Australian Goods and Services Tax (GST) added to my purchase by Paypal.

Aussie47
Contributor
Contributor

Why is Paypal now adding GST (10% of purchase price) to my EBay purchase from a small overseas supplier? There has been no publicity about this by either Ebay or Paypal. Just started happening. If Paypal are now a tax agent collecting for the Australian Tax Office I thought they would only collect the GST for purchases from a large overseas suppliers with big turnover and registered with our Australian Tax Office. If I am going to make purchases from small overseas suppliers I would like to know on the EBay listing if that supplier is registered to charge GST  and if GST is payable on the item I'm purchasing. What do others think?

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2 REPLIES 2

izapas
Contributor
Contributor

From the 01 July GST is charged on all items purchased outside Australia. The amount is normally collected by the marketplace ie eBay/ etsy etc

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izapas
Contributor
Contributor

eBay, etsy and other marketplaces have agreed to collect this on the sellers behalf and forward on. Amazon has not and now has decided not to allow sales to AU buyers from outside AU as they do not want to collect and remit.

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