Does Ebay charge GST on postage? If postage is $15.00 what would the charge be?

[14klippi]

I know that Ebay has to pay GST and it has been passed on the seller but is it also charged on postage.  My postage was $15.00 and was charged $1.63.  Also $8.00 postage was charged 87c.  Bit confused here and any help explaining will be much appreciated.

[*tippy*toes*]

You are only charged GST on the fee for the postage, not the actual postage. If postage is $10, you are charged 99c in fees. You are then charged GST on that 99c, so 9.9c, which would be rounded up to 10c. 

[ubique17]

No - Ebay is charging GST on the full postage amount.. Just choked on my first overseas purchase with GST added at checkout, the 10% is added to item + postage.. 

[davewil1964]

eBay charge GST on the total amount of their fees. 

Domestically, which is what this thread from last year is about.

The new GST charges on overseas purchases are an entirely different matter, about which there are many CURRENT threads. Admittedly, most of them contain the same sort of disinformation as your contribution.

[tangledstitches]

What the OP's post is actually about is that they've mistaken ebay's fees on postage for gst.  $1.63 on $15 is 10.9%, the standard fvf for non-stores.

[way-new]

I was charged 10% for item and postage from germany. Surely the GST is only supposed to be paid on items purchased and not postage. This will cut down my overeseas purchases greatly.

[davewil1964]

S is for Services. What postage is.

That's why it's called a GOODS and SERVICES tax.

[dazzledayz]

All well and good Dave but although AP will have to deliver that parcel at a loss, I doubt as they'll see any of the 10% on postage.

The feds will just stick it in consolidated revenue and we'll keep paying high postage rates to cover any shortfalls.

On the plus side, if this move does cut down the number of imported parcels it may help forestall future AP price increases.

[ozghost1952]

One oddity of the system is that G.S.T. (Goods and Services Tax) applies to domestic postage, but not to international postage. As a result, different stamps must be used for the two purposes.

eBay should not be charging GST on overseas postage!

[clarry100]

Ebay DO NOT charge GST on postage whether domestic or international.

You pay GST at the Post Office when you buy internal domestic postage but not if the package is detined for an O/S address.

There are GST excluded postage rates for items going outside of Australia.

Ebay are required by law ("Netflix" tax of last year) to charge GST on their fees only.

There is a FVF they charge on a sold item, which includes the postage component, no matter FREE postage or separate postage.

The GST they charge is the tax on the FVF fee, not the actual postage cost itself.

The new GST on imports valued at under $A1,000 introduced on 1st July 2018 is a GST on the value of the item which includes its postage/shipping cost.

This has always been the case on items valued at over $A1,000 so is consistent with that.