Online Tax july 2016 ?

[mik]

Just thought i would bring up the online tax that is supposed to be coming into effect mid 2016, i believe on things like ebay, etc, how will this effect buying bits and pieces for our cars from over seas ?

Thoughts ?

[peaterj]

Afaik it doesn't start until July 2017.

[olfella]

I would love to know how they expect O/S suppliers to act as tax collectors. Like they may collect an extra 10% but passing it onto a different country's tax man is another story.

[mik]

yes i was wondering how they would collect also .

[Myluckyday]

GST to apply to all imports into Australia from July 2017


Read more: http://www.smh.com.au/federal-politi...#ixzz3jaADXVoV


All goods bought from overseas will face a 10 per cent goods and services tax from July 2017 under a landmark deal agreed to by state and territory treasurers.

Big businesses such as Amazon, Apple and Netflix will be asked to collect the tax. Mr Hockey said he expected most to agree. Apple already voluntarily collects Australian GST on sales through its iTunes store.

"Mr Hockey told us about 50 internet sales companies make up the vast majority of internet sales. Apparently many of them are prepared to do it, but it will take a long time to get this right, if ever," he said.

- - - - - - - - - -

So, I reckon if you are a small company selling into Australia you could potentially 'fly under the radar' for some time.

The ones to look out for are the companies who charge YOU the GST but pocket it for themselves!
.

[supershifty]

I'll be the devils advocate - ebay will employ another charge above GST for collecting the tax.

Cheers!

[mik]

I wouldn't like to bet against you on that one Supershifty .

[GasoLane]

According to that article "Big businesses such as Amazon, Apple and Netflix will be asked to collect the tax."

LOL... They'd be better off asking companies like those to pay their full share of company Tax in the first place.

[Adamz Ghia]

How will they enforce this on companies that don't have Australian operations?

[cheap]

Another tax, the consumer gets to take it up the *** again.

Gerrry Harvey, has been pushing for this tax, THANKS FOR NOTHING GERRY!

[bobthebilda]

Originally Posted by cheap

Another tax, the consumer gets to take it up the *** again.

Gerrry Harvey, has been pushing for this tax, THANKS FOR NOTHING GERRY!

There was alot of self interest in the push to have it added, but i dont think its going to change things too much. The biggest tax was never the GST, but the "Australia" tax. Compare items you can buy overseas to the same product that you buy in Australia, and there is often much more than a 10% price difference.

[Myluckyday]

Originally Posted by bobthebilda

There was alot of self interest in the push to have it added, but i dont think its going to change things too much. The biggest tax was never the GST, but the "Australia" tax. Compare items you can buy overseas to the same product that you buy in Australia, and there is often much more than a 10% price difference.

There is quite a bit to the truth that we pay more in Australia.

A lot of the popular software, itunes etc are more expensive in Australia.

[GasoLane]

I just bought 4 H7 globes from the UK for $102.76 (2 twin packs) with free shipping

Stupor Cheep have them for $99.99 a pair (1 twin pack)

So I'd be quite happy to add 10% to that

[mik]

Originally Posted by GasOLane

I just bought 4 H7 globes from the UK for $102.76 (2 twin packs) with free shipping

Stupor Cheep have them for $99.99 a pair (1 twin pack)

So I'd be quite happy to add 10% to that

Some years ago an old friend of the family that used to work in electric motors said we pay a 33 % mark up on electrical items, i dont know how accurate that is these days , but it would not surprise me if that was still the case.

[bobthebilda]

Originally Posted by mik

Some years ago an old friend of the family that used to work in electric motors said we pay a 33 % mark up on electrical items, i dont know how accurate that is these days , but it would not surprise me if that was still the case.

What mark up are you talking about (retail markup or having to buy in Australia Markup)? To show you some of the markups currently out there, I import and sell online, some stuff that you see in some mid range retailers around Australia. After import, I add approx. 60% onto the price, and that is my margin. The mid range retailers sell a very similar product, for approx. twice the price that i sell them for. I assume they have better buying power, so are able to get the product cheaper than I am, so i reckon they are marking up the price by approx. 3 1/2 times. Yet if you look at the financial results of some of these companies, they are reporting profits which equate to only about 6% of total sales. I always visit competitiors stores etc, and am amazed by the amount of people that still buy at these prices, because they are not computer savvy, or have a need to see and feel a physical product. 10%wontmake a difference to those who know what todo.

[mik]

Originally Posted by bobthebilda

What mark up are you talking about (retail markup or having to buy in Australia Markup)? To show you some of the markups currently out there, I import and sell online, some stuff that you see in some mid range retailers around Australia. After import, I add approx. 60% onto the price, and that is my margin. The mid range retailers sell a very similar product, for approx. twice the price that i sell them for. I assume they have better buying power, so are able to get the product cheaper than I am, so i reckon they are marking up the price by approx. 3 1/2 times. Yet if you look at the financial results of some of these companies, they are reporting profits which equate to only about 6% of total sales. I always visit competitiors stores etc, and am amazed by the amount of people that still buy at these prices, because they are not computer savvy, or have a need to see and feel a physical product. 10%wontmake a difference to those who know what todo.

i when i say mark up i think he was meaning government tax type mark up , sorry my bad.