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Black_Platypus(Newbie)Newbie
1 Jan 2022

Hello,

I recently made an order with the online store TaoBao for a total of roughly $1120 including GST and now the shipping company ( 4PX ) has sent me a notification that I have exceeded the $AUD 1000 tax free limit and that I need to pay the tax and they have sent me an invoice for $330.12 .I have tried telling them that the tax free limit has been abolished and that you now have to pay tax on all purchases and that the tax has already been collected by TaoBao, they don't seem to believe me and have asked me if I could get the ATO to email them about how the GST system has changed with online purchases and how the $1000 threshold no longer exists. Plus, I think the company is skimming considering the amount they ask for the GST and how many people are they doing this to?

Thanks.

6,102 views
2 replies
6,102 views
2 replies

Most helpful response

Most helpful replyATO Certified Response

RichATO(Community Support)Community Support
ATO Certified Response4 Jan 2022

Hello @Black_Platypus


Unfortunately your understanding of the current GST requirements for imported goods is not correct.

Yes, there was a change on the 01/07/2018 where for goods valued at AUD1000 or less there were no duties or taxes payable at the border. However GST could be charged by the overseas vendors and/or freight forwarders (importers). In the case of freight forwarders or 'redeliverers' as they are also known, they can charge GST on top of their standard freight costs and the original vendors product cost. If the goods were delivered to an address outside Australia before then being shipped onto you by 4PX the original vendor should not be charging any GST but 4PX certainly can. This is explained on our web site on this page under the subheading Redelivery services. Scroll down to find it.


As your goods , including GST, are valued at over AUD$1000 then there will also be customs duty payable. That is explained here on the Australian Border Force web site.


So, on the surface at least, it sounds like the charges you are being asked to pay are legitimate.


All replies

Most helpful replyATO Certified Response

RichATO(Community Support)Community Support
ATO Certified Response4 Jan 2022

Hello @Black_Platypus


Unfortunately your understanding of the current GST requirements for imported goods is not correct.

Yes, there was a change on the 01/07/2018 where for goods valued at AUD1000 or less there were no duties or taxes payable at the border. However GST could be charged by the overseas vendors and/or freight forwarders (importers). In the case of freight forwarders or 'redeliverers' as they are also known, they can charge GST on top of their standard freight costs and the original vendors product cost. If the goods were delivered to an address outside Australia before then being shipped onto you by 4PX the original vendor should not be charging any GST but 4PX certainly can. This is explained on our web site on this page under the subheading Redelivery services. Scroll down to find it.


As your goods , including GST, are valued at over AUD$1000 then there will also be customs duty payable. That is explained here on the Australian Border Force web site.


So, on the surface at least, it sounds like the charges you are being asked to pay are legitimate.


Black_Platypus(Newbie)Newbie
4 Jan 2022

Thank you RichATO for your information but I still find it strange as the vendor - TaoBao - is a major online store - China's answer to Amazon and part of the Alibaba group and you are charged the GST automatically when you check out with your order, so it seems I will be paying GST on the GST. Also the funny thing is that it's 5 separate orders that I decided I should wait till they all come in to the warehouse and then have them shipped together so I could save $20 or so on the shipping - that sought of backfired didn't it . Thanks again for your help.

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Hello, I have been asked to pay GST by a freight company when I have already paid it to the merchant | ATO Community