Digikey complies with Aus GST fiasco. Good news.

[digsys]

Just received -
"We would like to inform you that beginning on July 1, 2018, Digi-Key Electronics will be handling shipments into Australia in a different manner due to amendments to A New Tax System (Goods and Services Tax) Act 1999 made by Treasury Laws Amendment (GST Low Value Goods) Act 2017.

The new law requires that Digi-Key collect Goods and Services Tax (GST) on any order with a customs value of $1,000 Australian dollars or less, except when Digi-Key has your valid Australian Business Number (ABN) on file, and we can validate that you are actively registered for GST on the Australian Government web site. The new rules apply to when an order is shipped, not placed, making scheduled orders and backorders shipping July 1st or later subject to GST as well."

Even better news if you have an ABN !! Are you watching Mouser? :-) Others?

[rs20]

I don't understand. Does this change make things more expensive than before for people without ABNs, or less expensive than before for businesses with ABNs?

[digsys]

I don't understand. Does this change make things more expensive than before for people without ABNs, or less expensive than before for businesses with ABNs? 

Correct. They will add 10% to YOUR invoice IF you don't have an ABN and it is under $1,000 oz. Unsure what happens if you're OVER $1,000 oz
As a non-business, you would claim it back in the same way as before (IF you qualify !! ie NOT an end user etc)

Edit: The biggest worry, for us manufacturers, was that -all overseas component suppliers would simply say "too hard, bugger off" .. a damn nightmare.

[Brumby]

Unsure what happens if you're OVER $1,000 oz

The current system, no doubt.  That is, the shipment will be intercepted at the border and you will have to go through the assessment and payment process for your shipment to be allowed in.  You can expect the GST to be charged as well as other fees for the paperwork handling involved.

Once you go over the $1,000 mark, it is worth going way over - as these extras become a smaller percentage of the add-on costs.  I have someone who imports goods for resale and they will put in a couple of orders that come in under the $1,000 mark - but if circumstances make that impractical, they will shoot for an order of $5,000 to $15,000 which will result in those extra charges being less of an impact on their landed costs.

[rs20]

It is just a computer system accounting function. How hard can it be?

    You've clearly never interacted with government. I envy you.

What about the associated paper trail? The remittance of the collected fees to the Australian government? The difficulty of wedging this functionality into what is already probably a terribly bloated system covered in all sorts of red tape? All to support the tiny fraction of business that comes from Australia while taking on the liability of getting in trouble if they make a mistake?

If you think you can type "=A1*1.1" into a spreadsheet and have thereby solved the problem, you're terribly mistaken. Digikey might just be lucky to have happened to have a system already in place to support this sort of special case trivially.

[Halcyon]

If you think you can type "=A1*1.1" into a spreadsheet and have thereby solved the problem, you're terribly mistaken. Digikey might just be lucky to have happened to have a system already in place to support this sort of special case trivially.

No doubt Amazon do too, they are just choosing not to make the required changes to their sites.

Instead, Amazon have chosen to push their amazon.com.au store and creating yet even more global divide. They've spent so much money already setting it up, so might as well use it, even though it offers an "inferior" product range.

[VK3DRB]

I hope Digikey sends our government a bill for labour for collecting tax. Scott "Motormouth" Morrison should be concentrating on collecting tax from rogue tax evaders like Apple, Microsoft and Google, rather than picking on us small fry.

[EEVblog]

I don't understand. Does this change make things more expensive than before for people without ABNs, or less expensive than before for businesses with ABNs? 

Correct. They will add 10% to YOUR invoice IF you don't have an ABN and it is under $1,000 oz. Unsure what happens if you're OVER $1,000 oz
As a non-business, you would claim it back in the same way as before (IF you qualify !! ie NOT an end user etc)

Non GST registered sole trader businesses and individual can not claim back GST.

[EEVblog]

I don't understand. Does this change make things more expensive than before for people without ABNs, or less expensive than before for businesses with ABNs?

Same end cost for GST registered businesses, just less hassle because they won't charge you GST so you don't have the claim it back.

[peter_mcc]

On another note... Mouser stuffs up Aust GST fiasco.

I've just gone to order $6k of stuff from them - I'm in Australia with an ABN and registered for GST.

Mouser are adding 10% GST to the total but they don't have an ABN and won't be issuing a valid Australian Tax Invoice - so I can't claim the GST back. They may be paying the GST for me on import but that's no help - I can't claim it back without a valid tax invoice.

If it's above $A1000 they aren't meant to charge GST at all - I can't believe that they are so brain dead.

