SOMEONE EXPLAIN WHY THE SELLERS ARE PAYING THE NEW GST TAX?

[phantomchris1984]

when i buy something at a store it includes gst.

when i sell on ebay as a seller i pay the gst on fees???

whats going on???

why isnt the buyer paying it???

for example when i list an item for $10, ebay should add the 10% like so ($10+$1GST = Total cost: $11+ FREE POSTAGE)

i make the ten dollars minus normal fees, the gst goes to ebay then they pay that $1 to the government!!!

but thats not what is happening, the seller is paying the gst and the buyer pays nothing, i as the seller is the looser, the opposite of how it works in a real store. its as if ebay is treating the sellers as customers of this service of this site???? instead of treating the sold items as the service?

the seller never pays the gst, only the buyer as it should be.

why was this so hard to do??? why do it the wrong way in ebays benifit and not letting customers pay it.

So backwards??????

and whats weirder is if your a business your exempt from the gst???why?? then who pays?? ebay?? whats the point, so weird.

[digital*ghost]

In this scenario, the buyer is the consumer of your goods, while the seller is the consumer of eBay's services.

It is always the end consumer who pays GST, and since you don't technically onsell eBay's services, you are the end consumer.

[digital*ghost]

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@phantomchris1984 wrote:

and whats weirder is if your a business your exempt from the gst???why?? then who pays?? ebay?? whats the point, so weird.

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Sorry, I neglected to address this part.

In cases where the seller is registered for GST, the government will not gain any additional revenue from GST paid to eBay because whatever the seller pays to eBay will be credited against what they owe on their sales revenue. For example, let's say a seller sells an item for $100. They then pay eBay fees of $9.90 and GST on those fees of 99c. If they are registered to collect GST, they will actually be liable to hand over $9.09 (1/11th of the $100 sale price) in GST to the government, but the 99c they have already paid will be credited against that, leaving their liability at $8.10. 

Either way, the government ends up with $9.09 from that sale, so to allow GST-registered sellers to be exempt from paying it to eBay, simplifies the process. 

[lyndal1838]

Too many big words Digi.

[chameleon54]

If you go to the dentist, they will charge you GST on the bill for the service. If you use the services of ebay in Australia, they will charge you GST for their services. The service ebay provides is the platform to sell on, the listing tools to list the item to sell, the store package or user id that you sell under, the feedback system and the wonderful returns policy system. All of this stuff is a service you are using and you are now charged GST for using that service. Ebay charge you a FVF for using these services and the GST is charged on the FVF only.

You are not being charged GST on the sale price of the items you sell. If we where to follow your $10 item + $1 GST + free post = $11 argument, the GST would be charged on the items you sell, and yes the buyer would pay it when you increased your prices by 10% to cover the cost of the GST or you would absorb the cost against your profit margin if you did not increase prices..

At the moment the GST should add around 1 % to your item cost, if you use free postage, so that is how much you need to increase prices by to cover the GST. If you charge your buyers for postage on top of the sell price, the GST would add around 1.5% to your sell price on average.

[clarry100]

Think of GST as a consumption tax.

Whoever is the end consumer of the goods or service pays the GST. Remember GST = Goods and Services Tax.

So a buyer who is the end consumer of the item they buy pays the GST (if you the seller are GST registered and include it in your item price).

Likewise the seller (you) pays the GST on the end consumption of the ebay services you are using. The buyer is not using those ebay selling services you are as the seller.

If you are a small time seller (under $75K in total sales revenue) and therefore not registered for GST you have no means to claim it back other than as a part of your business operating expenses when you do your annual income tax return. Your tax accountant will know about this.

If you are registered for GST then you can deduct the GST you pay ebay on your fees in your quarterly BAS statements.

Even better... if you register your ABN and GST regsitration with ebay then they will not even charge you the GST on their fees in the first place, as doing the above would be double handling.

[go-tazz]

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@phantomchris1984 wrote:

for example when i list an item for $10, ebay should add the 10% like so ($10+$1GST = Total cost: $11+ FREE POSTAGE)

i make the ten dollars minus normal fees, the gst goes to ebay then they pay that $1 to the government!!!

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That's not how it works.

For the $10 item you pay eBay a service fee of 99 cents and you then pay the GST on that 99 cents,(so you

pay 10 cents GST).

The GST is paid on the eBay fee and NOT on the item price,

[phantomchris1984]

why isnt the gst on the items instead of the service fee? really weird, wouldnt it be easier if it was on the item you sell, gst isnt supposed to hurt the seller but the buyer. i dont get that gst back. but a seller at a physical store would. it seems like its setup to benifit ebay and not the sellers.

why not just add the 10% to the item i sell and ebay just gives that gst to the government, so much simpler.

i sell for $10, it shows the 10% gst, showing total as $11 to seller, seller pays $11, $1 goes straight to gov. not me as the seller paying the gst instead that i dont get back.

but this is the liberal government so they only benifit big corporations.

[imastawka]

Ebay is taking 10% of your fvf's not the item

Ebay was forced by the Gov't to take gst for the service they provide (the 's' in gst)

So you're quite happy to let ebay take 10% of your sale price of $10 ($1) rather than taking 10% of your fees for that item ( 10c)  (just to round things up)

Just up your price to cover it.

https://community.ebay.com.au/t5/Selling/Further-Information-quot-Netflix-tax-quot-effective-1-July-...

http://www2.ebay.com/aw/au/201706.shtml#2017-06-16085830

[clubesquire]

The one thing I do understand and understand well is GST and BAS Reports.

eBay is absolutely right in doing what they are doing. Their turnover is such that they are required at law to be registered for GST and to charge GST on goods and services they sell. They are selling a service to you (You are their customer) and are complying with the law by charging you GST.

You however, will determine whether or not you will charge GST on the goods and services you sell to YOUR customers based mainly on whether or not you fall within the main (legislative) criteria to do so, which I think at the moment is a sell of $75,000 per annum and above, but not exclusively. You can if you want, although I don't know why, elect to be subject to GST under that amount.

All is above board, honestly.

Melina.

PS....and if you were registered for GST you'd be able to claim back the GST paid to eBay, or in other words off-set your own GST payable amount.