Australian Tax Office requirements

Some time ago Ebay informed everyone that it must advise the ATO of all sellers that had sales in excess of $20,000 pa.  Recently I heard that the ATO has asked Ebay to advise them of all sellers that have sold in excess of $10,000 pa.  Has anyone else heard of this and if so when did Ebay send out the advice.  Thanks.

Message 1 of 96
Latest reply
95 REPLIES 95

Australian Tax Office requirements

Hello All,

Remember you pay tax on income LESS COSTS so if you sell $20,000 dollars worth on EBay and it costs you $15,000 to purchase your stock  you will pay tax on the $5000 profit LESS any expenses associated with your selling activity eg EBay and Paypal fees, postage, packaging materials, office supplies, internet subscription, cost of your accountant's fees. There may be other expenses.

 

Then there is GST and Input Credits!!!

Message 11 of 96
Latest reply

Australian Tax Office requirements


@stampingpaws wrote:

Hello All,

Remember you pay tax on income LESS COSTS so if you sell $20,000 dollars worth on EBay and it costs you $15,000 to purchase your stock  you will pay tax on the $5000 profit LESS any expenses associated with your selling activity eg EBay and Paypal fees, postage, packaging materials, office supplies, internet subscription, cost of your accountant's fees. There may be other expenses.

 

Then there is GST and Input Credits!!!


but only over $75,000 or whatever, anyone turning over that figure should have an accountant looking after them anyways.

- - - - - - - - - - - - - - - - - - - -
~~ ~~ ~~ Those who do right, have nothing to fear.
Message 12 of 96
Latest reply

Australian Tax Office requirements


@putney32 wrote:

@stampingpaws wrote:

Hello All,

Remember you pay tax on income LESS COSTS so if you sell $20,000 dollars worth on EBay and it costs you $15,000 to purchase your stock  you will pay tax on the $5000 profit LESS any expenses associated with your selling activity eg EBay and Paypal fees, postage, packaging materials, office supplies, internet subscription, cost of your accountant's fees. There may be other expenses.

 

Then there is GST and Input Credits!!!


but only over $75,000 or whatever, anyone turning over that figure should have an accountant looking after them anyways.



The figure for ebay to report turnover ( sales figures NOT profit )  to the ATO has for the last few years been $20,000  but as Lyndal has already mentioned this has changed a number of times over the years. ( Was $50,000 & $75,000 in the past )  With the increased focus on internet sales and the larger computers installed in the ATO and centrelink in recent times for Data matching, it is highly likely these organisations will lower the limits. Accountants have been actively warning that they believe centrelink is focusing on people recieving benifets while running ebay businesses and the ATO is increasing screening for people using ebay as a second job but not declaring the income. The same accountants are advising that there has been an increase in audits of ebay sellers recently so it seems the ATO and Centrelink is increasing its focus on this area. As others have already mentioned, if you are buying goods to sell for a profit on ebay in a regular manner, you will almost certianly be classed as running a business and should be declaring income for ATO and Centrelink purposes even if under the current $20,000 limit. The level of reporting resposibility rises even further if you pay fees for an ebay store site under existing taxation laws.

              On the seperate subject of GST, the ATO currently requires all businesses with a turnover ( total sales NOT profit ) of $75,000 or more to be registered for GST purposes ( and jump through all of the reporting and payment hoops etc. ). Businesses with a turnover of less than $75,000 can choose to register for GST. ( for example if you sold office supplies your customers would expect the GST system to apply )  If you are not GST registered but sell to larger businesses it can cause accounting glitches for your customers.

Message 13 of 96
Latest reply

Australian Tax Office requirements

Wow I did no realise I would cause so much drama.  Everyone is correct.  All taxable income should be declared and expenses claimed.  My reason for asking is that all finacial institutions already provide the ATO with details of interest paid and companies provide details of any dividends.  The same as medical funds provide data to the ATO.  If you use E-Tax then you can request to have all those details pre filled for you.  If Ebay is providing details of sales the next logical step would be that those details could be prefilled and you would then have to put in your expenses.  Of course you would still need to check the figures to ensure they are correct.  In this electronic age everything is recorded.  So it stands to reason the ATO will know what you are doing before you do it. Sit back, smell the roses and relax.

Message 14 of 96
Latest reply

Australian Tax Office requirements

One exception: your register and invoice your business in, of all countries & close to Australia, Switzerland. Ask eBay what the effects of such a move are...

Message 15 of 96
Latest reply

Australian Tax Office requirements

Gday

I have just received a notice from eBay - the limit is $10,000 this year.

Smiley Indifferent

Message 16 of 96
Latest reply

Australian Tax Office requirements

You're correct, just received the email today and the sales amount is now $10,000.

 

eBay has to provide all sales info from 2011-2012 and 2012-2013 financial years to the ATO.

Message 17 of 96
Latest reply

Australian Tax Office requirements

I received an email today 4th April 2014, purporting to be from eBay stating they are obigated to prived a range of details for those with sales over $10,000 per annum.

Message 18 of 96
Latest reply

Australian Tax Office requirements

What a joke ebay and the ATO combining to "hunt down" tax evaders of sales around $10,000 when ebay is amongst Australias biggest TAX CROOK. Maybe the ATO could spend their time more profitably, and more justly 'hunting for ebay'

Message 19 of 96
Latest reply

Australian Tax Office requirements

Quote: Recently I heard that the ATO has asked Ebay to advise them of all sellers that have sold in excess of $10,000 pa.  Has anyone else heard of this and if so when did Ebay send out the advice[?]. 

 

Yes, today, and today.

 

Ebay sent out emails before 1:00 pm Eastern Australian time on 4th April 2014, that the ATO are requiring reporting of sales over $10,000, applying to each of the financial years from 1 July 2011 to 30 June 2012 and 1 July 2012 to 30 June 2013.

 

Not surprising really - I am more surprised that so far there hasn't been an "outcry" on the seller board.

Message 20 of 96
Latest reply