Netflix tax

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....

 

 

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Re: Netflix tax


@jfmgray wrote:

 "All fees (including FVF) will be charged GST. The Shipping & Postage charges will not be charged GST. Please note difference between postage charges & eBay fees. Shipping is not an eBay fee so is not charged GST."

 

So who knows!!


There is nothing ambiguous about that statement....postage charges are NOT ebay fees and will not attract GST.

 

This is not the first time I have seen this statement during the various discussions of the GST....and it is exactly how the system should work.

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Re: Netflix tax

Please read the first part of my post.  The last statement is indeed clear - it is just the opposite of what other eBay CSOs have been telling me.  In the one series of "back n forth" messages, I have been told totally different things.

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Re: Netflix tax

Surely you don't think an American CS person knows how an Australian Tax will work?

 

I would believe the statement that is actually consistent with how Australians KNOW the GST should work.

If a company as big as ebay were to get this simple GST application wrong it would be an administrative nightmare, not to mention the publicity.

 

Think what you will about ebay....they are not stupid.

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Re: Netflix tax

Something related, but of which I can find no mention here. Will Paypal fees also be subject to GST wef 1st July? Apologies if this is the wrong place to ask 🙂
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Re: Netflix tax

Perhaps I should have asked if Paypal fees already have a GST component included.

(You don't get long to make edits on this board!)
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Re: Netflix tax

Has anyone actually suceeded in registering their ABN at the link site EBay provided?

When I input our ABN I get the response:

 

The following must be corrected before continuing:
User's country does not match VAT/GST/OGRN prefix.
 
Yes, I chose "AU" and then input our ABN number - no luck!
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Re: Netflix tax


@porcelain_dolls_by_me wrote:

Has anyone actually suceeded in registering their ABN at the link site EBay provided?

When I input our ABN I get the response:

 

The following must be corrected before continuing:
User's country does not match VAT/GST/OGRN prefix.
 
Yes, I chose "AU" and then input our ABN number - no luck!

I believe you have to make your ebay account into a Business account before you can put your ABN in.

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Re: Netflix tax

I am not a seller so have never seen a paypal invoice to know if it has GST added.....but it does have an Australian Banking Licence (as a money transfer service).  As bank fees here are not subject to GST I would assume that they are also not applicable to paypal.

 

If I am wrong, I am sure sellers will soon be told that they are up for more fees on their paypal fees.

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Re: Netflix tax

PayPal sent out an email a couple of days ago outlining upcoming changes to the user agreement, none of which were GST-related (from what I can gather, the updates are related to payment funding sources, I'm not 100% sure but it looks like you might be able to nominate a source other than a PayPal balance in order to pay for something online. They are also updating what qualifies as SNAD on pick up items, and used items that were inspected / picked up by buyers can not be claimed SNAD). 

 

Interestingly, the other "E" site has made no announcements about GST on their fees. I wonder if they will, or whether the fact that they don't have a dedicated Aus site makes a difference? Smiley Frustrated

 

The questions i have now is what with happen in cases where ebay invoices for fees on items that aren't actually paid for (which happens all the time), and those items then go to UPI or the order cancelled, as well as if items are returned later.

 

They also sometimes run promos where they charge fees, but reimburse them a month or two later, so I really hope they provide a more detailed info page or something soon. I don't like not knowing exactly how things are gunna work. Smiley Surprised Smiley LOL

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Re: Netflix tax

Good points Digi.

 

If things work as they should, when/if you get any sort of a refund you should also get the GST refunded no matter when the transaction occurred.

I would definitely not like to be the staff member who has to process all those refunds for UPIs and promotions.Smiley Frustrated

 

I only have limited experience of the paperwork involved in refunds including GST but it is a hassle.  It is easier to send it to the accountant that month.Smiley Very Happy

I always overestimate our wages for Workers Compensation so we get a refund each year.  Last year they did not actually refund but deducted the refund amount off the next payment.   I hope they do the same this year so I don't have to do the GST adjustment.

 

 

 

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