GST
Is eBay legally allowed to charge you GST when you are selling your second hand items?
Why does eBay include the postage cost as part of your selling fee and charge you commission + GST on this.
Why does eBay include the overseas tax as part of your selling fee on an international sale!
38 comments
numis_phil
·2 years agoThe answer to all your questions is simple: Ebay wants to make money
aussie-sams-coins
·3 years agoLets all please remember Ebay is not there to help individuals to grow and prosper in a so called free market place.
Ebay is just a platform to control and make profit as fast and as much as it/they can.
They as reps for this platform will do what they are paid to do......... Profit, more profit and control the profit of others.
Ebay takes close to $10.000 Australian dollars a year in fees from My little Ebay store. It is a one man show. Now the Australian Tax office want to tax me 33% what I have left, thanks to PayPal contacting the tax office and advising the tax office of my Ebay Store.
I am to soon end my relationship with eBay as I cannot afford to keep working for rule makers and deal breakers. Please take heart in knowing what we already know.... The rich get richer, and the poor get poorer.
repentatleisure1952
·3 years agoGood job of answering the OP's questions.
It's annoying being busted for not declaring your income & having to pay tax... unlike others who do the right thing & support your little eBay store with what they have left over after paying tax on their income.
domino-710
·3 years agoI hope they bust back at least 3 years. lol
imastawka
·3 years agoOh, they will
sandypebbles
·3 years agoI won't ask why you did not notify the tax office of your earnings, as you were suppose to be doing
I am only surprised there was no real penalty
k1ooo-slr-sales
·3 years agowow, $10K in fees means you sell about $75K per year. I know not all of that is profit, but you'd be close to being required to register for GST and all that goes with that.
Surely you have an accountant. I hope you are not on any Centrelink Benefit. Govt agencies share information ya know.
If you have registered for GST, then I find it surprising that it took PayPal notifying the ATO for your activity to be found to be income taxable.
You got caught out, now own it!
domino-710
·3 years agoCould be a sizeable chunk of a bummer. lol
gutterpunkz05
·3 years agoObviously you don't like paying ebay fees, and it would also appear you don't like paying taxes. Don't be too quick to ditch ebay, you may well need that income stream.
sandypebbles
·3 years agoEspecially given they have announced their 'news' on a public forum
sugar249
·3 years agoWow, I would gladly be paying $10K in fee's that means I am making a sizeable chunk of dollars from my little store on Ebay, Always happy to pay a fee, it means I have made a sale.
As for you ripping of the tax man and as such also every other law abiding citizen, well I hope you have a guilty conscience and they fine you heavily
ashi_88
·3 years agoWhat you should be complaining about is;
How the postage amount is applied as a total order amount and then fees' are charged on whole said amount!
fromauntylynnie
OP3 years agoYes, totally agree - not right - should be illegal!
repentatleisure1952
·3 years agoOnce again... sigh.... there's that word again.
All selling platforms & those who handle payment processing charge fees on the TOTAL amount.
sugar249
·3 years agoLOL, you say it should be totally ilegal, but you think it's fine to sell an item for $10, and charge $45 postage, for something that through Oz post should be less then $10. Me think it's the pot calling the kettle black to suit themselves.
fromauntylynnie
OP3 years agoI do not have any items at $45 postage?? The highest is $15 and that is because of weight and size!
*sons_n_daughters*
·3 years agoNo one is suggesting that you are listing with $45 postage, but part of the reason the fees on postage came in was because a lot of sellers were. Sellers who listed with free postage were paying fees on the entire amount. Other sellers would list for 1c with $99.99 postage. They would only be paying fees on the 1c, which is basically impossible. They had to be stopped. And they were, for the most part. Some sellers still try it on, and then get a big surprise when they realise that the fees also extend to the postage cost.
As for GST, you are only paying GST on the FEES for the postage, not the postage amount. So, if you charge $9 for postage and the fees are 90c, you're only paying GST on the 90c (I know fees are a little higher than that, I was just trying to simplify it).
ashi_88
·3 years agoThanks for bringing forth my Next...
Postage should be controlled and purchased via ebay only! Weights and dimensions uploaded Ect.
Thus like any other freighting service, any discrepancies' are charged and customer can also refunded the difference!
But thats Dreamland!
