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Thread: New GST Rules

  1. #1
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    Default New GST Rules

    Just wondering if anyone has ordered anything from OS yet and how did you get on with the GST.
    Shane

    Got the square peg in the round hole, now can't get it out !!

  2. #2
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    Quote Originally Posted by Auskart View Post
    Just wondering if anyone has ordered anything from OS yet and how did you get on with the GST.
    Ebay and Aliexpress tack it on at the check out

  3. #3
    BobL is offline Member: Blue and white apron brigade
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    Quote Originally Posted by shedhappens View Post
    Ebay and Aliexpress tack it on at the check out
    Theres not really a tacking on to the payment for the item.
    What ebay has done is create a completely independent Payment = to 10% of the item but is does not show up on your invoice for that item as GST - its a payment to Ebay Australia, not to the ATO.
    Only by going into your PayPal account and looking at the details for the payment to Ebay Australia will you see the mention of GST.
    I could not find any link between the payment for the Item and the payment to Ebay Australia for a GST.

    I think the ATO does not give a rats about all this and is just hoping to rake up what money it can.
    The ATO has been given a paltry $15 million over 3 years to attend to this and hopes to recover just $75 million a year of the prospective total $450 million it does not collect from OS purchases. 17% recovery is all they hope to get and even then they will be lucky to get that.

  4. #4
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    If your an average punter, you will pay the 10%, even if it is only 27c.

  5. #5
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    This has been done to death thrice over on Woodwork Forums - July the 1st 2018 GST On Low Value Imported Goods

    I still think that the following is the best answer, i.e. to refer to the government's own wording:

    https://www.homeaffairs.gov.au/trav/impo/buyi

    Buying over the internet

    Things you buy over the internet will have the same rules, duties and screening processes applied as any other import.
    You need to know that:


    • For goods with a value of AUD1000 or less, there are no duties, taxes or charges to pay at the border.
      • From 1 July 2018, the Goods and Services Tax (GST) may apply to low value goods when imported from overseas by consumers in Australia. However, the GST will be charged at the point of sale and not at the border.

    • For goods with a value over AUD1000, you will need to fill out an Import Declaration, and pay duties, taxes and charges at the border.
    • You will need to pay duties and taxes on some goods (like tobacco or alcohol) regardless of their value
    • Certain types of goods are not allowed to be brought into Australia, or else need special permits.



    What can I import?

    Goods with a value of AUD1000 or less

    Goods with a value of over AUD1000

    Before you buy online

    Gas and electrical goods

    Pirated and counterfeit goods





    In the various linked pages, here's another one of general interest:

    https://www.homeaffairs.gov.au/busi/...and-taxes/low-

    GST on low value imported goods

    From 1 July 2018, goods with a customs value of AUD1000 or less (low value goods) may attract the Goods and Services Tax (GST) at the point of sale if imported from overseas by consumers in Australia.
    There will be no changes to:


    • the AUD1000 threshold for reporting and collection of duties and taxes at the border
    • border clearance processes
    • the flow of goods across borders
    • current import requirements for tobacco, tobacco products or alcoholic beverages.


    Businesses with sales (subject to Australian GST) of AUD75000 or more to consumers in Australia within a 12 month period, will need to register with the Australian Taxation Office (ATO), collect GST at the point of sale and remit that GST to the ATO.
    This includes businesses that are:


    • merchants who sell goods to consumers
    • electronic distribution platform operators
    • re-deliverers


    There are rules that determine which businesses will need to register for, and charge GST. Further information onGST registration for non-residents of Australia is available from the ATO website.
    The ATO is communicating, educating and assisting affected businesses to comply with the measure and ensuring specific information is available for transporters and customs brokers; consumers; and businesses all of which may be impacted by these changes.
    Further information about GST on low value goods is available on the ATO website and also available in Chinese.


    Changes to the ICS

    GST-paid exemption code

    GST refunds

    Inquiry into collection models for GST on low value imported goods

    Low Value Import Threshold Taskforce



  6. #6
    BobL is offline Member: Blue and white apron brigade
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    Quote Originally Posted by Gunnaduit View Post
    This has been done to death thrice over on Woodwork Forums - July the 1st 2018 GST On Low Value Imported Goods
    Far from dead from what I can see.
    Those threads started out as a lot of speculation trying to interpret what the ATO was up to and it's still going strong especially as real/actual experiences start to show up.
    We still don't even know which sellers have officially signed up or not.

