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GST for private individual not in business
Summary: The discussion is about the applicability of GST (Goods and Services Tax) for private individuals who are not engaged in business activities. However, the content provided for the discussion posts is not specified.
I sold something for the first time in over a year and discovered GST is being withheld from my payment. I am a private individual, not operating any business activty. I do not have an ABN and am not entitled to have one. I am not registered, or required to be registered for GST. I am legally not allowed to charge GST on any of my sales nor do I have to remit any GST to the ATO.
I logged into the chat function and spent an hour and a half going through the issue with someone, who actually hung up on me, when a second consultant came on the line with the same outcome. There is a link to put in a GST exemption but it's aimed at businesses who may be GST exempt for any number of reasons - nothing for individuals not in business. The chat consultant was clearly reading from a script. All I wanted was for the GST to be removed from the sale and they said they "could not change the policy."
I logged a phone call, but more than two hours later still nothing (45 minute wait time was mentioned.)
Before anyone jumps on me, I'm a tax professional and understand how GST works. I also know full well WHY the GST is being added, to prevent dodgy businesses from avoiding their legal tax obligations - I've been involved in numerous tax audits (as a tax professional) of businesses where eBay sales are not reported, so have first hand experience. As a private seller I am not bound by the GST rules but there is nowhere for me to advise eBay. They are clearly applying a policy across the board to all sellers, regardless of their ABN/GST registration status.
There is no way to have the GST refunded to a private seller under normal ATO reporting processes. The GST law is structured so that private sellers are usually excluded from the legislation.
Terribly frustrating experience, when it should be much more transparent.
kh-syedse
·1 year agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread, if you wish to continue to discuss this topic.
Thank you for understanding.
santon
·1 year agopotentially the gst you are referring to, is the gst they themselves have to pay for the service they provide, not your own. Although you are the seller, you are buying a service off them, which they will charge you for, including gst as they must pay since they are making a profit.