Do I a sell now add gst to all my items

As a seller of goods on ebay do i now add gst to my items to pass on to the buyer, if so then i feel customers will go elsewhere

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Do I a sell now add gst to all my items

lyndal1838
Honored Contributor

Selling prices on ebay are already GST inclusive.

Are you registered for GST?   You cannot collect it if you are not passing it on the the ATO.

 

Why would your customers go elsewhere....everyone is subject to the GST so they are unlikely to be better off.

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Do I a sell now add gst to all my items

ircinic-7
Community Member

@pmil1480 wrote:

As a seller of goods on ebay do i now add gst to my items to pass on to the buyer, if so then i feel customers will go elsewhere


No.

 

The GST only applies to the fees eBay charge for their services.

 

FVF, etc etc

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Do I a sell now add gst to all my items

go-tazz
Community Member

GST explained for Australian eBay sellers:

 

http://sellercentre.ebay.com.au/content/gst-fees-ebaycomau

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Do I a sell now add gst to all my items

For private, non-business sellers, instead of the 9.9% Final Value Fee that it's been for a while, it's now 10.9%. It's not a whole lot of difference in terms of what you'll be charged. Maybe just add an extra .50c or $1 to your item price, depending on what prices you're selling things for.

 

Everyone without an ABN is in the same boat, so most sellers will probably be doing the same thing.

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Do I a sell now add gst to all my items

It works out that you need to add about 1% to the item sale price to cover this extra 10% GST on ebay fees.

 

Here's how...

Take a $10 sale item for example.

The FVF would be approx = $1.00 (depending on your account level) under current fees.

After July 1st the FVF will be about $1.10 (up by 10% for the added GST)

So to cover the loss you need to add about 10-cents to your item price.

That's approx 1% of the item price.

 

So if you work on about a 1% price increase you can't go far wrong. Not enough that buyers would even notice I reckon.

 

If you have an ABN a-n-d you are already registerd with the ATO for GST, then make sure your ABN is on file with ebay.

If so, then they won't even charge you the new GST at all.

 

Keep in mind that this new GST is on fees ONLY and NOT on your item sale price. That is your business and between you and the ATO.

 

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Do I a sell now add gst to all my items

Don't forget that it's on the postage cost charged to the buyer as well,(not the labels).

 

So if you sell an item for $10 with $10 postage the fee will still be 10% of that total amount,(but the total it

 

is charged on is then $20).

 

To cover the GST on the postage cost you woud need to increase the item price by 2% or charge more for

 

postage.

 

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Do I a sell now add gst to all my items

GST should be shown on the invoice. eBay not collecting GST  on Australian orders feels really wrong.

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Do I a sell now add gst to all my items


@uxstitch01 wrote:

GST should be shown on the invoice. eBay not collecting GST  on Australian orders feels really wrong.


 

it's not eBay's responsibility to collect GST (where due) on Australian domestic orders.

 

Prices on items sold in Australia to Australians are GST inclusive when the seller is registered for GST.

 

Businesses registered for GST who sell on eBay are already reporting GST collected through their Business Activity Statements to the ATO.

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