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Old Aug 22, 2015, 04:16 AM
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Buying from Hobbyking Australia Warehouse

G'day, Aussie Hobbyking customers take note! ..
I decided to buy an item, using Paypal, from the Hobbyking Australia warehouse, from where the item has supposedly been shipped, according to their order updates.
However on checking my Visa a/c this has been listed as an o/seas transaction and an overseas transaction tax has been added , even though the item was bought in Australia, supposedly from the Australian warehouse. .. ..
Does this mean that the Warehouse here in Australia is non-existent ..?? ..and all goods are actually forwarded from HongKong, which incurrs this added tax.

However to clarify things, I will contact Visa to find out why this o/seas tax has been added to a domestic transaction, and will advise.
Daffy ..
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Old Aug 23, 2015, 12:03 AM
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Daffy, the warehouses exists (you can actually do a local pickup, or at least use to be able too) but as far as I am aware when you order it all goes through Hong Kong and the order is printed at the relevant selected warehouse for despatch. The warehouses are not setup as local based stores so it is still a foreign transaction. Where the warehouses are an advantage is ordering large items and dangerous goods that would normally not be able to be shipped. Was it a foreign currency transaction? Will be interesting in Aus come 2017 now the Government has decided it will impose GST on our OS online purchases.

Cheers Mark
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Old Aug 23, 2015, 08:58 PM
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Thanks KCV6 for your explanation and the reasons for this added o/seas tax to the purchase on my Visa a/c.
Sounds logical. ..
Although why advertise any item on the Australian warehouse in AU$, when the US$ amount used worldwide for the same item, is then used when payment for it is processed?
I also cannot understand another thing too, because in addition to the above, this International Warehouse US$ amount, when converted back to AU$, is invariably higher than that original advertised AU$ Price on the AU warehouse website.
Then, because it is classified as an o/seas purchase, you get hit with that additional tax as well, by your Credit Card ... after also suffering the far lower exchange rate used by PayPal! ... You can't win! .. ..
Therefore, IMO, it really does not pay to buy smaller items from HobbyKing in AU, unless you need them in a hurry.
That's because the item I ordered, the actual subject of this post, arrived in less than a week, and was over a weekend period, which is an advantage compared to an o/seas order ... anything ordered from the o/seas warehouse can often take literally weeks to arrive!
Just my thoughts. ..

As far as the proposed adding of GST to all o/seas purchases, in a couple of years time, I have it on fairly good authority, that it will cost more to collect this tax than it will return in revenue. It apparently trusts the o/seas seller to forward the tax if it is collected by them.
However, if this is not what is envisaged, because of ... obvious to normal people ... the impracticality of this, a massive new bureau will most likely be added here to Customs and Revenue, to monitor each and every shipment, to add the tax before it is forwarded to the purchaser ... and which has to add to the time taken for the goods to be received as well!
I'm hoping a rethink or review on adding or removing this tax will be undertaken, when it is decided it is too difficult to implement.
But who knows how Governments think?

However, after all that, in most cases purchases made o/seas from outlets like Hobbyking, still end up being far less expensive, with new tax added ... or even better, NOT!
And that includes some purchases from the USA, except for the massive shipping costs for many items from there, and the inability to buy Restricted Items like LiPos from there as well.

This hobby is becoming more and more expensive to enjoy! ..

Daffy. .. ..
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Last edited by Little Black Duck; Aug 23, 2015 at 09:25 PM. Reason: Corrections
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Old Aug 24, 2015, 02:27 AM
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Originally Posted by Little Black Duck View Post
Thanks KCV6 for your explanation and the reasons for this added o/seas tax to the purchase on my Visa a/c.
Sounds logical. ..
Although why advertise any item on the Australian warehouse in AU$, when the US$ amount used worldwide for the same item, is then used when payment for it is processed?
I also cannot understand another thing too, because in addition to the above, this International Warehouse US$ amount, when converted back to AU$, is invariably higher than that original advertised AU$ Price on the AU warehouse website.
Then, because it is classified as an o/seas purchase, you get hit with that additional tax as well, by your Credit Card ... after also suffering the far lower exchange rate used by PayPal! ... You can't win! .. ..
Therefore, IMO, it really does not pay to buy smaller items from HobbyKing in AU, unless you need them in a hurry.
That's because the item I ordered, the actual subject of this post, arrived in less than a week, and was over a weekend period, which is an advantage compared to an o/seas order ... anything ordered from the o/seas warehouse can often take literally weeks to arrive!
Just my thoughts. ..

As far as the proposed adding of GST to all o/seas purchases, in a couple of years time, I have it on fairly good authority, that it will cost more to collect this tax than it will return in revenue. It apparently trusts the o/seas seller to forward the tax if it is collected by them.
However, if this is not what is envisaged, because of ... obvious to normal people ... the impracticality of this, a massive new bureau will most likely be added here to Customs and Revenue, to monitor each and every shipment, to add the tax before it is forwarded to the purchaser ... and which has to add to the time taken for the goods to be received as well!
I'm hoping a rethink or review on adding or removing this tax will be undertaken, when it is decided it is too difficult to implement.
But who knows how Governments think?

However, after all that, in most cases purchases made o/seas from outlets like Hobbyking, still end up being far less expensive, with new tax added ... or even better, NOT!
And that includes some purchases from the USA, except for the massive shipping costs for many items from there, and the inability to buy Restricted Items like LiPos from there as well.

This hobby is becoming more and more expensive to enjoy! ..

Daffy. .. ..
Not 100% sure what you mean but I will try to answer for you. The AUD or EURO or GBP or JPY, or whatever currency you wish to choose, value is a function of a plug in that gives a guide to how much you should expect to pay, if it varies at the time of check out then PayPal have probably changed their rate of exchange more recently than the exchange rate function on the site. Thousands of stores around the world use this function, the other options aren't that great. However if you need to be super accurate when making your purchase change your currency back to USD on the site and go to PayPal's website and do the conversion there, but you will need to place your order shortly after. Keep in mind that the price isn't changing in USD, that is static, unless of course there is a flash sale on the item.

As for overseas tax, you should only be getting charged GST if your order is over $1,000 (that will come from Customs or the carrier not your credit card), at the moment, but that will change in 2017 to any order. So it is most likely that you are being charged an overseas transaction fee from your credit card, which if you are using PayPal is very odd. My suggestion is you link a bank account to your PayPal account and then you definitely can't be hit with an overseas transaction fee and you don't have to pay interest either.

And regarding the practicality of collecting the GST from overseas transactions, the UK and EU have been doing it for years, it is a reasonably simple process over there, but you can guarantee Australia will try and do it their own way.
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Last edited by Nick_HK; Aug 24, 2015 at 07:01 AM.
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Old Aug 24, 2015, 10:56 PM
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Thanks Nick_HK

Very lucid explanation, much appreciated, and covers what I thought would be the case particularly in reference to currency fluctuations that can change constantly.

However I will contact my Credit Card Provider ... Visa in this case, where my card is listed with PayPal as the form of payment for purchases. They have used the US$ Amount that was used by Hobbyking, and when this was transferred as a debit to my Visa Card a/c, it was presumably taken by them as an o/seas transaction,and the o/seas transaction tax added.
Will advise outcome, for anyone interested.

I also reckon that any price quoted should be only taken as a rough guide, and that if buying from HobbyKing you should be prepared to add a little more to the final amount than originally hoped ... especially if using PayPal, which should be used for all purchases, as it is definitely the safest option, despite costing a little more on the cross rates.

Daffy
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