  7. #7
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    Norman is going to make sure the recovery of GST for OS goods succeeds...even it kills him.
    He has been the biggest complainer about this and as fsr as i am concerned has been barking up the wrong tree to get assistance to prop up his franchises.

  8. #8
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    I bought a couple of solid carbide end mills on Aliexpress in early July.
    The 10% GST was shown on the invoice.

  9. #9
    BobL is offline Member: Blue and white apron brigade
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    Quote Originally Posted by eskimo View Post
    Norman is going to make sure the recovery of GST for OS goods succeeds...even it kills him.
    He has been the biggest complainer about this and as fsr as i am concerned has been barking up the wrong tree to get assistance to prop up his franchises.
    I wouldn't call the planned 17% of the possible GST recovery rate much of a success
    a) its only planned so they won't even get that
    b) its bordering on nuisance value and it will drive consumers away from his stores
    c( it simply won't put most people of purchasing from OS sources - the cat's too far out of the bag

  10. #10
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    Even adding 10% on some things, the free post and handle, comparible delivery times and home shopping availability, makes O/s purchase still a very viable option. Items are still far cheaper, although the quality can be, but isn't always, lower. Australian supply just isn't always competitive and is often unnecessarily expensive. Australian Amazon is a joke.

  11. #11
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    Since most of my US purchases come home via Shinto, I will be interested in how my first purhase goes since this has come in. I did get an email from Shipto stating that they would start adding on the GST. But, I think it will rely on self reporting of the purchase price, similar to when you fill out the customs declaration or add on insurance. So, if that's the case then it relies on the "honesty system" I don't really think they give a rats as to whether the true GST is paid or if the purchaser just adds a tribute amount.

    Simon
    Girl, I don't wanna know about your mild-mannered alter ego or anything like that." I mean, you tell me you're, uh, super-mega-ultra-lightning babe? That's all right with me. I'm good. I'm good.

  12. #12
    BobL is offline Member: Blue and white apron brigade
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    Quote Originally Posted by simonl View Post
    I don't really think they give a rats as to whether the true GST is paid or if the purchaser just adds a tribute amount.
    I'm starting to think that as well. GST wise the ATO is just interested in picking off the low hanging fruit so the govt can say to Aussie retailers that they have something in place to address their concerns. I can just hear Turnbull's voice to a group of retailers "splaning" what a good collection system it is that they have set yup.

  13. #13
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    When looking up an item you bought on my eBay or Paypal, only the items price is indicated. The GreenST component only shows up on eBay at the checkout. Paypal show it as a separate item.

  14. #14
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    Quote Originally Posted by BobL View Post
    I'm starting to think that as well. GST wise the ATO is just interested in picking off the low hanging fruit so the govt can say to Aussie retailers that they have something in place to address their concerns. I can just hear Turnbull's voice to a group of retailers "splaning" what a good collection system it is that they have set yup.
    Of cours that is all it is.

    Ebay, Amazon and Ali Express all have local offices so were pretty much forced to comply.

    Places like Monotaro are not bothering.

    Also keep in mind the GST collection is a money making scheme for these big companies. They collect the money then are free to do with they like with it for a month or so. Invest a few million dollars for a month and I believe you can make some money. If sales stay up, they will always have that extra millions being invested.
    Gold, the colour of choice for the discerning person.

  15. #15
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    I've recently received the following email from shipito.com.

    ***********************
    Hi Robert,

    Beginning July 1, 2018, Shipito is required by the Australian government to collect a 10% Goods and Services Tax (GST) on all “low value goods” imported into Australia, with a value of 1,000 AUD or less. GST is calculated based on the value of any items you ship, plus our service charges. As a result, you will now see a charge for GST at mailout.
    ***********************

    ​Shipito is not AFAIK an Australian business so they could have quite easily told the Australian government (AKA the legal arm of the major retailers) to go jump, as could have AliExpress etc. I'm thinking that to get shipito and others to comply with their request the Oz gummint has made it worthwhile for shipito to be a tax collector for them, i.e. they get a slice of the 10% GST.

    The interesting question is just how big is this slice? The slice needs to cover admin costs of course but how much of a sweetener has been added to it?

    Does anyone know?







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