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Oh woe is Australia, with 10% GST on overseas goods under $1000 in July

  1. GuiltyBoomerang Jun 5, 2018

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    So I've been using ComGateWay to ship items from the States to down under.

    While it has been a lovely service, this email popped in and all I could think of was "Taxes and Death are the only true things in this world..."

    Screenshot_20180606-114858_Gmail.jpg

    Which is understandable. Now, there is a bit of a catch, which Vogue Magazine highlights:

    20180606_115433.jpg

    Theoretically speaking, if you are not a business and are sending watches/bands under a declared value of $1000AU, then you and the recipient should still be spared from the GST.
     
    queriver likes this.
  2. WurstEver Jun 6, 2018

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    I got this message today too. Very disappointing. Is it certain that the new regulations apply to both their buy-for-me service and their simple parcel forwarding service? I can see how the former would work, but the latter strikes me as difficult to implement.

    I wonder, what persuades an international company to become a tax collector for the Australian government?
     
    queriver likes this.
  3. GuiltyBoomerang Jun 6, 2018

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    I am not sure, we shall see what happens if I ship once July hits...

    Probably so they can stay on the good side of government as it is quite easy to underdeclare items if desired...
     
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  4. cristos71 Jun 6, 2018

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    Count yourself lucky, here it's 21% of everything above €35 :mad: and the shipping costs are increduously also included in the calculating of this the total :mad::mad:

    On top of that there will be customs admin costs plus finally import rights costs :mad::mad::mad:
     
  5. gop76 Jun 6, 2018

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    Only 21%? You're a lucky man, 23% for me...
     
  6. OMGRLX a RolexBear in disguise Jun 6, 2018

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    Other than Australia, where do the rest of you lucky gents reside?
     
  7. Speedmasterfan88 Jun 6, 2018

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    26% here.... I could only dream of 10%. Kills every deal from outside the EU for me.
     
  8. Spacefruit Prolific Speedmaster Hoarder Jun 6, 2018

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    Hong Kong. 0%
     
    pascs, kkt, khanmu and 3 others like this.
  9. queriver Jun 6, 2018

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    In practice many businesses will decide not to get themselves involved in our GST collection. Extract from ATO website: (source: https://www.ato.gov.au/business/international-tax-for-business/gst-on-low-value-imported-goods/)
    "
    Businesses that meet the registration threshold of A$75,000 will need to:
    • register for GST
    • charge GST on sales of low value imported goods (unless they are GST-free)
    • lodge returns to the ATO.
    These businesses may be merchants who sell goods, electronic distribution platform operators or re-deliverers. For goods imported in a consignment over A$1,000, any GST, customs duty and clearance charges will be charged to the importer at the border under existing processes.
    "
    How many small overseas businesses with annual revenue of even significantly more than AUD75K will go to the trouble to register for Australian GST, charge GST on small transactions, lodge GST returns and remit funds to the ATO? None, not worth the effort. This tax was set up to placate local retailers who argued the playing field isn't level against large online platforms like Amazon and ebay and it's those companies that will comply. And re-deliverers. If you buy from small businesses and don't use re-deliverers probably no change.
     
    Edited Jun 6, 2018
    rob09 likes this.
  10. STANDY schizophrenic pizza orderer and watch collector Jun 6, 2018

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    eBay, Amazon and big players.

    Any brands that have stores or a presence in Australia will not be able to ship to Australia. Most clothing brands have started already ask and female Australian that buys online.

    Many places will just stop selling to Australia like many knife places I used to be able to buy from.

    The plan was for the FedEx DHL places to collect prior to pick up but they refused as they are freight handers only and would have to store millions of parcels and wear the cost or returning unpaid, unclaimed goods.
     
  11. Dero13 4 watches. All set to the wrong time. Jun 6, 2018

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    One of the best perks of living in HK. Well that and taxes
     
  12. GuiltyBoomerang Jun 6, 2018

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    HK is my hometown, and those perks you mentioned are great, the cost of everything else can drag it down a bit. If you can afford the living costs then I agree that HK is lovely for the watch scene :)