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Old 06-30-2018, 12:13 PM   #1
Synchro909
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Unhappy Australian barners should read this

Although this is for Australian barners, I’ll explain a little so it makes some sense to others. As of July 1, the Australian government is clamping down on tax avoidance mostly aimed at multinational companies that move money around the world from one tax haven to another to avoid paying tax on profits made in the country where they were earned. This will have an impact on any purchases made from US vendors. We all know that Amazon US will no longer ship to Australia because they refuse to collect the 10% GST (Goods and Services Tax).
I have just been speaking with the owners of one of the more reputable Model A vendor companies and he said that to continue selling to Australians, he has to register with the Australian Government and do a return and send $ each month. At the moment, he has suspended sales to Oz and is evaluating whether or not it will be worth their while to set things up so he can collect the tax and submit it to the govt. It seems we have been caught up as collateral damage in a bigger battle. I expect the other vendors will be doing the same. Depending on what they each decide, maybe the days of being able to buy parts for our cars out of the US might be over. That would be a disaster for us.
I’m NOT being political here, I’m not asking anybody to take any action, I’m just stating the facts.
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Old 06-30-2018, 01:26 PM   #2
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Default Re: Australian barners should read this

How would this impact purchase and shipment from a private seller, e.g., the Fordbarn Swap Meet?
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Old 06-30-2018, 02:00 PM   #3
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Default Re: Australian barners should read this

Quote:
Originally Posted by Synchro909 View Post
I have just been speaking with the owners of one of the more reputable Model A vendor companies and he said that to continue selling to Australians, he has to register with the Australian Government and do a return and send $ each month. At the moment, he has suspended sales to Oz and is evaluating whether or not it will be worth their while to set things up so he can collect the tax and submit it to the govt. It seems we have been caught up as collateral damage in a bigger battle.

Here's the new law:

Businesses with sales (subject to Australian GST) of AUD 75000 or more to consumers in Australia within a 12 month period, will need to register with the Australian Taxation Office (ATO), collect GST at the point of sale and remit that GST to the ATO.

I wonder if Bert's, Snyder's, Mike's and Bratton's all sell more than AUD 75000 a year to Aussie consumers??? This law may benefit smaller USA vendors that at the moment don't often sell to Aussies.

No need for panic I think even if all the vendors ban Aussies. An Aussie could for example have the vendor ship to me in the USA and I could re-ship the items to Australia. I, and probably others here, would be happy to help out.
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Old 06-30-2018, 02:06 PM   #4
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Default Re: Australian barners should read this

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How would this impact purchase and shipment from a private seller, e.g., the Fordbarn Swap Meet?

No impact on the private seller in the USA. When sending a parcel to Australia you have always needed to declare the value of what you're sending on USPS Customs forms. The Aussie receiving the parcel will now need to pay tax.
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Old 06-30-2018, 03:28 PM   #5
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Default Re: Australian barners should read this

You may need to purchase from New Zealand dealers of which there are 3 , myself being one ,Happy to help our cuzzies if we can , Be home from the MAFCA meet July 5th, Derek Antique Ford Parts , Nelson,NZ
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Old 06-30-2018, 04:40 PM   #6
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Default Re: Australian barners should read this

I can see some vendors going along with the new regime and others not. Those who do will reach the threshold, probably easily and although it will be a hassle, it would be worthwhile to them as they would pick up sales from the vendors who donít register.
Iím in Melbourne and I suspect this will benefit our local supplier who does a good job anyway.
M2M made an offer and I can see another way around this but it involves a little work to set up. An Aussie would need a US address, maybe a freight consolidator for the vendor to send stuff to. If that isnít enough, maybe we would need a US bank account.
The point is, things are going to be more difficult from here on.
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Old 06-30-2018, 07:50 PM   #7
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Default Re: Australian barners should read this

I would wait and see what happens and see how the mess pans out.
So our govt wants retailers from other countries to collect tax for them? Yeah, right.

I got an email from one US mail forwarder, and not the other, to say they will be collecting the tax.
The GST is only supposed to apply to new stuff.
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Old 06-30-2018, 08:16 PM   #8
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Default Re: Australian barners should read this

Well i'll buy your items,put them on a vehicle. and then sell as used parts.Ship to you as a private seller.!?
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Old 06-30-2018, 08:38 PM   #9
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Well i'll buy your items,put them on a vehicle. and then sell as used parts.Ship to you as a private seller.!?
It's only %10. However, having said that, in the past it only applied to things over $1000.

