Swerv-o

Did anybody notice this article recently about proposals to make overseas retailers collect the GST on goods on behalf of the government?

GST for online shoppers

I can't help thinking that this plan misses the point almost entirely. Overseas retailers with a presence in a country have to arrange the sales tax, but where they don't have a presence, e.g. Amazon in Australia, there's absolutely no rationale for them to comply with Australian tax legislation...


S

Amazulu

That's nuts. I've had an Amazon account like forever and have never seen this.

Simple solution would be to open another account at Amazon.com.

GarryP

Amazon are extremely iffy about collecting sales taxes for states within the US. Saying that they are going to collect the GST for the Australian government from outside is liable to receive a raspberry.

Why don't they just accept that the problem is the retailers/distributors and commercial rental INSIDE Australia, and do something about that?

Even better, why not realise the reason for the retailer issues is also based on the exchange rate which is based on the interest rate being out of phase with the world. THAT is entirely inside their control.

Swerv-o

You're preaching to the converted here sir - I abhore the blatant markups that are being demonstrated by retailers at the moment - and much of it is pretty unashamed.

Though, in this case, I really can't see Amazon agreeing to collect the tax for the government. At least without payment.

What I find annoying is the government genuinely believes that they have a right to levy a tax on items bought overseas, almost as if it's a blanket tax on ALL purchases made by Australian residents. GST is for goods and services that are sold within Australia, not sold in some other jurisdiction.


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Pollyana

Are you buying from Amazon themselves though or from one of the market place sellers within Amazon? Some of them send out their own stuff rather than it being done centrally, and won't despatch to Aus.

Amazulu

I don't think the government wants to do this - it would be a big vote loser for not much gain. The retail industry is agitating for it and there may be proposals banging about, but I can't see the government implementing this as it would be unworkable.

Luthien

So just to clarify,

An Australian business sending goods to an overseas address does NOT charge 10% gst.
"Exports are generally GST-free. These generally include:
goods physically exported from Australia
services supplied to a non-resident outside Australia. "
Ref:http://www.ato.gov.au/businesses/con...tent/65957.htm

Australians purchasing goods from an EU country (say from amazon.com.uk) and delivering to their Australian address do not pay the VAT.
"VAT is a tax charged on goods used in the EU, so if goods are exported outside the EU, VAT isn't charged. You can zero-rate the sale, provided you get and keep evidence of the export, and comply with all other laws.
Ref http://www.hmrc.gov.uk/vat/managing/...orts/goods.htm"
If you are an overseas traveller you can claim a VAT refund by applying to customs when you leave the EU.
Ref:http://www.direct.gov.uk/en/MoneyTax.../VAT/DG_190920

So when I buy from Amazon.com.uk the prices don't change. Is the zero rating of VAT the means they can offer free shipping to Australia (or reduced shipping these days)

Luthien

Well I just live chatted with amazon:

You are now connected to xxxxx from Amazon.co.uk.
Me:I am in Australia - does my invoice include VAT ?
xxx:Hello my name is xxx.
The invoice you receive with the order is not a VAT invoice.
Me: Do I pay VAT on my orders delivered to Australia?
xxxx:No , there is no VAT charged on orders sent to Australia.
Me:Ok thanks for your time

Luthien

I just checked Aust Posts last Annual Report online:
"Another factor that had a detrimental effect
on this year’s results was the strength of the
Australian dollar. Our inbound international
parcels volumes boomed this year as more
consumers took advantage of the strong
Aussie dollar to shop offshore, but we
lost money on the delivery of inbound parcels
weighing under 2 kilograms because of the
structure of international payments to us
under the Universal Postal Union’s global
rate-setting agreements."
Ref: http://auspost.com.au/about-us/annual-reports.html page 7


So to wikipedia for the Universal Postal Unions global rate-setting arrangements.
"The UPU established that:

1. There should be a uniform flat rate to mail a letter anywhere in the world
2. Postal authorities should give equal treatment to foreign and domestic mail
3. Each country should retain all money it has collected for international postage."

So yes a big win for Aust Post if Amazon establishes a whorehouse in Australia.

lesleys

Don't forget www.booko.com.au

They now include DVDs and e-books.

roaringmouse

Plenty of those already from what I've been told.

Luthien

It was a joke referring to the thread title. I probably should have put a smilie as it was a little subtle

roaringmouse

It has now arrived - or at least the cloud computing part owned by Amazon.

fish.01

We were told a few weeks back that amazon would buy into an existing data centre initially to provide cloud services...oct/nov launch.