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....

[healthandstyle]

It would be unlikely the ATO would allow them to register for simplified GST given their core business operates in Australia.  The whole point of this was for their Australian supplies to be taxed (Both income and GST), so it would appear they are moving everything over to an Australian company just like Google and Facebook have done.

But I could be proven wrong.

[ozzy-gadgets]

GST is revenue neutral. (Always has been).

If you dont pay GST, then you cannot claim it back. Pay GST and as a business you claim it back.

Not convinced that eBay can circumvent collecting GST on their fees, as this is precisely what the Australian "Netflix tax" was designed to prevent. However big overseas companies are EXPERTS at dodging ALL taxes, so I assume their attempts to not pay GST will indeed continue as long as they can breath !

[mdf0_3]

Does this apply to those without an ABN and no store? What if you sell something within Australia or to someone overseas from Aus? 

[healthandstyle]

If you sell something on Ebay and don't have a store or an ABN, you will be just charged GST on the final value fees.  You only need to register for and start charging GST on your sales if your total annual sales turnover goes over $75,000. Sales to customers oversease don't attract GST.

[ozstockman]

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@mdf0_3 wrote:

Does this apply to those without an ABN and no store? What if you sell something within Australia or to someone overseas from Aus? 

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It has nothing to do with what you are selling and who you are selling to. This thread is about ebay fees only. I guess you do not need to have a store. If you have ABN and selling your business products on ebay it is better to provide eBay your ABN, otherwise they may start charging your GST with their fees assuming you area private seller.

As for selling an item to someone with both billing/shipping addresses outside of Australia you cannot charge GST for this type of buyers. And you can only charge GST and claim it back if you are registered or must be registered because of your turnover 

[domino-710]

Why can't this be simples.

eBay charge us fees for selling - it's (eBay) an online service.

The so called Netflix Tax will be on those fees - not the item.

10% of the final value fee.

[thereallygoodbookshop]

I just tried to register but it gives me an error "User's country does not match VAT/GST/OGRN prefix"

I chose the AU which I assume is the code for Australia but my ABN doesn't match their 'prefix'.  It is the same ABN I have had for the last 12 years and I manage to do my BAS returns with that number easily enough 🙂

Has anybody else struck this problem yet?

[creativelilyaustralia]

One thing I am wondering about, since we're here talking about this new tax coming in is a double dipping scenario. Someone buys a personal item' at whatever B&M store where they pay GST already, then later on decide to sell it online on eBay & has to pay another lot of GST...

Correct me if I'm wrong here please. I'll check back later. TIA.

[debonnairefashions]

The Netflix Tax applies digital items like downloaded movies or manuals, not Final Value Fees. This has nothing to do with ebay, but the Australian Tax Department.

[lyndal1838]

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@creative-crafts2 wrote:

One thing I am wondering about, since we're here talking about this new tax coming in is a double dipping scenario. Someone buys a personal item' at whatever B&M store where they pay GST already, then later on decide to sell it online on eBay & has to pay another lot of GST...

Correct me if I'm wrong here please. I'll check back later. TIA.

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Not correct....you are not paying the GST on the item but on the final value fees.

Any items sold on ebay at present are sold GST inclusive anyway.