I got caught out once, a few dollars over, by customs. They then applied the %10 to the item and the shipping. The shipping was US$250. So cost me $240 to get it out of customs.

Applying it to shipping here is the killer.
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Old 06-30-2018, 09:23 PM   #10
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Default Re: Australian barners should read this

Here's some good info on the situation:

http://theconversation.com/levying-g...involved-98763


This is also interesting:

Consequences for non-compliance

The compliance treatments we use vary according to the type of behaviour you exhibit. We group business behaviours into categories and apply an appropriate approach to each of those categories.
If you choose not to comply with the law, the Commissioner of Taxation can take actions including:
  • registering you for GST
  • imposing an additional 75% administrative penalty, which then becomes legally payable
  • intercepting funds from Australia that are destined for you
  • registering the debt in a court in your country
  • requesting the taxation authority in your country to recover the debt on our behalf.


Taken from:

https://www.ato.gov.au/Business/Inte...rnoncompliance

I wonder if the US govt. and US courts would assist the Oz govt. in forcing US companies to collect Oz tax?
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Old 07-01-2018, 02:34 AM   #11
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Default Re: Australian barners should read this

>>I wonder if the US govt. and US courts would assist the Oz govt. in forcing US companies to collect Oz tax?

I wonder how much help will come from the Chinese etc.?

So we are the first cab off the rank.

"Australia is the first jurisdiction to move to adopt a vendor-platform collection model and many jurisdictions are poised to follow suit (the European Union, Switzerland and New Zealand have all announced similar reforms)."
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Old 07-02-2018, 04:33 AM   #12
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Default Re: Australian barners should read this

This comes on top of the scam asbestos rules which effectively ban Model As from being imported into Australia. See:

https://www.hemmings.com/blog/2017/0...omment-page-1/

https://www.carsguide.com.au/overste...stos-ban-63989

http://www.abc.net.au/news/2018-03-2...esting/9579142
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Old 07-02-2018, 05:57 AM   #13
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Default Re: Australian barners should read this

It is not the only thing going on with our customs

http://www.abc.net.au/news/2017-05-0...ficers/8504944

This is irreplaceable history of our country.
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Old 07-02-2018, 10:21 AM   #14
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Default Re: Australian barners should read this

May be worth buying from Canada. There a a few good parts suppliers here. Takes about the same time as getting things from the states. And they have Canadian parts. So a win/win. JP
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Old 07-03-2018, 12:00 AM   #15
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May be worth buying from Canada. There a a few good parts suppliers here. Takes about the same time as getting things from the states. And they have Canadian parts. So a win/win. JP
That would make no difference. The Canadian vendor would have to collect the tax just like any other.
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Old 07-03-2018, 12:36 AM   #16
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Default Re: Australian barners should read this

Dear oh dear. I'm just about to retire and was looking for a simple life. Always some grotty government department to make waves.
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Old 07-03-2018, 01:44 AM   #17
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Default Re: Australian barners should read this

Arnold, it,s not working yet,I just got a pile of stuff ,bearings etc from the USA,no drama,straight through..
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Old 07-03-2018, 05:53 AM   #18
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Default Re: Australian barners should read this

Laurie, It only applies to orders placed after 1st July 2018. Your order would have been processed prior to 30th June. But yes, there are a couple of suppliers that have ceased shipments to Australia. A frield has spoken to the ATO in Camberra just yesterday and explained the problem to them. According the the person he spoke to they " never expected USA companies to cease shipping to Australia because of the extra paperwork involved and compliance issues". Not to mention the extra costs incurred by the USA company in converting the funds to Australian dollars and remitting same. they simply expected Companies to become Australian Tax Collectors for the ATO. Dave
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Old 07-03-2018, 07:20 AM   #19
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Default Re: Australian barners should read this

You may wish to submit an enquiry to So Mo via the Aust govt. web site asking what we are supposed to do when businesses stop sending to Australia.

I just did.
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Old 07-03-2018, 10:19 AM   #20
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Default Re: Australian barners should read this

[QUOTE=updraught;1646066]It's only %10. However, having said that, in the past it only applied to things over $1000.

Never take that attitude. Once they open the door and stick their foot in so you can't shut it, they are never going to go away. You will see more and more tax. This is just the start.
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