Question
http://www.theaustralian.news.com.au...4-2702,00.html
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I've wondered for some time whether UK and Australia and other countries would try to force international online sellers to collect their VAT or GST taxes and other duties or fees even when the seller has no point of presence within their country. I'd presume this to be one of those open debates with both sides thinking they are correct waiting till some courts force the issue, with treaties and international law becoming a part of the issue. There is a lot more than just their local taxes at stake. There is also their local laws and whether those could also be enforced on international sellers. Until these issues are resolved, I'd think it would may be a good idea to have seller terms that specifically state the buyer is liable directly for those taxes, duties, and fees and that the seller is not collecting or paying them and that the seller does not have a point of presence anywhere other than x city, state, country. The opinion of an good international law attorney might be worthwhile about now...
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"As a foreign entity, eBay International is not required to be registered for GST and therefore does not have an ABN (Australian Business Number)," the company's Australian website states.
But some sellers are understood to have assumed that invoices for fees and charges sent to them by eBay had included GST, and had made claims to the ATO to recoup the GST amounts.
I have never quite understood how a company can operate and employ people in Australia, and yet not have an Australian Business Number for that part of the business. It appears that the Australian Tax Office either doesn't care, or endorses this offshore operation of a (clearly) Australian portion of a business.
I have never made the assumption that GST applies to any part of the Ebay fees (although I think it should for Australian listings on the Australian site), and because I have been registered on the US site since 1997, I have always worked on my Ebay fees having no GST component.
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I've wondered for some time whether UK and Australia and other countries would try to force international online sellers to collect their VAT or GST taxes and other duties or fees even when the seller has no point of presence within their country.
Australian GST does not apply to international (export) sales. If the GST or other taxes are applicable on imported goods, they are charged to the recipient, and usually need to be paid before delivery is taken on the goods. They are effectively only applicable once they cross our borders, so the Australian government would never request that foreign sellers collect their tax, and besides which, would have great difficulty in actually collecting the collected taxes from foreign citizens if they chose to just keep such monies. In other words, I don't think you need to fear such a thing happening.
Kind Regards, Kevin
Answer
Originally Posted by Kevin_T
Australian GST does not apply to international (export) sales. If the GST or other taxes are applicable on imported goods, they are charged to the recipient, and usually need to be paid before delivery is taken on the goods. They are effectively only applicable once they cross our borders, so the Australian government would never request that foreign sellers collect their tax, and besides which, would have great difficulty in actually collecting the collected taxes from foreign citizens if they chose to just keep such monies. In other words, I don't think you need to fear such a thing happening.
Kind Regards, Kevin
Hahahaha!
"Dear Buyer, In addition to the auction price and shipping, I will be additionally collecting Australian GST on behalf of your government. Please add $_____ to your payment."
Buyer: "But I already paid the GST to the seller!"
Australian Gov't: "You are not authorized to collect GST on our behalf, please forward the funds immediately and cease this activity."
Me: "Make me!!!! "
No... I don't envision them starting that up!
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The bleeding begins...
http://www.p2pnet.net/story/11649
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The Australian head of PESA is pushing for Ebay to pay tax in Australia:
http://australianit.news.com.au/arti...E15306,00.html
Phil Leahy, Australian head of the Professional eBay Sellers Association, said eBay should be registered as a local business for tax purposes.
"It's only fair that eBay be paying tax in this country," he said. "The law has to be examined."
Mr Leahy said the association had taken legal advice on GST issues and had discussed the matter with the Australian Tax Office.
"We are taking steps to get some clarification," he said.
Mr Leahy said he was confident eBay's Australian operation would follow the lead of its British counterpart, which was forced by Britain's Inland Revenue Service to pay Value Added Tax.
I'm sure PESA USA will be impressed by an Aussie PESA member rocking the boat....
Kevin
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I wonder what his proposal is for redirecting those funds back into the system? Think they'll go to improving the fiber optics, satelites or othewise? Likely go to wages of adminstrators...
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http://www.telegraph.co.uk/money/mai...9/cmebay19.xml
Mystery Shoppers....
http://www.mystiqueshopper.com/