N Gauge Forum

General Category => N Gauge Discussion => Topic started by: Stuart Down Under on July 29, 2018, 06:46:24 am

Title: Australian GST
Post by: Stuart Down Under on July 29, 2018, 06:46:24 am
To all my colleagues living in Australia:
I just received my first package from a well known retailer in Liverpool since the changes to Aussie GST rules. I am delighted report that they are still not charging GST on their sales to Australia. Under the new rules since 1st July this year, any "foreign" business selling more than $75,000 of goods into Australia per year must register and collect GST (same as VAT, but only 10%) on their sales. Hopefully sales to Australia will remain below £75,000 for some time.
 :claphappy: :claphappy: :claphappy:
It has been great coming back to Australia. My purchases from UK are 20% less than when I lived there, because VAT is removed, and on small N-gauge items, the delivery charge is only a couple of pounds more. For instance, I just purchased an "as new" Farish DCC-fitted Jubilee from aforementioned retailer for £69 plus £4.60 delivery. It would have cost over $300 from a local supplier.

Come an join us in railway modeller paradise!
 :beers:
Title: Re: Australian GST
Post by: Bealman on July 29, 2018, 07:02:19 am
Good news for sure, Stuart. Thanks for posting!  :thumbsup: :beers:
Title: Re: Australian GST
Post by: Graham on July 29, 2018, 09:29:51 am
I was keeping quiet  :-X, as I received one last week from a UK retailer with some Zimo decoders and it made it without the GST. Lets hope it continues. :)
Graham
Title: Re: Australian GST
Post by: Newportnobby on July 29, 2018, 10:17:40 am

Come an join us in railway modeller paradise!
 :beers:

Wot, and risk Bealman turning up on your doorstep?!

 :no: ;)
Title: Re: Australian GST
Post by: Bealman on July 29, 2018, 10:20:34 am
 :laughabovepost: :laughabovepost:

Watch it. Current plans are to be on yours next year  >:D
Title: Re: Australian GST
Post by: Bingley Hall on August 01, 2018, 08:31:52 pm
To all my colleagues living in Australia:
I just received my first package from a well known retailer in Liverpool since the changes to Aussie GST rules. I am delighted report that they are still not charging GST on their sales to Australia. Under the new rules since 1st July this year, any "foreign" business selling more than $75,000 of goods into Australia per year must register and collect GST (same as VAT, but only 10%) on their sales. Hopefully sales to Australia will remain below £75,000 for some time.
 :claphappy: :claphappy: :claphappy:
It has been great coming back to Australia. My purchases from UK are 20% less than when I lived there, because VAT is removed, and on small N-gauge items, the delivery charge is only a couple of pounds more. For instance, I just purchased an "as new" Farish DCC-fitted Jubilee from aforementioned retailer for £69 plus £4.60 delivery. It would have cost over $300 from a local supplier.

Come an join us in railway modeller paradise!
 :beers:

Excellent - I didn't know about the less than 75,000 squids bit. That is good news.
Title: Re: Australian GST
Post by: longbow on August 01, 2018, 10:30:23 pm
Rails and Hattons are probably the only UK model railway retailers that exceed the $75k Aussie sales threshold. They have previously said that they will be adding GST to Aussie orders, so enjoy the respite whilst it lasts. Once they do I'd suggest Model Railways Direct as an alternative GST-free supplier as in my experience they offer good prices on N Gauge (especially in their frequent sales), plus prompt service and reasonable postage rates. Other GST-free supplier suggestions welcome.
Title: Re: Australian GST
Post by: Graham on August 01, 2018, 10:53:01 pm
just waiting on a shipment from Rails, so hopefully that one makes it through GST free as well.
cheers
Graham
Title: Re: Australian GST
Post by: longbow on August 01, 2018, 11:13:10 pm
There is no provision for GST on small packages to be collected on arrival in Australia, so if the overseas retailer hasn't charged it you won't need to pay it.
Title: Re: Australian GST
Post by: NinOz on August 02, 2018, 01:43:12 am
Aliexpress charges GST. :(
Title: Re: Australian GST
Post by: Webbo on August 02, 2018, 01:47:38 am
I have received an email from Hattons telling me that they will charge the 10% GST. Here in Oz we are subject to the GST on overseas purchases through EBay and Amazon and such electronic clearing houses.

