Thread: GST for internet-bought stuff under $1000.00 ?

Our Govt is looking at doing the same, no surprises. Currently the cut off is $400.
I can sort of understand it on new items, but not used.

Don't know how it works elsewhere but here any inbound items are processed by Customs and the GST is collected by them. That is unless it is sent via a shipper like UPS who acting as a broker pays the GST and collects from you after. These shippers also have a nasty habit of charging an additional fee, among other fees, for the service of collecting the GST.

Bob

Originally Posted by BobH

Don't know how it works elsewhere but here any inbound items are processed by Customs and the GST is collected by them. That is unless it is sent via a shipper like UPS who acting as a broker pays the GST and collects from you after. These shippers also have a nasty habit of charging an additional fee, among other fees, for the service of collecting the GST.

Bob

Oh yes. Here we have storage fees, customs fees , quarantine fees on wood scales etc & any other fee they care to invent but they usually only flag $1k items.

Originally Posted by onimaru55

Oh yes. Here we have storage fees, customs fees , quarantine fees on wood scales etc & any other fee they care to invent but they usually only flag $1k items.

CBSA, Canadian Customs, take care of the GST and any customs fees. Never been charged a storage fee by them or had any wood quarantined by them either. CBSA does enforce the CITES Treaty on endangered wildlife and fauna but then I imagine that is pretty standard. I don't know at what limit they flag inbound items but I guess if the paper work cost more than collecting they take a pass on it. That is just a guess though.

Bob

Our government is saying it will cost more to manage than they will earn. It is the retailers who are pushing for it here.

Originally Posted by Grazor

Our government is saying it will cost more to manage than they will earn. It is the retailers who are pushing for it here.

It is funny and sad that retailers would want that as generally they are a conservative bunch and support governments that encourage free trade. Now they want back door protectionism when they fail to compete globally. Talk about having your cake and eating it too.

Bob

In SA all imports obviously have to go through Customs who then decide whether the item attracts duties as per the international customs code but it doesn't stop there.

They convert the foreign amount at the prevailing exchange rate and use that as a basis to calculate VAT, which is 14%. They then decide for all their trouble to add 10% onto the VAT amount effectively levying it at 15.4% and then a R20 documentation fee.

Fortunately, if the value of the item is below USD20 it generally doesn't attract VAT and only the documentation fee.

All the above is all well and good but the first major hurdle one has to cross, is getting your goods delivered to your local Post Office and to escape the clutches of those pilfering bastards at the International Mail Centre. I imported parts for my car last year which have never showed up and it took 2 months to get razor blades from Singapore.

I'm extremely loath to import items such as razors, brushes and hones because of these sticky fingers. I can use a service such as Stackry or Postbox-Courier but unless I have enough items to warrant the courier fees, importing once off items becomes prohibitive.

Originally Posted by Thug

All the above is all well and good but the first major hurdle one has to cross, is getting your goods delivered to your local Post Office and to escape the clutches of those pilfering bastards at the International Mail Centre. I imported parts for my car last year which have never showed up and it took 2 months to get razor blades from Singapore.

I'm extremely loath to import items such as razors, brushes and hones because of these sticky fingers. I can use a service such as Stackry or Postbox-Courier but unless I have enough items to warrant the courier fees, importing once off items becomes prohibitive.

Sorry to hear about the crappy situation with the SA postal service and pilfering. A lot of people bitch about our postal system here but got to say, touch wood, pilfering has not been often heard as a complaint, at least from me. Generally pretty confident that CanPost will get it here from customs although it can take a while.

Bob

The more I think about it, the more likely I think it'll only be aimed at the $500 to $1000 price bracket. The cost of administration of the Australian GST is bad enough but adding it onto "small imports" will just make it over the top. I don't see how it can be administered by anyone other than the Government because we have quite a large list of exemptions. It's easy to administer in Australia because each exempt item is given a taxation code that identifies it as such. Who is going to determine if the $50 item I bought overseas is GST exempt or not? If it is not, how are they going to collect the GST (a whole $5)? I really think that it's going to be unworkable. Most of the things that I bring into Australia from overseas are through a mail forwarding service so it is me that identifies the item and lists it's value. No one in Customs knows whether the "old razor" I imported is worth $5 or $300.