GST on dropshipping on ebay.com

Hi, does anyone knows if i need to pay GST on income that is made on ebay.com as a dropshipper ? I've never sold anything in australia and never charged GST.

 

my turnover was over $75K

 

can anyone recommend a good e-commerce accountant to deal with this situation ?

thanks.

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GST on dropshipping on ebay.com

On a Business Activity Statement (BAS) there is a field to put in an amount of income which is not subject to GST.  If you did not charge GST for those sales then you total the sales from those amounts and put it into that field.

 

I used to do work for someone in the United Arab Emirates so always put his payments into that field.

 

You would of course have to declare it as income for your personal income tax return, as it's a source of income in the end.

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GST on dropshipping on ebay.com


@lyndal1838 wrote:

You are earning an income in Australia by providing a service.


And he will be paying a tax on his income. It has nothing to do with GST which does not apply to him.

 

How is it different from selling overseas? The fact that he is selling a service to overseas customers does not make any difference with seliing a product to the same type of customers.

Decoroo - Custom made wooden products

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GST on dropshipping on ebay.com

Off the top of my head, as an Australian resident, you would not be liable for GST on items that have never been in Australia. Assuming you are not dropshipping from Australia. Unlikely, given very little is manufactured (except submarines) here anymore.

 

You would, however, be liable for income tax.

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GST on dropshipping on ebay.com

for some strange reason my tax agent told me today i will have to pay GST and that freaked me out, i'm almost sure that i don't have to pay GST on goods that are not sold in australia, do you know any accountant that can handle this?

 

I'm an australian citizen, I dropship from amazon U.S to ebay U.S

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GST on dropshipping on ebay.com

i think you may find the "S" part of GST could apply. Goods and SERVICES Tax. Being an Australian resident you are providing a service.

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GST on dropshipping on ebay.com

I agree with bsal....you are providing a service.

Any good accountant should be able to advise you.

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GST on dropshipping on ebay.com

ok, so i provide a service, but isn't gst is for goods and services within australia? when all the services and goods were purchased in the U.S do i still have to pay GST on them?

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GST on dropshipping on ebay.com

You are earning an income in Australia by providing a service.

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GST on dropshipping on ebay.com

Get a second opinion from another accountant, or, for free call the ATO.

Most likely GST is not required but Income tax would be.

There is some info here: https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-not-to)/taxable-sales/#SalesConnect...

 

 

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GST on dropshipping on ebay.com

There is a clause that states the services are GST free if the recipient is outside Australia but there are strict rules.

I would ring the ATO to see if you do qualify for providing a GST free service.

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GST on dropshipping on ebay.com

Having quickly read the ATO site on GST free services the OP would be lioable for GST.

1.

Sales in the course of operating your business

For a sale to be taxable, you must provide the goods or services as part of conducting your business.

 

2.

Sales connected with Australia

GST applies to sales that are connected with Australia, whether they are goods, property or other things

 

3.Things other than goods or property

the seller makes the sale through a business they carry on in Australia

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