So for now... COMPLAIN COMPLAIN COMPLAIN!
padi*0409
·3 years agoWhy ? If sellers have a My Post account then postage is cheaper directly from AP...and significantly so if they sell high volumes.
sugar249
·3 years agoSo you don't think the free market should be free. You want us to be forced to use a single supplier, I definitely wont be voting for you at the next election.
davewil1964
·3 years agoAs you seem to be doing.
I'm at a loss to understand what this has to do with GST, nor why you are advocating probably the most expensive services available to anybody with reasonable volume. Like yourself.
repentatleisure1952
·3 years agoMafeking has been relieved.
domino-710
·3 years agoThink we are back to Khartoum.
davewil1964
·3 years agoYou've been selling for over a year and only just noticed you are being charged what you were told you were going to be charged when you signed up? Good accounting, there.
BTW: the 'S' in GST is services, which is what eBay provide to sellers.
fromauntylynnie
OP3 years agoNo, I just got annoyed enough and couldn't find anywhere in ebay to actually complain too! 🐵
sugar249
·3 years agoCommission on postage is to combat sellers who sell an item for $10 and whack on a $45.00 postage fee for an item where postage should be $10.00.
countessalmirena
·3 years ago❝Tax on eBay fees
Depending on where you live, Goods and Services Tax (GST), sales tax, Value Added Tax (VAT) or similar consumption tax may apply to your eBay seller fees, regardless of the eBay website you use for listing or selling your items.
If eBay is required to collect such taxes in your jurisdiction, eBay will add the tax as a separate charge on your seller invoice or include the tax in our fees.
Please ensure that your registration address is up to date, so that we know where you are based.
Applying for tax exemption on your eBay fees
If you use your eBay account exclusively for business purposes, you may apply for tax exemption on your eBay fees by providing us with your tax registration number. (In Australia, this will be your ABN; in New Zealand, your GST number.)
eBay reserves the right to request additional verification regarding your taxable status from you or government authorities as permitted by law. All information related to your taxable status (including personal information and your tax or business registration number) will be processed in accordance with eBay's User Privacy Notice.❞
— https://www.ebay.com.au/help/policies/selling-policies/tax-policy?id=4348
gutterpunkz05
·3 years agoSimply because ebay fees apply to the total invoice, this has been in place for many many years with the full approval of the ACCC, so yes legal.
GST applys to ebay fees, as it comes under the S.
fromauntylynnie
OP3 years ago"GST applys to ebay fees, as it comes under the S." ...... sorry what is "under the S" please
gutterpunkz05
·3 years agoGST
repentatleisure1952
·3 years agoSigh...
1. GST is charged on the FEES & YES IT'S LEGAL.
2. Fees are charged on the total of the transaction for the last 10 years.
If you want to see more discussions on this then search for them.
3. Go to "Help" on any page & read up on Fees.
As to why it's because they can.
fromauntylynnie
OP3 years ago"3. Go to "Help" on any page & read up on Fees" ...... why this does not explain anything
repentatleisure1952
·3 years agoIt does if you take the time to read it.
It shows that fees are inclusive of GST, that the fees are charged on the total transaction amount & international sale fees.
Again, as to why these fees are charged... it's eBay's site & is covered in the T & C's.
myonlinefashion
·2 years agoHi there 😀
I have just recently saw my accountant, she is UniSA Professor
I asked her about having GST added to my listings when I am
not registered for the GST, and she advised me that I should
not be charged GST.
I have sent 3 emails to Ebay regarding this, no reply.
One of those emails was advising me that 'An upcoming payment will
be taken from your account". I'm sure you would be familiar with this.
Still no reply, and now I have received an email stating that the charge
didn't go through, yet I had asked them not to charge this until the GST
issue was resolved.
Absolutely ignored, and now I have been notified that I will be charged a fee for this?
I would appreciate as much info as [possible.
Please tell me why my accountant is wrong.
I appreciate your time, thankyou.
Kind Regards
Debra Fitzgerald
domino-710
·2 years agoYour item is located in China.
imastawka
·2 years agoYou are not communicating with ebay here.
These are member to member public forums
.Emails to ebay are bot driven. You won't get an answer that way.
A 'Help' button is at the top of every page - try there.
It would also be really helpful if you gave your accountant ALL relevant information.
As what has already been mentioned - your item is located in China.