Netflix tax

[stickerswa]

Just got an email from ebay...

From 1 July 2017, Goods and Services Tax (GST) will apply to fees on eBay.com.au, due to new legislation in Australia (the "Netflix Tax").

Businesses registered for GST will not be affected by this change if you register your Australian Business Number (ABN) with eBay here.

Anyone else feel a fee increase coming to cover this....

[jfmgray]

I'm confused (nothing new there).  I thought th "Netflix" tax only applied to digital services  like netflix & spotify - didn't tyhink it applied to eBay fees.  As always the link on the email to get more info doesn't work for me and there is nothing on the announcement board.  If it also applies eBay postal labels, then the additional 10% will arguably make these less attractive to Australia Post where the GST is included in the costs.

[tazzieterror]

I think you'll find eBay *is* providing a digital service.

[Anonymous]

Clicked the link to an account I am not logged in to and was presented with a registration form.

Same generic page for all 3 links.

http://cgi1.ebay.com.au/ws/eBayISAPI.dll?RegisterVatIdV4

http://cgi1.ebay.com.au/ws/eBayISAPI.dll?RegisterVatIdV4

http://cgi1.ebay.com.au/ws/eBayISAPI.dll?RegisterVatIdV4

So how exactly would ebay know exactly which account has which ABN.

[harmlesssolutions]

"As always the link on the email to get more info doesn't work for me and there is nothing on the announcement board."

That's likewise for me. Where do we find info on this "Netlix tax"?

[aus-yoyoyo]

My understanding about all this is that if you are purchasing digital stuff (or services) on eBay from an international seller, you *may* be charged 10% GST on the purchase *if* you are an Australian consumer.  An "Australian consumer" is one that is *not* registered for GST.  Apparently, if you are registered for GST this new "netflix" tax does not apply.

This page from the ATO may help:

https://www.ato.gov.au/Business/International-tax-for-business/In-detail/Doing-business-in-Australia...

... as for the bit in the email about GST on eBay fees - that doesn't seem to have anything to do with this Netflix tax and is just completely confusing.

I'm guessing they have sent this email out to all australian eBay sellers because they have an ABN and are potentially registered for GST.  The link in the email that allows you to "registered for an exemption" seems to be related to exempting us (as buyers) from GST charged on things we buy overseas *IF* we are registered for GST.

I may have this completely wrong, but that's what I thinking it is about!

[ozstockman]

---

@stickerswa wrote:

Just got an email from ebay...

From 1 July 2017, Goods and Services Tax (GST) will apply to fees on eBay.com.au, due to new legislation in Australia (the "Netflix Tax").

Businesses registered for GST will not be affected by this change if you register your Australian Business Number (ABN) with eBay here.

---

It is so badly worded both in their email and that page that I cannot even get what they are talking about. I am registered for GST so their fees must include GST. What kind of exempt status  they are referring to? 

[porcelain_dolls_by_me]

I would suggest that EBay will simply add 10% GST impost on top of their existing selling fees, meaning selling fees will effectively be increased by 10%.  The GST they collect will then be remitted to the ATO.

They are asking for the ABN numbers of those registered for GST in order they can advise this information to the ATO.  Business' registered for GST will be able to claim an input credit for the GST they pay to EBay and the ABN number will be used as a check for the claim.

All other sellers will just have to suck the extra cost!

Personally, I do not understand the basis for Ebay suddenly imposing this GST impost.  EBay has argued (sucessfully) for years that as they are billing from outside of Australia, their fees are not subject to Australian GST.  The same applies to PayPal.  Numerous court challenges have upheld the positon of EBay.

[porcelain_dolls_by_me]

ozstockman..................

This is just another example of the contempt with which Ebay treat the Aussie sellers.

Their message about the GST makes no sense, and the link they provide for "more information" gives no additional info. 

Roll on Amazon!!!!!

[ozstockman]

You are right, some links do not work in their email. It surprises me all the time that they do not even check their emails for wrong details and broken links. It tells a lot about the whole company when they send millions of emails with broken links in it without even testing it first or simply proof read. it..

[ozstockman]

pdme_dolls, I guess it should be completelly opposite to what they are actually saying. An exempt should be applied to those who are not registered for GST and they do not need to do anything, all others should provide an ABN and a business name. It makes sense that way only