As pointed out already, registration for GST collection is only recommended for companies doing more than $75K in Australian sales. Even then, our government has no real way of enforcing collection from them. In principle, I don't think it is unfair that we pay GST on overseas purchases. My fear is that this GST collection business will morph into a situation in which customs agents will do the collecting on arrival in Australia. Then, with their charges as well we may be liable for a great deal more than the 10% impost.

Webbo
Title: Re: Australian GST
Post by: longbow on August 02, 2018, 02:10:26 am
Hattons are not yet adding GST to Oz orders although I'm sure that will be coming soon.

It has long been recognised that collecting GST on low value imports at the border was not economic. That's why the new scheme relies on the overseas retailer to collect it. The only circumstances in which I can see onshore charges arising would be as a sanction against an online retailer that refuses to collect GST.

Longer term the introduction of electronic customs data exchange will allow much more effective GST collection on imports so enjoy the exemption while it lasts!
Title: Re: Australian GST
Post by: Webbo on August 02, 2018, 03:01:53 am
Hi longbow

According to a notification on their website, Hattons has been charging GST since 1 July:

https://www.hattons.co.uk/NewsDetail.aspx?id=313 (https://www.hattons.co.uk/NewsDetail.aspx?id=313)

Of course, their stated intention might not match what is actually happening yet.

Webbo

Title: Re: Australian GST
Post by: longbow on August 02, 2018, 03:30:40 am
Not happening yet it seems. Hattons did not add GST to my three orders since 1 July and as of now it is not being added during checkout.
Title: Re: Australian GST
Post by: dannyboy on August 02, 2018, 04:16:24 am
Sounds like the 'system' has not yet caught up with the 'intention'! Change the subject quick!  ;)
Title: Re: Australian GST
Post by: Graham on August 02, 2018, 05:07:27 am
when I was working we received a lot of shipments via FedEx and DHL, we always had to pay the GST on the shipments before they were released by the shipper to us. So I would guess these guys will charge the GST before they release any shipment to the end user.

cheers
Graham
Title: Re: Australian GST
Post by: longbow on August 02, 2018, 06:26:27 am
Couriers ("transporters") are required to collect GST (plus any customs duty and clearance fees) on imported shipments over $1000 in value. That situation is unchanged. Under the new rules the onus for collecting GST on sub-$1000 imports falls entirely on the supplier and not the transporter, so there should be no charges at the Australian end.
Title: Re: Australian GST
Post by: njee20 on August 02, 2018, 08:05:31 am
Once Hattons charge it what’s the mechanism for transferring it to the Australian government? Otherwise it seems pointless, or is that the point and it’s purely to incentivise ‘buying locally’? I imagine they’re happy to resist implementing it as it certainly won’t boost sales and sounds like a faff.
Title: Re: Australian GST
Post by: longbow on August 02, 2018, 08:53:43 am
Overseas retailers are being asked to register for and collect GST in the same way as an Australian business. Certainly it's cheeky to impose tax collection upon a foreign retailer, but probably better for them than the delays and extra costs that would arise if their deliveries were taxed at the Australia end.
Title: Re: Australian GST
Post by: njee20 on August 02, 2018, 09:34:27 am
It's certainly an interesting mechanism. Is there a precedent elsewhere for that? I'm not aware of one. You generally obviously pay sales tax in the local currency, or it's collected upon arrival in the destination country.

