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Shipping from USA - Tax


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For about a year now I have been using ShipiTo which is package forwarding service that allows you to consolidate packages and recieve cheaper shipping provider to AUS.

 

Its been a great service however now TAX !

 

Received this email today.

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.

 

 

CAN anyone recommend a package forwarding service that may not be getting hit with the TAX?

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For about a year now I have been using ShipiTo which is package forwarding service that allows you to consolidate packages and recieve cheaper shipping provider to AUS.

 

Its been a great service however now TAX !

 

Received this email today.

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.

 

 

CAN anyone recommend a package forwarding service that may not be getting hit with the TAX?

 

Dude it’s 10% if you can’t afford the extra $50 to a $100 then should you really be buying the goods. And I’m sure all commercial shipping company’s will do the tax collection thing.

 

 

Sent from my iPhone using Tapatalk

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Dude it’s 10% if you can’t afford the extra $50 to a $100 then should you really be buying the goods. And I’m sure all commercial shipping company’s will do the tax collection thing.

 

Yep, they will certainly be the first ones targeted, although there's a loophole here, as they don't sell the goods.

As long as the sellers base the GST thing on the shipping address and not the billing one, you'll never pay the GST twice.

 

I'll have to ship a couple of stuff from MyUS soon, I'll update and tell you if they charge the GST too.

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Yep, they will certainly be the first ones targeted, although there's a loophole here, as they don't sell the goods.

As long as the sellers base the GST thing on the shipping address and not the billing one, you'll never pay the GST twice.

 

I'll have to ship a couple of stuff from MyUS soon, I'll update and tell you if they charge the GST too.

The info on the ato site explicitly mentions forwarders and how they should collect tax.

 

From https://www.ato.gov.au/General/New-legislation/In-detail/Indirect-taxes/GST/GST-on-low-value-imported-goods/

 

 

treat re-deliverers as the suppliers of low value goods if the goods are delivered outside of Australia as part of the supply, and the re-deliverer assists with their delivery into Australia as part of a shopping or mailbox service that it provides under an arrangement with the consumer
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Without any surprise, MyUS does it too:

 

Australian Members: You CAN still shop Amazon.com USA after the 1 July GST tax update! Simply use a VPN to access and shop Amazon.com, and checkout using your MyUS address. Learn more. For all stores, a 10% GST will be applied to shipments valued under 1000 AUD at time of ship request.
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I think it stinks and it's going to get worse. A parcel tax is next on the agenda followed by a customs tax.

 

Fair enough if the generated revenue was put to good use, however sadly it's not.

 

Cost of living is high enough and we are already taxed to death in EVERY area. Yet education remains sub-par, health care costs soar out of control and foreign debt is unimaginable. Billions spent on practically the poorest performing internet structure in the world, only country that charges stamp duty on housing and now we have the highest electricity prices in the WORLD. Oh and we no longer own anything whatsoever.

 

Enough is enough. Sick of this greed and corruption. Our country is going down the toilet and no-one is noticing.

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I don't understand why people are upset that they now have to pay GST on overseas orders.

 

You've been paying it for a long time now on goods ordered within Australia, so it's not really an extra tax, just collecting what's was always due.

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It's upsetting as we already have the highest retail prices in the world. Markup here is insane, as high as 300% in some cases. At least there was some form of refuge by purchasing OS.

 

I don't pay VAT when purchasing goods from the UK, conversely UK residents don't pay our GST when purchasing from us. Seems unfair that everything I purchase from OS is now 10% dearer. I already lose 1/3 of my pay to tax. I lost 20K+ to the government when I purchased my home so there goes my savings and opportunity to lower my mortgaged amount. Heaven forbid I use my air conditioner or heating for fear of crippling electricity costs. In SA our vehicle registration is amongst the highest in the world. Fair enough if we had something to show for all the money the government takes but we do not. We are so far behind in nearly every important social area.

