Thread: Customs Import Scam or Not?

Originally Posted by Arapiles

Actually no foreign company has to register for GST as they’re not subject to Australian laws.

So keeping it simple from a consumers point of view only - overseas suppliers should not charge GST unless they are registered to do so, and if they are registered and collect GST - then if the combined value of the goods is above $1000 then they also do not have to collect GST as this will be collected at the border. But if they do collect GST on orders above $1000 - then this information has to be provided to Customs with the import declaration otherwise you will be charged again.

As the consumer all you need to be aware of is - make sure you don’t pay GST twice.

Phew - I am glad the ATO made it all so easy.....

The GST (VAT) in the UK is 20%. If the goods/services are being exported the VAT component should be deducted.

Originally Posted by Arapiles

Actually no foreign company has to register for GST as they’re not subject to Australian laws.

Now making it complex from the suppliers point of view. Heh heh....

Australia does have tax and trade agreements with many countries, and under international laws a company not only has to comply with the tax laws in their own country but also the tax laws in the country they do business.

Compliance is managed through international collaboration between different jurisdictions under different treaties, and a competitor who does the right thing can report other suppliers who are not following these same laws if they suspect they are not complaint.

All the overseas supplier needs to know is - if you are doing more than A$75K in direct sales to Australia you must register for GST unless exempt.

There are exceptions - such as sales through platforms like eBay and AliExpress who will collect GST instead. It is a simple process and all done electronically.

As a consumer we don’t need to worry about this.

Originally Posted by 101RRS

No because he paid the GST to Paddocks. The $1K threshold before you paid GST was dropped a while back.

No mention of Don paying gst , I work in customs brokerage so I'm well aware of what's charged and what's not.

Originally Posted by DiscoDB

Now making it complex from the suppliers point of view. Heh heh.... Australia does have tax and trade agreements with many countries, and under international laws a company not only has to comply with the tax laws in their own country but also the tax laws in the country they do business. Compliance is managed through international collaboration between different jurisdictions under different treaties, and a competitor who does the right thing can report other suppliers who are not following these same laws if they suspect they are not complaint.All the overseas supplier needs to know is - if you are doing more than A$75K in direct sales to Australia you must register for GST unless exempt.There are exceptions - such as sales through platforms like eBay and AliExpress who will collect GST instead. It is a simple process and all done electronically.As a consumer we don’t need to worry about this.

I'm pretty sure that the UK/Australia DTA doesn't cover GST and in any case, if it did, it would work the other way - we'd be paying VAT because they're the taxing entity.

There's no legal obligation for foreign entities to charge and remit GST, the Federal government just harassed some of the bigger foreign actors into doing it.

International trade is definitely a complex area. My only advice would be for overseas suppliers to get their own tax advice. Certainly been drummed into the training I have received that companies doing international business have to comply with the laws of both the country they are based in as well as the laws of the country they do business with.

It should not result in getting hit with a double tax rate. In the UK the VAT rate is currently zero if selling goods to non-EU countries. Will be interesting to see if this changes as new trade agreements are signed off with the UK now that the UK is no longer in the EU.

You are probably right that the ATO would struggle to enforce this but I note since the GST came into effect on low value goods (below $1000), many UK based high volume LR parts suppliers have now set up an “Australian” shop window where they quote and collect GST on sales.

Anywho - we are getting off topic as the original point I was trying to poorly make was around making sure you don’t pay GST twice and that suppliers may or may not collect GST under different circumstances.

And as far as low value goods go, Customs would not get involved in this either (unless it was deemed not to be a low value good) so don’t fall for any claims on charges by shipping companies on goods valued below $1000 without checking the details first.

Hello All,

My fully re-manufactured, exchanged Bosch VE diesel injector pump arrived from England this afternoon!

I know what I am going to do tomorrow...

Kind regards
Lionel

Did you try to source it locally, Lionel?