topic Re: Netflix tax in Selling

Netflix tax

stickerswa — Wed, 31 May 2017 07:08:24 GMT

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....

Re: Netflix tax

bluebudgies — Wed, 31 May 2017 07:18:29 GMT

The people who've whinged about ebay not paying taxes in Australia should be really happy now!

I think we'll just get the usual invoice but with the GST added on separately at the end.

Re: Netflix tax

rocket2retro — Wed, 31 May 2017 07:24:22 GMT

They've just fiddled with the fees recently including an increase to monthly store fees.

No doubt they will try to increase something to cover it.

With combined eBay/PayPal fees hovering around the 20% of purchase price, you'd think they must be at saturation point.

I would imagine they've lost many sellers already due to their high fees (particularly when FB is free)!

So many sellers are reporting poor sales and with another fee increase (or as eBay prrefer to put it -'restructure'), I'd imagine even more sellers might decide that enough is enough and seek alternative online selling avenues.

Re: Netflix tax

bluebudgies — Wed, 31 May 2017 07:28:55 GMT

They don't have to 'cover it'. All they need to do is write the fees as they currently are and then add the GST to the total, like most invoices do.

Re: Netflix tax

porcelain_dolls_by_me — Wed, 31 May 2017 07:31:00 GMT

Ebay will not be paying the GST tax - the sellers will

Re: Netflix tax

bluebudgies — Wed, 31 May 2017 07:34:25 GMT

pdme, I'm well aware of that. That's why it's never worried me that ebay pays no other tax in Australia. If they did, we'd be paying higher fees to cover it.

Re: Netflix tax

brumby45 — Wed, 31 May 2017 07:35:43 GMT

Just got the same email..Not convinced that it is genuine.Didn't name me in the introduction as all ebay emails do.

Re: Netflix tax

Anonymous — Wed, 31 May 2017 07:36:21 GMT

So if you have an ABN but are below the GST threshhold ( and don't fill out BAS returns ) will your fees go up 10% or stay the same ???

Re: Netflix tax

go-tazz — Wed, 31 May 2017 07:50:43 GMT

@brumby45 wrote:
Just got the same email..Not convinced that it is genuine.Didn't name me in the introduction as all ebay emails do.

Go to your inbox and right click on the Email and select view message source,(in the gobbledegook/HTML you'll

find your full name and user name that you use on the site).

About a fifth of the way down.

Re: Netflix tax

go-tazz — Wed, 31 May 2017 07:48:51 GMT

@Anonymous wrote:
So if you have an ABN but are below the GST threshhold ( and don't fill out BAS returns ) will your fees go up 10% or stay the same ???

It will only be 10% on the seller fees,(eg: final value fees and postage).

Re: Netflix tax

jfmgray — Wed, 31 May 2017 07:58:59 GMT

I'm confused (nothing new there). I thought th "Netflix" tax only applied to digital services like netflix & spotify - didn't tyhink it applied to eBay fees. As always the link on the email to get more info doesn't work for me and there is nothing on the announcement board. If it also applies eBay postal labels, then the additional 10% will arguably make these less attractive to Australia Post where the GST is included in the costs.

Re: Netflix tax

tazzieterror — Wed, 31 May 2017 08:03:50 GMT

I think you'll find eBay *is* providing a digital service.

Re: Netflix tax

Anonymous — Wed, 31 May 2017 08:12:21 GMT

Clicked the link to an account I am not logged in to and was presented with a registration form.

Same generic page for all 3 links.

http://cgi1.ebay.com.au/ws/eBayISAPI.dll?RegisterVatIdV4

So how exactly would ebay know exactly which account has which ABN.

Re: Netflix tax

harmlesssolutions — Wed, 31 May 2017 08:24:30 GMT

"As always the link on the email to get more info doesn't work for me and there is nothing on the announcement board."

That's likewise for me. Where do we find info on this "Netlix tax"?

Re: Netflix tax

aus-yoyoyo — Wed, 31 May 2017 08:36:34 GMT

My understanding about all this is that if you are purchasing digital stuff (or services) on eBay from an international seller, you *may* be charged 10% GST on the purchase *if* you are an Australian consumer. An "Australian consumer" is one that is *not* registered for GST. Apparently, if you are registered for GST this new "netflix" tax does not apply.

This page from the ATO may help:

https://www.ato.gov.au/Business/International-tax-for-business/In-detail/Doing-business-in-Australia/New-Australian-law-applying-GST-to-imported-digital-products-and-services/?anchor=Servicesanddigitalproductscoveredbytheme#Servicesanddigitalproductscoveredbytheme

... as for the bit in the email about GST on eBay fees - that doesn't seem to have anything to do with this Netflix tax and is just completely confusing.

I'm guessing they have sent this email out to all australian eBay sellers because they have an ABN and are potentially registered for GST. The link in the email that allows you to "registered for an exemption" seems to be related to exempting us (as buyers) from GST charged on things we buy overseas *IF* we are registered for GST.

I may have this completely wrong, but that's what I thinking it is about!

Re: Netflix tax

ozstockman — Wed, 31 May 2017 08:43:50 GMT

@stickerswa wrote:
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.

It is so badly worded both in their email and that page that I cannot even get what they are talking about. I am registered for GST so their fees must include GST. What kind of exempt status they are referring to?

Re: Netflix tax

porcelain_dolls_by_me — Wed, 31 May 2017 08:46:15 GMT

I would suggest that EBay will simply add 10% GST impost on top of their existing selling fees, meaning selling fees will effectively be increased by 10%. The GST they collect will then be remitted to the ATO.

They are asking for the ABN numbers of those registered for GST in order they can advise this information to the ATO. Business' registered for GST will be able to claim an input credit for the GST they pay to EBay and the ABN number will be used as a check for the claim.

All other sellers will just have to suck the extra cost!

Personally, I do not understand the basis for Ebay suddenly imposing this GST impost. EBay has argued (sucessfully) for years that as they are billing from outside of Australia, their fees are not subject to Australian GST. The same applies to PayPal. Numerous court challenges have upheld the positon of EBay.

Re: Netflix tax

porcelain_dolls_by_me — Wed, 31 May 2017 08:51:15 GMT

ozstockman..................

This is just another example of the contempt with which Ebay treat the Aussie sellers.

Their message about the GST makes no sense, and the link they provide for "more information" gives no additional info.

Roll on Amazon!!!!!

Re: Netflix tax

ozstockman — Wed, 31 May 2017 08:51:34 GMT

You are right, some links do not work in their email. It surprises me all the time that they do not even check their emails for wrong details and broken links. It tells a lot about the whole company when they send millions of emails with broken links in it without even testing it first or simply proof read. it..

Re: Netflix tax

ozstockman — Wed, 31 May 2017 08:55:41 GMT

pdme_dolls, I guess it should be completelly opposite to what they are actually saying. An exempt should be applied to those who are not registered for GST and they do not need to do anything, all others should provide an ABN and a business name. It makes sense that way only