 

Thing with the GST is it never balances out to a flat 10%, retailers always take advantage. Look at new motor vehicles as an example, prior to the introduction of the flat 10% GST tax on cars was close to 20%. Have cars dropped in price since the 10% tax reduction? No, dealerships just padded out their retail pricing so the consumer saves nothing and they pocket the extra.

 

If they, the government and Australian retailers like that dispicible Gerry Harvey, want to 'level out the playing field ' perhaps they could lower their retail prices or reduce their exorbitant wages and life long pension plans.

 

Modern slaves aren't in chains, they're in debt.

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sadly it is going to be on every package coming into Aus, even ebay etc, not sure about GIFT packages

 

here is a gst and duty calculator as a rough guide as it will not just be GST but a duty tax as well and in the near future possibly a processing fee (as it is going to take time charging us GST and storing goods until we pay) of $2-$7 per package depending on value apparently

https://www.wwcf.com.au/customs-duty-import-goods-and-service-tax-calculator/

 

found this article and questions and answers at the end detail more info:

https://www.penguinaccounts.com.au/gst-low-value-imports-2018/

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sadly it is going to be on every package coming into Aus, even ebay etc

 

I don't think it reads that way at all. GST on packages valued at less than AUD $1000 will be collected at the source (seller), not the border. Even then, it only applies to those sellers with total Australian sales over AUD75K per year.

 

If the packages are going to be marked to indicate that GST was collected by the overseas seller is not clear.

 

not sure about GIFT packages

 

Items sent from private individuals are not in the scope as far as I know.

 

here is a gst and duty calculator as a rough guide as it will not just be GST but a duty tax as well and in the near future possibly a processing fee.

 

This is what currently happens with packages values over AUD $1000 right now and has been for many years. I've not seen any ATO advice saying that this will be extended to the sub $1000 category.

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I don't understand why people are upset that they now have to pay GST on overseas orders.

 

You've been paying it for a long time now on goods ordered within Australia, so it's not really an extra tax, just collecting what's was always due.

 

I`m sure gst will be on my postage as well as product on my next CPR playfield order.

DHL have been been collecting extra off me for a few years now.

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It's upsetting as we already have the highest retail prices in the world. Markup here is insane, as high as 300% in some cases. At least there was some form of refuge by purchasing OS.

 

I don't pay VAT when purchasing goods from the UK, conversely UK residents don't pay our GST when purchasing from us. Seems unfair that everything I purchase from OS is now 10% dearer. I already lose 1/3 of my pay to tax. I lost 20K+ to the government when I purchased my home so there goes my savings and opportunity to lower my mortgaged amount. Heaven forbid I use my air conditioner or heating for fear of crippling electricity costs. In SA our vehicle registration is amongst the highest in the world. Fair enough if we had something to show for all the money the government takes but we do not. We are so far behind in nearly every important social area.

 

Thing with the GST is it never balances out to a flat 10%, retailers always take advantage. Look at new motor vehicles as an example, prior to the introduction of the flat 10% GST tax on cars was close to 20%. Have cars dropped in price since the 10% tax reduction? No, dealerships just padded out their retail pricing so the consumer saves nothing and they pocket the extra.

 

If they, the government and Australian retailers like that dispicible Gerry Harvey, want to 'level out the playing field ' perhaps they could lower their retail prices or reduce their exorbitant wages and life long pension plans.

 

Modern slaves aren't in chains, they're in debt.

 

yep and who are the f%&king culprits for increasing the s/hand pinball prices so that I can't afford to buy these anymore. My $1500 T2 is now $7K+. Please advise why this is so. How much GST is collected on a $10K TZ I wonder. You wouldn't have a monsterbash for $3K you could sell me so not to profiteer on the market trends

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I really cant see a problem with the GST being charged on items, I dont buy from overseas to dodge the GST, I do it because it is well under half price to do so, and I can buy 2 for less than 1 here.

