Ebay charging 'Import Charges'

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mattwnz

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#277390 12-Oct-2020 18:26

I am looking at buying some materials for repairing a sofa from the UK via the stores online store on ebay. The product costs 125 pound, and the shipping comes to 125 pounds as well. So about $500NZD Not cheap but noone in NZ sells the parts I need. I have checked the Whats my duty calculator, and it says that there wouldn't be any duty on it as it is under $1000. However ebay also want to charge me 50 pounds, or (approx. $100) in import charges. I have read from other people that this is something to do with ebays 'Global Shipping Program' that the seller is using, but doesn't provide a way not to be charged it . But if customs aren't collecting any duty, who is actually getting this $100 dollars? Anyone else come across this, and know a way around it?

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#2583286 12-Oct-2020 18:31

GST is still payable, but it's up to the retailer to collect it. With that said, the figure you've quoted is 20%, so it's more than GST. I don't know where the rest of the money is going.

SirHumphreyAppleby

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#2583287 12-Oct-2020 18:32

Our government, in their infinite arrogance, has decided that online retailers of market places overseas are somehow magically required to comply with New Zealand law, and demands that anyone selling over $60k worth of goods to New Zealand must pay GST. If the transaction amount is over $1000, they are not required to collect this, and instead it is collected (along with exorbitant fees for Customs and Biosecurity) on entry if they choose not to.

And no, there is no way around it other than to shop elsewhere, either from a company that doesn't meet the threshold, or simply (and correctly) ignores it.

One day there will be unilateral agreements allowing governments to extract their pound of flesh, but until then, it's sort of an honesty system.

tchart

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#2583309 12-Oct-2020 19:03

Approx $100 or $100? Was the total $500 or approx $500?

I've had no issues buying from eBay. Yes they collect GST, no they shouldn't be collecting duty or another other taxes.

So for $500 you'd be paying $75 in GST.

Same on Amazon etc.

And just remember that they have lifted the threshold for duty to $1000. So be grateful you don't have to pay GST+duty. I see that as a fair compromise.

Having said that VAT in the UK is 20% so make sure they aren't accidentally charging VAT.

mattwnz

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#2583335 12-Oct-2020 21:12

Thanks. The figures are within a dollar. It looks like the charge could be VAT as I am buying it from the UK.

jpoc

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#2583373 12-Oct-2020 23:18

mattwnz: Thanks. The figures are within a dollar. It looks like the charge could be VAT as I am buying it from the UK.

From what you have described, you are probably being charged UK VAT and NZ GST.

The extra charge that you get from ebay is NZ GST and the original $500 quite likely includes UK VAT.

waikariboy

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#2583381 13-Oct-2020 06:28

side question, I don't understand why we pay for GST on Ebay items when I dont pay GST on trademe items.

Balm its gone!

SirHumphreyAppleby

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#2583384 13-Oct-2020 06:54

waikariboy:

side question, I don't understand why we pay for GST on Ebay items when I dont pay GST on trademe items.

TradeMe charges GST for sellers based overseas. Local sellers may or may not be charging GST (included in the auction price), depending if they are registered or not.

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sbiddle

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#2583387 13-Oct-2020 07:16

What are the actual item(s)? If you're paying exactly 20% my assumption would be you've got something that is eligible for duty so are therefore paying 15% GST and 5% duty.

Duty is charged for goods at any point, not only if it's over $1000

mattwnz

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#2583719 13-Oct-2020 16:36

sbiddle:

What are the actual item(s)? If you're paying exactly 20% my assumption would be you've got something that is eligible for duty so are therefore paying 15% GST and 5% duty.

Duty is charged for goods at any point, not only if it's over $1000

It is a roll of rubber strapping, which will be used to repair some chairs, where the existing rubber strapping under the cushions has gone hard from age and split. None of the retailers I have tried that sell this sort of thing in NZ stocks it. So guessing it falls under the furniture category. Not sure if there is any duty on that or not.

sbiddle

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#2583728 13-Oct-2020 16:59

mattwnz:

sbiddle:

What are the actual item(s)? If you're paying exactly 20% my assumption would be you've got something that is eligible for duty so are therefore paying 15% GST and 5% duty.

Duty is charged for goods at any point, not only if it's over $1000

It is a roll of rubber strapping, which will be used to repair some chairs, where the existing rubber strapping under the cushions has gone hard from age and split. None of the retailers I have tried that sell this sort of thing in NZ stocks it. So guessing it falls under the furniture category. Not sure if there is any duty on that or not.

Sounds like something that would have 5% duty on it, therefore what eBay are charging is correct.

You can view all duty rates here https://www.customs.govt.nz/business/tariffs/working-tariff-document/

nztim

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#2583821 13-Oct-2020 18:28

Makes sense for ebay/amazon/aliexpress to collect any applicable duty/gst otherwise you have your goods held up and have to pay it to customs anyway

Any views expressed on these forums are my own and don't necessarily reflect those of my employer.

tchart

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#2583835 13-Oct-2020 19:12

If it's under $1000 incl shipping then you do not pay duty.

From the what's my duty site;

Customs will not collect GST, duty or charge an Import Entry Transaction Fee (IETF) on goods valued $1000 or less, unless the goods are part of a large consignment.

sbiddle

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#2583939 13-Oct-2020 21:25

tchart: If it's under $1000 incl shipping then you do not pay duty.

From the what's my duty site;

Customs will not collect GST, duty or charge an Import Entry Transaction Fee (IETF) on goods valued $1000 or less, unless the goods are part of a large consignment.

Correct. But that doesn't mean what you think it does.

GST is applicable (and duty *may* be applicable) on orders under $1000 when sold by a retailer who is legally required to be GST regustered for orders shipped to NZ.

Bung

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#2584033 14-Oct-2020 03:04

mattwnz:

It is a roll of rubber strapping, which will be used to repair some chairs, where the existing rubber strapping under the cushions has gone hard from age and split. None of the retailers I have tried that sell this sort of thing in NZ stocks it. So guessing it falls under the furniture category. Not sure if there is any duty on that or not.

You're possibly looking in the wrong places. Try

https://www.mollies.nz/category/upholstery-elastic-webbing.html

or

https://www.furnco.co.nz/category-s/158.htm

ratsun81

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#2584140 14-Oct-2020 10:11

You should be able to get something like that from an upholsterer. Or they would be willing to make it for you.

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