i work in imports doing customs entries and the industry still doesnt know how this is going to work.
    We can all thank mr Kogan and Gerry Harvey for this.
     
    David H likes this.

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