Australian GST

[Graham]

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

[longbow]

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.

[njee20]

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.

[longbow]

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.

[njee20]

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!

[longbow]

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.

[njee20]

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.

[longbow]

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.

[woodbury22uk]

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.

[Stuart Down Under]

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

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?

[longbow]

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.

[njee20]

Seems fairly unlikely, but that certainly looks like a statement of intent! I imagine it would be extremely difficult to disprove.

[Stuart Down Under]

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!

[Graham]

i had a shipment from Rails last week, and still no GST. Thankfully.

[longbow]

Ditto. The only UK model rail retailer charging GST so far seems to be eBay, including the Rails eBay store.