 

My understanding of it from importing in the past, the GST on a non Australian seller will be for the total item price including packaging, shipping and exchange rate to AUD, so if you but a item for $10 US & it costs $40 US to ship it to you, you will pay $55 US (give or take exchange rate charges), I dont think this will break the bank or stop people buying from overseas, the problem will be if the seller can be bothered with the extra crap to charge you the GST, then send it off to the Australian government, I think you will find more sellers not willing to sell to Australia, this is going to be the problem.

 

There are ways around it though, you can get a friend or a friend of a friend :) in the US to purchase it for you, then he posts it to you, as long as he does not send more than $75000 worth per year, its all good :D

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My unfortunate gripe about the thread is some people are happy to ship $AUD's os, not give a stuff about out sourcing jobs, selling their properties to os investors for big bucks, allow the sale of OZ Companies but when they lose a dollar out of their pocket, the world is over. GST is recovering a shit load of money that's leaving our shores and maybe making it less attractive to buy os and more so forcing us to look at the local market.

 

Sorry but a raw nerve it here as I see once I'm worm shit, those left (next gen or two )here may not have a great life in oz and its our fault.

 

Roll on amazon Aust, lets see more dough leave our shores, hell we can just print more cash can't we?

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I think it stinks and it's going to get worse. A parcel tax is next on the agenda followed by a customs tax.

 

Fair enough if the generated revenue was put to good use, however sadly it's not.

 

Cost of living is high enough and we are already taxed to death in EVERY area. Yet education remains sub-par, health care costs soar out of control and foreign debt is unimaginable. Billions spent on practically the poorest performing internet structure in the world, only country that charges stamp duty on housing and now we have the highest electricity prices in the WORLD. Oh and we no longer own anything whatsoever.

 

Enough is enough. Sick of this greed and corruption. Our country is going down the toilet and no-one is noticing.

 

Couldn't have said it better myself, , I pay enough tax and they are not getting anymore off of me, not even a cent.

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The big problem for us will be OS retailers refusing to ship to Australia because the administrative burden is not worth it.
In which case you use a re mailer who already says they will do it.
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I know rtbb has help on numerous occasions to get special stuff in from pbr, pinball life etc etc. yes it will probably cost a little more but you're at least keeping another Australian in business and employed. I think that's important.
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From what I read a few weeks ago, retailers or shipping companies that ship goods inbound to Aust (whether they are Aussie or not) with an annual turnover over of more than $75k need to collect the GST (having applied to the ATO) ... or no longer ship in Aust. This includes Aussie companies that having recieved the order, then ship the goods direct from the OS manufacturer to you.

 

There was very little detail on what happens for individuals bringing goods in from OS small companies or individuals (that don't collect the GST upfront), however I seen some info that implied customs would hold the goods and contact the buyer to pay the GST before releasing the goods. There was no mention or any information on how gifts are handled.

 

While goods over $1k have GST applied to the cost/value of the goods plus shipping and duty (if applicable - pinball machines and parts have an exemption code), details on what the GST will be applied to on the new low cost imports (ie <$1k) is unclear ... certainly the goods but possibly the shipping as well.

 

I guess we'll find out soon enough how it all works but if people could post their experience of how the process works (especially if bringing in something that hasn't had GST prepaid on it) it would useful

 

Sent from my SM-G800Y using Tapatalk

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retailers or shipping companies that ship goods inbound to Aust (whether they are Aussie or not) with an annual turnover over of more than $75k need to collect the GST

 

Just a small clarification here based on my understanding of the new law.

 

The AUD $75K figure is in respect to the Australia delivered portion of their annual turnover. That is, if they sell less than AUD $75K of goods (and freight) to Australia each year, they do not need to collect (and remit to the ATO) any GST.

 

This key point may be the difference in overseas companies deciding to supply to Australia or not. How the ATO knows the Australian portion of the turnover of an overseas company however is something I don't know.

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