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

[sexy*harley*chick]

Ummm i would of thought that any fees, well sorry no not would of thought, I KNOW that any fees your charged be it listing, final value, fees from paypal, fees from cancelled sales etc, would count towards your expenses.

Didnt you ever write them down as your expenses?

I go through my ebay statments and its got it all there for you, you just put the totals in the appropriate columns.

Plus when things are cancelled you get a refund from ebay dont you?

Im dreading this month when ive got to do it all again lol, after this tax year im going to keep better records and do it monthly so i dont have to pull out everything for the past year.

[vintage_goodys]

Hi, you are right ebay refunds the fees, but the actual sales figures are not adjusted, eg you sold an item for $149.00, buyer asks to have it cancelled you cancel, get final value credit fee refunded, BUT the $149.00 still goes into othe final figure to go to the tax dept as a sale, so your monthy figures are total of ALL ITEMS SOLD, not items sold less cancelled sales and non payment sales, seller needs to keep a track of all refunds, cancellations etc and manually deduct from the figure when you put in GST and end of year sales, it will be less than the figure ebay sends to the tax dept. cheers Judy

[phorum_junkie*]

That is not how it works, ebay just report that certain sellers have a turnover of over whatever the reporting limit for that year is.

It is then up to the seller to provide their accounts which may show a very different story, there may be very little profit therefore little or no tax to pay or they may in fact have to pay on a larger figure if they have been profitting on delivery charges.

[sexy*harley*chick]

I cant remember now, I think all my stuff is downstairs in my tax folder but im sure i saw on the ebay statment that it showed the amount you sold, given back to you as a credit, so yes you would have $149 as sales, but then under the credit section on your ebay statment im sure it sais $149 credit?

Im positive of it.

Cause i know i wrote down all income, all credits from ebay, then all fees from ebay, and all fees from paypal and im sure paypal has credits on it also.

Its been almost 12 months lol, but im sure it works that way???

[ausfast]

The way I do it to ensure that only sucessful sales are counted towards my income is the following EACH quarter (Important as they only let you check the last 3 months:

- Go to File Management > Create Download Request.

- Select Paid and Posted from the dropdown box.

- Specify dates for the 3 months period and click Save.

They will email you a spreadsheet of each and every sale you have had in that quarter.

Do an Excel formula Total on column U which contains the "Total Sales" price paid for transaction. This includes sales price + postage at the end of the transaction. This also means that if your transaction was refunded, then this column will actually show $0.00 for the total sales price. 🙂

Because you chose "Paid and Posted" for the report, only actual posted orders will be counted and cancelled orders will not.

PS: The column U contains "AU " in front of the prices so to be able to total this it needs to be removed. To remove this from the front simply click "Replace" and tell it to replace "AU " with nothing in the next box. Then "Replace All" clears it from all rows so you just have the dollar figure that can be calculated.

Hope this helps. 🙂

[vintage_goodys]

Hi, I do know the figure that was sent to the Tax Dept., it does not include postage,all sales only, not postage included, I contacted ebay for the figure forwarded for last financial year, all sales are sent, thankyou ausfast for your reply VERY HELPFUL and will use that method to calculate my figure to use

[vintage_goodys]

Hi there, thankyou for your reply.  I have contacted ebay for the figure sent to Australian Tax Office for last financial year, they send the total of all sales, not including any refunds or cancelled sales (mine being approx 10%) postage is irrelevant to them, they do not include in the figure for Tax dept.  Happy ebaying:-)

[pile2009]

- Go to File Management > Create Download Request.

- Select Paid and Posted from the dropdown box.

- Specify dates for the 3 months period and click Save.

Sorry for what may be a stupid question but where exactly do I find this?

TIA

[wishuponastarcelebrationsandgifts]

You will need to maintain your own records for all revenue and expenses. EBay reports on their own are insufficient.

If you are registered for GST I would suggest using accounting software as you also need to claim the GST on stock purchased etc. You will also need to maintain inventory records.

In the event of an audit the ATO may check source documents/records such as bank statements, PayPal records, and receipts, stock take records and so forth.

I would recommend you speak to an accountant to ensure that you are compying with the record keeping requirements under the Tax Act.