Featured Goods and Services Tax (Value Added Tax) as it applies in Australia to the purchase of Ancient coins

Discussion in 'Ancient Coins' started by Topcat7, Aug 12, 2018.

  1. Topcat7

    Topcat7 Still Learning

    I have just put the 'phone down from speaking with the 'Australian Taxation Office'.
    As of 1st July, 2018, ALL eBay transactions (except exempt items) will have the additional tax applied, (whereas previously it only applied to items with a value/sale price of A$1,000 or more). This is in addition to any 'Buyer's Premium', 'Commission', 'Postage & Handling', 'Currency Conversion', 'Paypal Fees', and 'Credit Card' charges that might already be applied to any purchase.
    I queried my G.S.T. charge on my recent coin purchases as it was my understanding that as the coins are (obviously) 'second hand' then the G.S.T. did not apply to them, and also as the seller was an overseas business and not 'registered' with the Australian Taxation Office, they would not be able to collect/remit Australian taxes.
    I was informed that any business within Austrlaia that transacts sales of A$75,000, (or more annually in Australia) must charge the G.S.T. (Now it gets interesting.)
    Paypal has (now) registered in Australia, and Paypal's business model (apparently) is to purchase the item, on your behalf, from the seller (through eBay), and to 'on-sell' it to you. Therefore even though the (individual) sellers sells less than A$75,000 worth of sales in Australia, each year, because Paypal acts as an 'intermediary' and puts themselves between the buyer and the seller, then Paypal 'sells' MORE than A$75,000 and must charge you G.S.T. on all of those (International) sales/purchases. If we don't use Paypal we are (might be) able to avoid the G.S.T.
    As I prefer to use Paypal it looks like my 'coin purchase budget' just took a 10% 'hit'.
    I am unsure how this Tax works in your country. Please make your own enquiries.
    Here are the seller's photos of my recent 'Celtic' purchases.

    CELTIC: Northeast Gaul: The Suessiones. c.50-30 BC. Potin, Stylized head R. with curling locks of hair around the face / Stylized Boar R. above pellet-in-ring, annulet to L., five pellets and pellet-headed crescent below. D&T 531A;cccbm III 446; de la Tour 7905
    s-l1600 (7)a.jpg s-l1600 (8)a.jpg

    CELTIC: Northeast Gaul: The Leuci, c.120-80 BC. Potin, Diademed head L. / Boar standing L. Bow below, D&T 225; Scheers 186, cccbm 398-404

    s-l1600 (5)a.jpg s-l1600 (6)a.jpg
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  3. Bing

    Bing Illegitimi non carborundum Supporter

    Taxes - Ugh! But nice coins @Topcat7
    Topcat7 likes this.
  4. R*L

    R*L Well-Known Member

    Thanks for the heads up Topcat. NZ currently has a lower limit before GST is payable ($400NZD), but is contemplating putting something similar to what you have described in place - i.e. it sounds like GST will be collected on everything so long as the vendor does more than $60,000NZD P.A. in trade with NZ (but at our rate of 15%. Ugh. (Not to mention our steadily collapsing foreign exchange rate!)).

    I can't imagine most (any?) European or US dealers would do more than the $60,000NZD P.A. limit in trade with NZ, but I do almost exclusively use PayPal and didn't realize PayPal operated the way you describe. If that's correct we may have to stop paying by PayPal and find other safe ways to pay the dealers directly!
  5. Valentinian

    Valentinian Supporter! Supporter

    I am a fan of TransferWise for payments from one country to another. Not only are their fees only about 1/2%, they use the published exchange rate, not a rate with an extra 2% in their favor. Also, it is a direct-deposit service, so there are not "bank transfer" fees.
  6. Topcat7

    Topcat7 Still Learning

    @Valentinian I looked at "Transferwise" but don't they have a 'minimum' transfer of $2,000?
  7. CoinBlazer

    CoinBlazer Professional Teenager

    2 things we cannot avoid
    death and taxes
  8. Ancient Aussie

    Ancient Aussie Supporter! Supporter

    I've bought four coins from overseas since July 1st, one from Vienna auction, one from MA-Shops and two from Vcoins using Paypal and none of the seller's or Paypal has asked for GST. I have received three and waiting for one......I better shut-up while I'm ahead.
    Last edited: Aug 13, 2018
  9. Topcat7

    Topcat7 Still Learning

    @Ancient Aussie
    Well, you're a lucky man! I would buy up big while I could if I was you.
    (The overseas seller doesn't charge the G.S.T. - only Paypal does.)
    When I go into my Paypal account I find that ALL of my overseas purchases (9x since 3rd July 2017) through paypal, have triggered a separate charge called "eBay Australia & New Zealand Bank Proprietary Ltd payment" (for exactly 10% of the initial charge - including postage). It is NOT added to the invoice but charged separately.)
    There is no 'extra' charge when goods are purchased from an Australian seller (new or otherwise).
  10. Ancient Aussie

    Ancient Aussie Supporter! Supporter

    I thought I was ha ha, I checked and definitely no extra separate GST charge, I read a while ago where most seller's were not going to participate in the tax collection only Ebay. You will probably find that even if you bought from Ebay with a credit card the same message would appear, have all your nine buys been through Ebay?
  11. Topcat7

    Topcat7 Still Learning

    Last edited: Aug 13, 2018
  12. Topcat7

    Topcat7 Still Learning

    I think that you are looking in the wrong place. It has nothing to do with the 'Seller' or with 'eBay'. They don't have anything to do with it.
    Paypal put through a separate charge (without notifying you) for the GST which you don't know about until you check your account on their website.
  13. TIF

    TIF Always learning. Supporter

    Wow, that is interesting and I'm sorry you're being hit with more taxes :(. I never thought of PayPal operating as your government describes.

    @Valentinian, thanks for the reminder about Transferwise. I keep forgetting to use it. @Topcat7, I just looked at Transferwise and I didn't see anything about a $2000 minimum. While I was watching their live display I saw various transfers of far less.
    Topcat7 and Nicholas Molinari like this.
  14. Ancient Aussie

    Ancient Aussie Supporter! Supporter

    That's what I just checked, my Paypal account and the last four purchases were the exact amount I paid for coin plus postage.
  15. Valentinian

    Valentinian Supporter! Supporter

    No, they don't. I have recently used it for as little as $104 and I am unaware of a lower limit.
    R*L and Topcat7 like this.
  16. Severus Alexander

    Severus Alexander Blame my mother. Supporter

    Transferwise is definitely the way to go, and no, they don't have any minimum. For small amounts the fee & exchange can sometimes add up to more than Paypal, but you can avoid even that difference if you carry an account balance with them in various currencies. (You can have your own bank account numbers in USD, euros, and GBP, both for sending and receiving.)
    R*L and Topcat7 like this.
  17. Topcat7

    Topcat7 Still Learning

    @TIF @Valentinian @Severus Alexander -
    Thanks for the confimation.
    I may have had Transferwise mixed up with Worldfirst and a comment there of $2,000 Minimum. Something to look into for sure. Thanks again.
    Severus Alexander likes this.
  18. Valentinian

    Valentinian Supporter! Supporter

  19. kaosleeroy108

    kaosleeroy108 The Mahayana Tea Shop & hobby center

    Ghat kicks bricks
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