Certainly not surprised Hattons aren't rushing to charge it, it rather seems that everyone wins, except the Australian government, who have virtually no jurisdiction to influence the retailers!
Title: Re: Australian GST
Post by: longbow on August 02, 2018, 10:01:15 am
I don't think there is a precedent and it's not surprising that several large online retailers objected to it. But the alternative would be extra delay and costs of collecting GST at the Australian end, which would arguably be worse for their business. The threat of imposing that on a case-by-case basis will probably be enough to persuade most overseas retailers to comply.
Title: Re: Australian GST
Post by: njee20 on August 02, 2018, 11:28:04 am
Well, no, the alternative is the Aussie government not trying to be greedy by charging tax on low value products bought overseas ;)

Will certainly be interesting to see how it develops.
Title: Re: Australian GST
Post by: longbow on August 04, 2018, 03:49:35 am
It's worth noting that Hattons postage charges to Oz are unusually low. Postage on a Farish 3-wagon pack (142g) costs GBP3.50 at Hattons but GBP8 at Model Railways Direct and GBP9 at Kernow (though that covers up to 1kg). So once Hattons start charging GST they will likely still be competitive on packages up to GBP50 or so.
Title: Re: Australian GST
Post by: woodbury22uk on August 04, 2018, 09:37:13 am

My fear is that this GST collection business will morph into a situation in which customs agents will do the collecting on arrival in Australia. Then, with their charges as well we may be liable for a great deal more than the 10% impost.

Webbo

Which is exactly the case for imports to the UK, with the carrier usually acting as agent. The lower limit in the UK is £15 landed value, so including the shipping charge. Royal Mail have hitherto not presented many low value shipments, but it now looks like a profitable activity, especially when there is no exemption for goods imported from the European customs union after the UK withdraws.
Title: Re: Australian GST
Post by: Stuart Down Under on August 05, 2018, 02:05:20 am
Hi longbow

According to a notification on their website, Hattons has been charging GST since 1 July:

https://www.hattons.co.uk/NewsDetail.aspx?id=313 (https://www.hattons.co.uk/NewsDetail.aspx?id=313)

Of course, their stated intention might not match what is actually happening yet.

Webbo

That link to Hattons now says;

N/A
Monday, June 18 2018
by Thomas Newhouse

Maybe they have done their sums and decided that they are below the threshold?

 :hmmm:
Title: Re: Australian GST
Post by: longbow on August 05, 2018, 02:35:38 am
Hattons and Rails have already confirmed that they exceed the registration threshold. At a guess, they are unable to levy GST until they are registered and there is a logjam of overseas applications at present. So I would assume this is only a brief respite.
Title: Re: Australian GST
Post by: njee20 on August 05, 2018, 07:36:50 am
Seems fairly unlikely, but that certainly looks like a statement of intent! I imagine it would be extremely difficult to disprove.
Title: Re: Australian GST
Post by: Stuart Down Under on September 10, 2018, 12:04:26 am
Yet another Hattons order today - still no GST. I keep adding a few higher cost accessories, like decoders and easi-shunts, to build up stock against future tax increases.

I also recently placed an order direct with Langley, and that was GST-free too! I don't expect that Langley is ever likely to exceed the $75,000 threshold!

 :whistle:
Title: Re: Australian GST
Post by: Graham on September 10, 2018, 12:43:29 am
i had a shipment from Rails last week, and still no GST. Thankfully.
Title: Re: Australian GST
Post by: longbow on September 10, 2018, 01:18:49 am
Ditto. The only UK model rail retailer charging GST so far seems to be eBay, including the Rails eBay store.
Title: Re: Australian GST
Post by: Bobbyvabc on October 03, 2018, 12:58:58 pm
I just received a shipment from Hattons today 3/10/18 and was not charged GST, but i'm not complaining and keeping quiet while it lasts.
Regards to all Down Under,
Bobbyv : ;D
Title: Re: Australian GST
Post by: Stuart Down Under on October 03, 2018, 01:44:46 pm
I'm not complaining either! another £200 order today with no GST! Shhhhh.
 8)