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....

[creativelilyaustralia]

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@davewil1964 wrote:

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@creative-crafts2 wrote:

Ppl pay tax on their wages, make voluntary (or involuntary) payments into their superannuation & when they retire they're slugged with tax again on their superannuation, which they've already paid tax on with their original wages during their working years. Now the general population pay GST when they purchase an item at a B&M store already BUT should they choose to sell it on eBay, they get slugged again for another GST on the sale of an item that they've already paid GST on.

Not complicated, just straight out double dipping courtesy of ATO. Who would like to be paying a second round of the Emergency Services Levy on eBay as well - anyone?? 

Night folks.

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You really need to get an understanding of tax law.

In your highlighted instance, the seller is NOT paying any GST on the item sold, but IS paying GST for the fees that eBay has charged for providing you with the service you availed yourself of, in order to sell the item.

It is not complicated, and these sorts of red herrings can only be construed as trying to muddy the water.

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paying GST for the fees that eBay has charged for providing you with the service you availed yourself of, in order to sell the item.

Hence taxed for the service of selling the item on eBay despite a person may have already paid GST with their original purchase from a B&M business.. Have a nice day everybody. 🙂

[going*gone]

I have seen Ebay get worse and worse over 15 years and it's only getting worse flooded with advertising for big business!

Afterpay is a new company in Australia and so many consumers using Afterpay ATM effectively causing Ebay's sales to drop. Buyers can walk into almost any shop and buy what ever they want and walk out with the item in hand without having the money up front.

Buyers are flooding the use of this payment platform and not spending money on eBay ATM.

Ebay how about you do something the help boost the sales for us sellers by offering Afterpay pay. Why should we sellers be forced to use PayPal and pay fees to PayPal when a new company "Afterpay" can be much more effective and actually drive in more buyers creating more sales for every seller. If we save money not having to pay PayPal fees maybe the small sellers can continue to exist.

Trade-me in New Zealand will be using Afterpay as a buyers first payment method.

[8913debbie]

Yes that is correct

[chameleon54]

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@tazzieterror wrote:
How on earth did you arrive at a figure of 30%? I think it may be your arithmetic skills causing you to lose money on eBay, rather than the fees! 😄

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The ID you are responding too ( going*gone ) stated that with paypal fees included, their selling costs could be 30%. Agreed the way they reached this figure was slightly flawed, but for many sellers they are not far off the mark. Take the following real example from one of my best selling and cheapest items.

I get the item for free. I charge $9.95, but it is heavy and needs to be mailed in a 3 kg. satchel. With P&P I charge $14.50 postage on this item. Ebay commision fees ( not including any listing fees etc. ) at 9.9 % of total incl. postage are $2.42. ( 24% ) . If the ATO adds 10% GST to the ebay commissions component of the transaction, it will add another 24 cents, bringing the total in ebay fees to $2.66 ( over 26% ) Now add in paypal fees of 4 or 5 % of the total transaction cost ( I dont know the exact cost of paypals service ) and this adds around another $1.00 to the fee grab. Total fees paid for the sale of the $9.95 item will be around $3.66 or over 35% of the item cost.

Another real example. I have just done the tax for my two stores for the 2015-2016 financial year. My largest ebay store had ebay fees ( not including paypal ) of 22.3%. This store is a featured store and has more listings than its allocated freebies, so pays some listing fees. Add 10% GST to the current 22.3% fees gives total ebay fees of 24.53 %. Add in the paypal fees and we are very close to 30% total fees as stated by going*gone. This is on ebay sales of tens of thousands of dollars, so not scewed by nominal sales.

In essence going*gone was correct in stating that an item purchased for $80 and sold on ebay for $100 could end up costing more in stock purchase price and ebay / paypal  selling costs than is actually recieved for the item.

Many people would be suprised if they did their figures correctly on how much they are truly paying ebay and paypal for their services. Not really understanding the fees is one reason many sellers with slim profit margins struggle to make ebay pay.

[ourphonecase]

I don't get what makes afterpay better? It sounds like a credit card?

[ozstockman]

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@ourphonecase wrote:
So if I am already paying gst for my sales of my products what difference does it make?

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You are talking about GST component in your product cost, this tax and thread is about charging GST on ebay fees only.

[going*gone]

No it's not a credit card. Easier if you google them.
As I said above Trade me New Zealand will be using them as first payment option.

If we have to pay GST on fees it would be nice if Ebay could help sellers by removing the forced PayPal as a first payment option and giving us other options. We can then save on PayPal fees.

[rocket2retro]

You will not be charged on GST on the item, but rather the fees you paid to use the digital service (namely eBay) in order to sell the item. The eBay fees all relate to the usage of their service.

[go-tazz]

The official Government version:

This is the one covering eBay:

It will be imposed on intangible supplies such as supplies of digital content, games and software—

but will also extend to consultancy and professional services performed offshore for customers in

Australia.

[brerrabbit585]

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@creative-crafts2 wrote:

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@davewil1964 wrote:

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@creative-crafts2 wrote:

Ppl pay tax on their wages, make voluntary (or involuntary) payments into their superannuation & when they retire they're slugged with tax again on their superannuation, which they've already paid tax on with their original wages during their working years. Now the general population pay GST when they purchase an item at a B&M store already BUT should they choose to sell it on eBay, they get slugged again for another GST on the sale of an item that they've already paid GST on.

Not complicated, just straight out double dipping courtesy of ATO. Who would like to be paying a second round of the Emergency Services Levy on eBay as well - anyone?? 

Night folks.

---

You really need to get an understanding of tax law.

In your highlighted instance, the seller is NOT paying any GST on the item sold, but IS paying GST for the fees that eBay has charged for providing you with the service you availed yourself of, in order to sell the item.

It is not complicated, and these sorts of red herrings can only be construed as trying to muddy the water.

---

paying GST for the fees that eBay has charged for providing you with the service you availed yourself of, in order to sell the item.

Hence taxed for the service of selling the item on eBay despite a person may have already paid GST with their original purchase from a B&M business.. Have a nice day everybody. 🙂

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If you advertise the item in a newspaper's classified ads you'll pay GST as part of the cost of the ad, so it's no different to pay GST on what you pay ebay for the use of their site.

You really need to read up on superannuation tax laws as well.  The reason people put so much money into their superannuation accounts is because they're taxed at a much lower rate (for most people anyway).