Thread: GST on purchases from UK etc

Originally Posted by Bigbjorn

I have two principal US suppliers. Neither charge me GST just catalogue price less my dealer discount plus actual postage. Neither are interested in Australian red tape as their business to Australia is not sufficient to justify the extra work. They pick it, pack it, and take it to the post office. I have always made sure my orders are <AU$1000 including postage. If necessary splitting orders into two or more units. I have my suppliers use cheapest air-mail, usually flat rate boxes. USPS provide the boxes free and will complete the customs declaration for the sender. Great service and best price.

Yep, that's what I've found. Most of the small sellers in the US don't even know where Australia is, let alone collect tax for our government!!!!
And if you can work with some good, known firms, it pays off when they look after you with USPS delivery.
If Australian customs ever decide it is profitable to collect GST on small parcels, I'll pay it, but me thinks it is a long way off yet.

Have never been charged GST /VAT on UK items as they are being "exported" (No VAT).
Have always asked suppliers to breakk invoices/parcels into under $1000 per package and so far have never been hit for GST either.
Ebay sites do add GST as their committment to helping our government extract GST (from everybody but them it would seem).

It also seems that USA gets LR parts supplied to them cheaper than our dealers in Australia (at least that is what the dealers tell us).

[QUOTE=vbrab;2924808
It also seems that USA gets LR parts supplied to them cheaper than our dealers in Australia (at least that is what the dealers tell us).[/QUOTE]

I bought some Australian made accessories for my '86 County from a USA dealer. Landed here by air mail around 30% cheaper than the rogues selling these items in Australia charge. Now the USA dealer has to ship the stuff from Australia and then send it back via an expensive method, air-mail. Australian retailers in many cases suffer from the greedy syndrome. They need to modify their thinking. Times have changed. We can now buy from anywhere in the world and get it here relatively quickly.

Originally Posted by Bigbjorn

I bought some Australian made accessories for my '86 County from a USA dealer. Landed here by air mail around 30% cheaper than the rogues selling these items in Australia charge. Now the USA dealer has to ship the stuff from Australia and then send it back via an expensive method, air-mail. Australian retailers in many cases suffer from the greedy syndrome. They need to modify their thinking. Times have changed. We can now buy from anywhere in the world and get it here relatively quickly.

There’s quite a bit more to it than that...

Exports from Australia get concessions on volume exporters - and no additional taxes or duties.
They are shipped in bulk via sea container which is sub $1k. Then held in warehouses.

If a Dealer orders for export, no state taxes apply.

Over here, a dealer will buy a few items, pay all taxes applicable, plus has to hold stock, pay much higher wages, payroll tax, super etc. so they need to recoup costs in a more prompt manner or they go out of business.


Your drop-ship orders circumvent on a small level exactly what many bitch about bigger companies attempting to do; tax avoidance/reduction.

Sure, you may have a little less mark up, but that’s your choice. Go put $300k worth of goods on your shelf and see how quick you would want your money recouped.

Originally Posted by Tombie

There’s quite a bit more to it than that...

Exports from Australia get concessions on volume exporters - and no additional taxes or duties.
They are shipped in bulk via sea container which is sub $1k. Then held in warehouses.

If a Dealer orders for export, no state taxes apply.

Over here, a dealer will buy a few items, pay all taxes applicable, plus has to hold stock, pay much higher wages, payroll tax, super etc. so they need to recoup costs in a more prompt manner or they go out of business.


Your drop-ship orders circumvent on a small level exactly what many bitch about bigger companies attempting to do; tax avoidance/reduction.

Sure, you may have a little less mark up, but that’s your choice. Go put $300k worth of goods on your shelf and see how quick you would want your money recouped.

Tombie, Brian's Retirement Sale buys all its stock from the USA. I deal in machine shop supplies, engineer's cutting tools, precision tools. Yanks give better service, better quality, far better prices. I was getting obsolete taps and dies made in the USA. I had to order minimum 50 of each size. Last major order I placed was for 900 items and they cost me average AU$4.50 each. My major competitor was selling the smallest size at AU$32 and theirs are made in China. Sheer greed. I know about greedy corporations. I worked for a couple of them. One, a distributor of earthmoving, mining, and construction equipment marked up its spare parts stock by 250% of cost into store. A $100 item was thus priced at $350. This crowd did not give trade discount. They reckoned everyone they sold to was an end user of one kind or another. Another marked up parts and accessories by 175% of cost into store.