GST on Audible.com.au

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Geektastic

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#215412 26-Jun-2017 15:38

I just had an email advising me that 10% GST will be applied to new memberships as a result of impending changes to Australian GST relating to the import of digital services.

I contacted them and had a long online chat. The law change clearly states they must charge "Australian consumers".

I pointed out that I am not an Australian consumer. I never have been and to the best of my knowledge never will be. This appeared to cause some confusion. The cunning plan seems to be "whack 10% on everything regardless and if we end up with a bill for less than we take, we'll trouser the extra" as far as I can tell!

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#1807063 26-Jun-2017 15:59

SO if they don't need to charge NZ customers, then they don't need to pay that to the Oz government, so they get to pocket that extra 10%? That doesn't sound very fair. I had a similar problem when buying from Apples online store many years ago, before they had a NZ store. They wanted to charge me 10% GST for a quicktime licence. They did end up refunding me the 10% in the end.

Wiggum

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#1807068 26-Jun-2017 16:07

I'm more surprised to hear that the Aussies only pay 10% GST.

Pack the bags honey! We emigrating to Aus.

old3eyes

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#1807081 26-Jun-2017 16:25

Wiggum:

I'm more surprised to hear that the Aussies only pay 10% GST.

Pack the bags honey! We emigrating to Aus.

When I was there in 2015 the state governments were lobbying the Fed Gov to increase it to 15% as they seem to get a fair amount of the GST collected in each state.. Funny thing is that the retailers thought it was a good idea..

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wellygary

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#1807088 26-Jun-2017 16:36

Geektastic:

I just had an email advising me that 10% GST will be applied to new memberships as a result of impending changes to Australian GST relating to the import of digital services.

I contacted them and had a long online chat. The law change clearly states they must charge "Australian consumers".

I pointed out that I am not an Australian consumer. I never have been and to the best of my knowledge never will be. This appeared to cause some confusion. The cunning plan seems to be "whack 10% on everything regardless and if we end up with a bill for less than we take, we'll trouser the extra" as far as I can tell!

If they think you are in Oz, take to 10% tax and be grateful,

If you are NZ customer the rate should be 15%

NZ's Digital import tax began in October 2016,

and Amazon have been adding to ebooks already

https://kdp.amazon.com/community/ann.jspa?annID=1126

Behodar

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#1807090 26-Jun-2017 16:49

mattwnz: They wanted to charge me 10% GST for a quicktime licence. They did end up refunding me the 10% in the end.

Interesting; I paid the Australian GST on the QuickTime licence too and they refused to refund it.

mattwnz

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#1807092 26-Jun-2017 16:54

Behodar:

mattwnz: They wanted to charge me 10% GST for a quicktime licence. They did end up refunding me the 10% in the end.

Interesting; I paid the Australian GST on the QuickTime licence too and they refused to refund it.

I got it escalated to management, as I didn't want to have to pay tax I wasn't required to. This is Apple after all, one of the biggest companies in the world, so their billing systems should have been able to detect that.

Some ways the only way to get things sorted these days, is to ask for it to be escalated to management.

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Behodar

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#1807093 26-Jun-2017 16:55

Yeah, you shouldn't have to fight to that extent.

I'm not going to follow it up; I got a $100 gift card for a different issue so I came out on top.

Bung

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#1807138 26-Jun-2017 18:14

I seem to recall a UK site that has the same price for UK residents as Rest of World. UK price includes VAT, Rest of World price is VAT free just dearer.

Geektastic

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#1807267 26-Jun-2017 22:04

Bung: I seem to recall a UK site that has the same price for UK residents as Rest of World. UK price includes VAT, Rest of World price is VAT free just dearer.

It's actually not legal in the UK to charge VAT to people outside the EU if the goods are being supplied overseas (i.e. it's fine to charge it if the person is there in person but not if they order items to be shipped). I always insist it is removed - especially since it is 20%!

Dulouz

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#1807349 27-Jun-2017 08:19

I signed up to Audible.com last week for $14.95 which I assume is USD. Is the Aussie site the same price? BTW - I'm not sure I'll stick with it as I had assumed it was like Spotify/Netflix and you could listen to as much as you wanted. $14.95 for one book a month is pretty pricey.

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#1807372 27-Jun-2017 09:03

Dulouz:

I signed up to Audible.com last week for $14.95 which I assume is USD. Is the Aussie site the same price? BTW - I'm not sure I'll stick with it as I had assumed it was like Spotify/Netflix and you could listen to as much as you wanted. $14.95 for one book a month is pretty pricey.

Re Aus vs US: I recall signing my father up for the Aus site as it worked out cheaper per month, but that'll depend on the exchange rate at the time I guess. Checking the sites now I see both are $14.95 in their respective currency, but that works out to be nearly NZ$5 cheaper if you select the Aus over the US site.

Re the one book/month: on the flip-side, unlike Netflix or Spotify, once you stop paying the monthly charge you don't lose access to the books you've purchased. (My mother built up six credits, which I spent for her then cancelled her sub; she can still listen/download these.)

Also, when you do cancel the sub you'll be sent frequent offers for discounted membership.

And doesn't the membership also get you access to certain Audible podcasts for free?

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Dulouz

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#1807390 27-Jun-2017 09:22

I just figured that audible.com.au works out cheaper as it's $14.95 AUD rather than audible.com which is $14.95 USD.

Amanon

jonathan18

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#1807395 27-Jun-2017 09:33

Dulouz:

I just figured that audible.com.au works out cheaper as it's $14.95 AUD rather than audible.com which is $14.95 USD.

Yes, which is what I explained above your posts! About $5 a month cheaper.

jfanning

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#1807487 27-Jun-2017 11:04

This is how they justified it in the UK store

http://www.audible.co.uk/mt/pricing?ref_=pe_227161_48946171

Q. I’m in a zero rated VAT country, why don’t I pay a lower price?
A. We have decided to use a uniform pricing structure for all customers shopping on Audible.co.uk. We collect and remit the correct rate of VAT based on the customer’s Country of Residence in accordance with the law.

Geektastic

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#1807794 27-Jun-2017 17:05

jfanning:
This is how they justified it in the UK store

http://www.audible.co.uk/mt/pricing?ref_=pe_227161_48946171

Q. I’m in a zero rated VAT country, why don’t I pay a lower price?
A. We have decided to use a uniform pricing structure for all customers shopping on Audible.co.uk. We collect and remit the correct rate of VAT based on the customer’s Country of Residence in accordance with the law.

Since VAT is 20% I'm sure they're making money handed over first.

Although I have a vague recollection that printed books are VAT exempt.

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