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Hello,

 

My question relates to the situation regarding GST payable on imports as from 1/7/18. I believe that GST is payable on the cost of an item purchased and not on the freight/postage cost of getting getting it into Australia? This is in reverse to postage stamps currently available both with GST included for home consumption but without GST for export.

 

If this is correct, then eBay is charging GST on the cost of goods and on freight/postage costs. The situation is made slightly more complex by the fact that the example under scrutiny was bought from a Malaysian identity using the American site (in US$), so eBay's site in the Philippines which handles Australian enquires has said it's nothing to do with them, but suggested I talk to the Americans.

 

This situation will bring in more tax (that's tax plus wrongly collected "tax") that the law allows them to collect.

 

Please can you advise to both the ATO's position and the course it will take in answer to this situation. Over but a short time this amount of incorrectly collected revenue will reach a fortune.........., which can be argued is good for the ATO and the Government but bad for the people who interests they serve.

 

Regards,

 

 

Brian.

 

 

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Devotee

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Hi @brianchambers, we've answered a similar question on Online Business applying GST on postage.

 

Our role as the Australian Taxation Office is to administer tax and super legislation that has been passed by the Federal Government. While we may be approached for feedback from time to time, the ultimate decision is made by the government. If you have questions or suggestions for changes to tax or super law, contact the Treasury or your local Member of Parliament - you can find their contact details on the Australian Government website.

 

Thanks.

1 REPLY 1

Best answer

Devotee

Replies 0

Hi @brianchambers, we've answered a similar question on Online Business applying GST on postage.

 

Our role as the Australian Taxation Office is to administer tax and super legislation that has been passed by the Federal Government. While we may be approached for feedback from time to time, the ultimate decision is made by the government. If you have questions or suggestions for changes to tax or super law, contact the Treasury or your local Member of Parliament - you can find their contact details on the Australian Government website.

 

Thanks.

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