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Thread: New Australian tax law. Does eBid need to make changes ?

  1. #1

    Default New Australian tax law. Does eBid need to make changes ?

    I've just read on another site that Australia have brought in a new tax law obviously to save their customs people from having to do their work ! Why is online selling getting so bloomin' complicated ?!

    Will eBid have to do something similar to this ? I know we haven't got a checkout but what about Paypal payments, is eBid required to do anything ?

    Because of the new law, beginning 1st July 2018, Et*y will collect a 10% GST on orders if each of the following applies:

    • You, the seller, are located outside Australia
    • The package is being shipped to a buyer in Australia
    • The total value of the package is less than or equal to $1,000 AUD

    If an order in your shop meets these requirements, Et*y will automatically include the tax in the buyer’s total. The buyer will pay the tax at checkout, and Et*y will be responsible for remitting it to the Australian tax office (ATO). For orders placed through PayPal, Et*y will send the GST collected to you as a part of the payment. Then, Et*y will add a fee for the tax to your Et*y statement so that we can remit the tax to Australian authorities. GST does not apply if the total value of the package is more than $1,000 AUD or if the transaction is between buyers and sellers both located in Australia.

  2. #2

  3. #3

    Default Re: New Australian tax law. Does eBid need to make changes ?

    Ah right, thanks for that Annie, looks like eBid would have be be doing over A$75,000 worth of business with Australia so maybe we are exempt at the moment.

  4. #4

    Default Re: New Australian tax law. Does eBid need to make changes ?

    OK - for a start - GST stands for GOODS & SERVICES TAX not General Sales Tax as described in the article. It is currently levied at 10%.
    It is going to be very interesting, to say the least, how on earth the Oz Gubment, is going to enforce O/S businesses to comply - THAT is very debatable, & a public service logistical nightmare IMHO.
    Not to mention just what would happen if we have a change of government at the next election? The newbies (if any) could throw it out? OR increase the %, who knows!
    I think they'll find they've bitten off more than they can chew here!

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    Default Re: New Australian tax law. Does eBid need to make changes ?

    I'm wondering though, who is classed as making sales to Australia/New Zealand? Is it eBid or is it us the individual sellers? If I sold from a bricks and mortar store owned by Tesco's surely the tax liability for products sold would be mine not Tesco's. Even Etsy's claim that Paypal sales would result in them sending the seller the tax to pay the Au tax seems to say this is the case. I'm sure Au gov would love every auction site seller

  6. #6
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    Default Re: New Australian tax law. Does eBid need to make changes ?

    Unfortunately, the most likely result of a country's government levying a tax on goods being imported into the country is to have the sellers affected to re-evaluate their willingness to export to that country. If compliance with that countries tax law causes added work or expense to them, they may decide that the income derived from such sales doesn't warrant exporting to that country.

    If the GST is actually a tax levied by the Australian Government on its own citizens, but requiring the merchants of other countries to act as their agents in collecting it for them, the result may be much the same. Any additional red tape or administrative paperwork required of the merchant could result in them simply excluding that country from their operations. Thus, without a compelling reason not to do so, some sellers may quit selling to buyers in Australia. This may or may not be something that the Australian people or their government wants. While not being an issue when related to items readily available on the local Australian market, items that are not may become harder to find there and more expensive.

    Of course, Australia has the right to tax their people as they see fit, I suppose. That would be a political issue between it and its citizens.

  7. #7

    Default Re: New Australian tax law. Does eBid need to make changes ?

    Quote Originally Posted by JaBek1 View Post
    Unfortunately, the most likely result of a country's government levying a tax on goods being imported into the country is to have the sellers affected to re-evaluate their willingness to export to that country. If compliance with that countries tax law causes added work or expense to them, they may decide that the income derived from such sales doesn't warrant exporting to that country.

    If the GST is actually a tax levied by the Australian Government on its own citizens, but requiring the merchants of other countries to act as their agents in collecting it for them, the result may be much the same. Any additional red tape or administrative paperwork required of the merchant could result in them simply excluding that country from their operations. Thus, without a compelling reason not to do so, some sellers may quit selling to buyers in Australia. This may or may not be something that the Australian people or their government wants. While not being an issue when related to items readily available on the local Australian market, items that are not may become harder to find there and more expensive.

    Of course, Australia has the right to tax their people as they see fit, I suppose. That would be a political issue between it and its citizens.
    I think this is true. In the past on the forums here we have had many posts asking how you go about selling overseas from sellers that were nervous about doing so. It's bad enough having to remember which countries require you to put your return address on the front of the parcel instead of the back but if you now have to remember to put extra information on your customs form quoting number codes and the address of the site you are selling on then I think it will put new sellers off shipping overseas. Also if you forget to do it you could end up with an angry buyer that has been charged the tax twice !

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