Two relevant pages from  the ATO explaining how it works:
https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/
https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/Information-for-business-purchasers/

I quoted an ABN on a <$A1000 DigiKey order and they didn't charge me GST (like it is meant to happen). I haven't ordered over $A1k from Digikey yet - I tend to split my orders so they are less than $A1k because the customs charge if it goes over are quite high (apart from the GST, which I'd get back)

[digsys]

What a shlt-mess !! Both on how the ATO have written it up, and Mousers (and likely others) have half-assed it.
On the plus side, if you have a good accountant who knows his stuff, he will be able to get the GST credits, even without an "official" tax invoice.
The 10% add on the Invoice will be sufficient proof. It's more work and messier but does work ok. I've had to do it on a few occasions.

[madires]

Actually these processing rules for VAT are nothing new to any distributor. They are doing this for many countries for decades if required by tax law. You're lucky that you had the AU$1000 exemption so long. Our exemption from VAT and import duties ends when goods incl. shipping exceed €22.

[peter_mcc]

What a shlt-mess !! Both on how the ATO have written it up, and Mousers (and likely others) have half-assed it.

The info I've seen makes it pretty simple
- if it's >= $A1000 - don't charge GST to anyone (gets caught on import by Customs)
- otherwise (ie under $A1000)
      - if they have an ABN & claim to be GST registered - don't charge GST
      - otherwise charge GST

On the plus side, if you have a good accountant who knows his stuff, he will be able to get the GST credits, even without an "official" tax invoice.
The 10% add on the Invoice will be sufficient proof. It's more work and messier but does work ok. I've had to do it on a few occasions.

You can always make the claim but if you got audited it may not work out so well. Perhaps ok for a $200 transaction ($20 GST), not sure how it would go for a $5k transaction ($500 GST)

[digsys]

You can always make the claim but if you got audited it may not work out so well. Perhaps ok for a $200 transaction ($20 GST), not sure how it would go for a $5k transaction ($500 GST) 

I've been audited a couple times (100% clean) with a couple $1000 orders incorrectly Invoiced. There's nothing "illegal" happening, your accountant just provides
proof and it's done. Just extra work. Mine used to be a Tax inspector and plays 100% by the rules.
The mess I was referring to is mainly on Mousers side. Just adds extra work and hassle.

[basinstreetdesign]

Digikey might just be lucky to have happened to have a system already in place to support this sort of special case trivially.

They've already been doing it since forever for Canadian orders.  Our GST is 8%.

[Fsck]

Digikey might just be lucky to have happened to have a system already in place to support this sort of special case trivially.

They've already been doing it since forever for Canadian orders.  Our GST is 8%.

5% you silly. The rest is provincial for you.

[thermistor-guy]

Just received -
"We would like to inform you that beginning on July 1, 2018, Digi-Key Electronics will be handling shipments into Australia in a different manner due to amendments to A New Tax System (Goods and Services Tax) Act 1999 made by Treasury Laws Amendment (GST Low Value Goods) Act 2017.

The new law requires that Digi-Key collect Goods and Services Tax (GST) on any order with a customs value of $1,000 Australian dollars or less, except when Digi-Key has your valid Australian Business Number (ABN) on file, and we can validate that you are actively registered for GST on the Australian Government web site. The new rules apply to when an order is shipped, not placed, making scheduled orders and backorders shipping July 1st or later subject to GST as well."
...

The key phrase is "shipments to Australia". I just had a backorder from Digi-Key shipped to my US-based freight forwarder. No GST charged.

Recently Amazon US shipped an order to the same freight forwarder. Again, no GST charged. I have had no problems using the Amazon US web site. My default shipping address is in the US, so that probably helps.

However, my freight forwarder (Shipito) will charge GST when I ship a consolidated package to AU, as expected.

So the GST rigmarole may not complicate your life that much, if you use a freight forwarder.

[digsys]

... However, my freight forwarder (Shipito) will charge GST when I ship a consolidated package to AU, as expected .... 

I used to use shipito a lot in the "bad" old days :-) but most my suppliers "cleaned" up their act and haven't needed to much since.
I did email them to see where they stand, but haven't had a reply. When you say "you have a USA address", you mean the shipito one you get?
Did you have to spoof your "country of origin" IP? I miss the simple old days :-)

[David_AVD]

As a business, Digikey not charging me GST and Mouser charging GST is neither here nor there.  As I key the invoices into our system the GST amount is calculated for them both as I have a GST checkbox in the supplier record.  Yes, I have to pay 10% more up front for some orders, but I claim it back on the next BAS so no big deal.

[orin]

It's even worse here in the US with local sales tax rates.

In the zip code where I live, there are at least three different rates - 7.something (local Costco), 8.6 (mine at home) and 10%.  Guess what happens if a mail order company just uses the zip code - 10%.

Newark/Element14 got it wrong and they refuse to answer their emails about it.  Just to make a point, I made their customer service refund a few tens of cents.

A relatively local out of state store that I've dealt with for years is also ignoring me, in spite of telling their rep on the phone and sending feedback on their web site.  They lost my last order to Amazon who at least get it right.