Ebay Sales figures to Tax Dept

[vintage_goodys]

I recently contacted ebay in regard to the sales figure forwarded to the tax department.  I wanted to know if they deducted cancelled, and non payment items.  I was advised that they are not and the figure forwarded to tax departments is the total to tax year end of ALL sales made.  I have been paying GST and personal tax on figures that are not correct,  They advised me this has to be done manually be the seller and adjusted before sending in their own tax figures for GST and personal tax, this works our around 10% for my overall year average of returns and cancelled sales.  I want to make all aware of this as it is not stated anywhere that it is not taken off the total when cancelled.  I also asked ebay why they would not change this to help the seller and they said that they are an 'online platform for selling, not accountants'.  Please be aware when you are doing your tax figures

[glenbankloel]

Hullo AF sorry didn't get back on the boards sooner, just wanted to say big Thanks for your help. Have been tied up elsewhere and no time to push on with this headache!! Wishing you lots of sales.  

[trustykeiley23]

what about now that ebay is including the postage cost in the sale price ?? Please, does anyone know if the tax wants earnings over $20,000 I believe they asked fro sellers over $10,000 a while back. Is this a 1 of or the figure is now $10,000 answer appreciated

[harley_babes_hoard]

This thread is over 2 years old.

The information in here is not going to be relevant today

[chameleon54]

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@trustykeiley23 wrote:

what about now that ebay is including the postage cost in the sale price ?? Please, does anyone know if the tax wants earnings over $20,000 I believe they asked fro sellers over $10,000 a while back. Is this a 1 of or the figure is now $10,000 answer appreciated

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The tax office has asked for the financial information for all sellers who have sold more than $10,000 per year in either of the last two financial years ( retrospective ) . The figure used to be $20,000 but has changed a number of times over the years, so is not a fixed figure which never changes. If postage costs are included in sale price, this will go towards your turnover ( sales ) figures. If not included ( ie postage is charged seperatly to sales price ) it is not as clear cut and would depend on how you structure your postage costs. You would definately need to talk to an accountant about this aspect if charging postage seperately to sales price.

[raftercc15]

Hi i buy alot of products from other collectors, gumtree, ebay itself and sell on ebay to make a few bucks, if i am paying cash for 90% of the product i buy how can i claim anything on tax, there are no receipts ;/

[lyndal1838]

There are plenty of other deductions that you can claim, and you have the receipts for the items you buy here.

You should start your own thread...this one is very old and of no real relevance now.  You will probably find other sellers in your situation and it could turn into an interesting discussion.

[lousbloomingarden]

I think this financial year they have to include postage in total sales or not ?

[lyndal1838]

Lou, postage has always been included in the total sales but it is a deduction as well when you pay Australia Post.

[clarry100]

I spoke to my tax agent and he is clear about what tax related info I need to collect.

It is total sales including whatever buyers pay you for postage. No matter if the postage is FREE (ie included) or charged separately to the buyer. This then is your gross income.

As a separate issue when you compile your tax return you can claim the cost of postage as a business tax deduction. And you will have receipts for those costs.

All other relevant operating costs are claimable in a similar way. Your tax agent will be able to advise you exactly what costs are claimable and relevant.

We use the eBay "Paid and Posted" downloadable report (available via Selling Manager) each month as a record of our total ebay sales. We keep this summary info in a spreadsheet along with all the relevant operating costs (for which we keep all receipts). At the end of the tax year he turns all these numbers into a taxable income upon which we have to pay our tax (if any). In consultation with him it seems to be working for us and is not too burdensome to upkeep.

We have not yet crossed the barrier into GST. I believe that this complicates the tax issue.

[lyndal1838]

GST does not complicate the tax issue.

It is an extra tax that has to be paid monthly/quarterly throughout the year instead of a lump sum payment at the end.