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Forum Index : Electronics : GST on low value imports
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Madness Guru  Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
Does anybody know how widespread the effect of the Gerry Harvey Tax is going to be with people like myself buying Electronic components on Aliepress etc? There are only 10 types of people in the world: those who understand binary, and those who don't. |
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| noneyabussiness Guru Joined: 31/07/2017 Location: AustraliaPosts: 513 |
Someone somewhere in our bloated gubberment gets more money... and it costs more to buy stuff.. the end (I know you were asking a serious question, i dont know the answer, but what i stated is still true) I think it works !! |
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Gizmo Admin Group  Joined: 05/06/2004 Location: AustraliaPosts: 5078 |
Its going to be messy. I do think there should be a lower limit, like anything under $100 should be exempt. Glenn The best time to plant a tree was twenty years ago, the second best time is right now. JAQ |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
A while ago they said it would cost more to administer this than what would be recovered. Amazon has said it is all too hard to implement so now you will not be able to buy from Amazon USA. Aliexpress is the one that affects me the most, I have not been able to find any information as to whether they are going to even bother to try to comply. If a supplier is sending more than $75,000 AUD to Australia then they are supposed to collect the GST. When you buy an item on Aliexpress are you buying from Aliexpress or the supplier? If it is considered to be the supplier by the ATO then most will probably never reach that threshold, even if they do are they going to bother with the ATO. If the ATO tried to enforce it do they have jurisdiction over the Chinese supplier? I agree it is going to be messy, very messy. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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| isochronic Guru Joined: 21/01/2012 Location: AustraliaPosts: 689 |
I wonder if it is due annually, or quarterly as is inflicted on local businesses ? That would imply a quarterly BAS statement and associated bookkeeping..of course if business X gets it wrong and finds that it does not actually reach the annual threshold, they will have to apply to the ATO to get the $ back...and refund it to customers months later..after adjusting it for the changed exchange rates...and the deemed interest..it is kind of ridiculous. |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
They have probably not thought it through very well, it is more about keeping the political donors happy. Same reason they say we need more coal-fired power stations. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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TassyJim Guru Joined: 07/08/2011 Location: AustraliaPosts: 6100 |
My (uneducated) reading of the ATO website is that for eBay etc, you are dealing with the supplier of the goods, not eBay. Considering that many of the 'suppliers' are fronts for a main supplier, it will be difficult for the ATO to work out if they are over the $75k threshold. As long as the ATO doesn't decide to target us as the 'importer' and manages to have arrangements direct with eBay etc for collection, I don't mind paying the extra 10-20c for my typical purchases. I think eBay said they could do it OK but Amazon are using it as an excuse to force customers onto their AU site with over inflated prices. I once purchased goods from Kogan through their AU website but the invoice said Kogan Singapore and I might have to pay GST. I consider that a nasty, sneaky thing to do and they are the ones the ATO should start with. Jim VK7JH MMedit MMBasic Help |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
The ATO has told Ebay and Amazon they will have to collect as the ATO considers that the turn over is all sellers combined. Amazon has said if you are from Australia you will no longer be able to buy from anywhere other than through their Australian site. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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| TassyJim Guru Joined: 07/08/2011 Location: AustraliaPosts: 6100 |
You are right, eBay will collect the GST for the ATO. I must have read it wrong the first time - easy to do. Suppliers who sell direct as well as through eBay will have an interesting time deciding what to do. Suppliers dealing into EU will have had practice when EU made similar rules a few years ago. Jim VK7JH MMedit MMBasic Help |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
Just received an email from Aliexpress saying this "From 1 July 2018, Australian goods and services tax (GST) 10% will apply to each order valued at A$1,000 or less, and AliExpress is required by law to collect such GST and remit to Australian Taxation Office." and this link. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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Ralph2k6 Senior Member  Joined: 24/09/2017 Location: AustraliaPosts: 129 |
Likewise here too Madness. Guessing all aliexpress account holders would have received the same email. Still beats $5 per package being delivered (unless that is to follow). 🤔 Ralph |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
They said a long time ago that doing this would cost more than the money received. at least gerry harvey will be happy now. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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renewableMark Guru Joined: 09/12/2017 Location: AustraliaPosts: 1678 |
I wonder how many Chinese businesses will claim to have under $75k turnover and not have to charge the GST, BUT still charge us the gst and pocket it. This is so open to fraud from overseas sellers and the consumer is the only one that will get stung. It's basically giving the seller an extra 10% cream. IF and that's a bloody big IF overseas sellers actually comply instead of pissing themselves laughing at it, they could easily sell from multiple businesses so each one doesn't pass the $75,000 sales threshold. And still pocket the %10. Cheers Caveman Mark Off grid eastern Melb |
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| brucedownunder2 Guru Joined: 14/09/2005 Location: AustraliaPosts: 1548 |
You are so right Mark --what a laughing stock we must be in the eyes of these smart sellers overseas.. Another big point -"it,s going to cost more than it brings back,betcha thats right also --what a joke. Point is --how in hell can you guys and I can see this ,and yet we have these boofheads in canberra that we pay on average 200 thousand dollars a year for the rest of their life ,and they can,t see it????. I don,t care who you vote for ,thats OK by me ,. But I am so disallusioned at the way we are being run ,it's sad really slowly going down the slippery slide to disarster.... Bruce Bushboy |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
Aliexpress is collecting the GST. A number of years ago jh said that politicians need to be paid well to attract quality people, obviously, they still are underpaid. Seriously though the problem is the people in the background making political donations and pulling the strings is the problem. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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| Phil23 Guru Joined: 27/03/2016 Location: AustraliaPosts: 1664 |
So I wonder how this applies considering I hold an ABN. (Haven't seen the Ali email yet). I'd assume it would need to go somewhere on the BAS if it's not paid by the supplier.  |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
Not sure how that works, what I know though is if I buy from a business that turns over less than $75,000AUD in Australia there is no GST. So I will be attempting to bypass Aliexpress and buy directly from the supplier. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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| Phil23 Guru Joined: 27/03/2016 Location: AustraliaPosts: 1664 |
Yeah a bit unclear. I'd be assuming that it would be up to me to declare my overseas purchases as either business or private on the BAS, (Well, that said, the old format supported such). |
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Andrew-L Newbie  Joined: 30/11/2017 Location: AustraliaPosts: 4 |
I just bought some low value items on ebay from a Chinese supplier and GST of $0.26 was added to the total. I payed for the goods with paypal linked to my credit card. The credit card shows two transactions, one for the goods $2.58 and one for the GST $0.26. Do it once and do it right. |
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| Madness Guru Joined: 08/10/2011 Location: AustraliaPosts: 2498 |
At least Ebay did not do like Amazon and force all Australian customers to only buy from their Australian site. There are only 10 types of people in the world: those who understand binary, and those who don't. |
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