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....

[phantomchris1984]

a store pays gst on wholesale prices and can claim that money back and when they resell that item in store. the consumer pays the gst on item cause they are the end of the gst line, consumer always pays, so thats why store doesnt get refund of gst they put on items they sell cause the consumer payed it.

but how will this work with ebay fees? whio pays the gst if we can claim it back?

where is the end consumer? is it us who pays gst on fees so we cant claim it back just like gst we pay at store we cant claim back.

its the only way it makes sense, we the seller pays the gst and cant get it back other wise the governmt ends up making no gst, if we all claim it back, no end consumer is paying it so there is no money raised?!?

who is the end consumer? only makes sense if they charged gst on the actual item listing and added the 10% there so the consumer pays the gst like in a real store?!?

[lyndal1838]

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@phantomchris1984 wrote:

a store pays gst on wholesale prices and can claim that money back and when they resell that item in store. the consumer pays the gst on item cause they are the end of the gst line, consumer always pays, so thats why store doesnt get refund of gst they put on items they sell cause the consumer payed it.

but how will this work with ebay fees? whio pays the gst if we can claim it back?

where is the end consumer? is it us who pays gst on fees so we cant claim it back just like gst we pay at store we cant claim back.

The seller pays the GST on the fees to ebay who pays it to the ATO.   If the seller is registered for the GST they can claim it back as they would have built it into the selling price of their goods.....as you say, the end consumer always pays.

its the only way it makes sense, we the seller pays the gst and cant get it back other wise the governmt ends up making no gst, if we all claim it back, no end consumer is paying it so there is no money raised?!?

Are you registered for GST?   I only ask because you don't seem to have a very good grasp of how it works.   There are plenty of businesses who collect GST and pay it to the ATO but have very few claims to get it back..  I pay an average of $1000 a month GST for our business but only claim back about $50.

who is the end consumer? only makes sense if they charged gst on the actual item listing and added the 10% there so the consumer pays the gst like in a real store?!?

All ebay listings are GST inclusive but it only affects those sellers who are registered for GST.  Ebay would have no reason or right to charge GST on the item cost.   All ebay buyers are paying the GST just like consumers in a real store.

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[cr.love]

My understanding is that if my eBay fees are $100 for the month, they will now be $110. All eBay would need to do is reduce their fees by 1% and it would not affect us at all then...😉

[chameleon54]

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@jambarley wrote:
My understanding is that if my eBay fees are $100 for the month, they will now be $110. All eBay would need to do is reduce their fees by 1% and it would not affect us at all then...😉

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If ebay reduced their fees by 1% of your quated $100 it would save you one dollar. I suspect you mean ebay could reduce their fees by 10% and then it would not affect you.

Just out of interest if your income was reduced by 10% would it affect your personal budgeting ?.......... It may even put you in financial difficulty very quickly. If so, why do you think a large company that currently makes very small profits can afford to have its income slashed by 10%  ????       

[goodthingsforsalerobert]

Netflix tax = Applying GST to digital products and services imported by consumers ..............end of story

[character_parties_aus]

NOT

[twyngwyn]

http://sellercentre.ebay.com.au/content/gst-fees-ebaycomau

[thereallygoodbookshop]

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pdme_dolls 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!

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

My account is a business account but I still have this same issue. I don't think I am the only one. 

For businesses registered for GST like mine I claim an input tax credit on my BAS for any gst eBay charges me from 1 July on just like any other taxable supply I suppose.

I don't quite understand why ebay are allowing GST registered businesses an exemption like this as I imagine at GST return time GST will be payable on the fees anyway as the fees aren't GST-free. In other words if you don't pay it on your monthly eBay statement then it will be payable at BAS time anyway.

Has anybody actually spoken to their accountant about it.  Sorry if someone has posted and I have missed it.

[thereallygoodbookshop]

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pdme_dolls 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.

My account is a business account but I still have this same issue. I don't think I am the only one. 

For businesses registered for GST like mine I claim an input tax credit on my BAS for any gst eBay charges me from 1 July on just like any other taxable supply I suppose.

I don't quite understand why ebay are allowing GST registered businesses an exemption like this as I imagine at GST return time GST will be payable on the fees anyway as the fees aren't GST-free. In other words if you don't pay it on your monthly eBay statement then it will be payable at BAS time anyway.

Has anybody actually spoken to their accountant about it.  Sorry if someone has posted and I have missed it.

[go-tazz]

Just got an updated Email,(which clearly states on the updated rate card form that from 1 July the fees will go

up to 10.9% Final value fees (charged on item sale price + postage paid by buyer).

The Email is titled:

Further Information: "Netflix tax" effective 1 July 2017

[imastawka]

Updated rate card

http://sellercentre.ebay.com.au/sites/default/files/complete_fee_table_AU_0717.pdf