topic Re: EBay Commerce GST on Sales in Selling

EBay Commerce GST on Sales

rebfitzp24 — Sat, 01 Jun 2024 08:54:28 GMT

Please tell me. I have an eBay commerce store in Australia. I am registered to collect GST with the ATO.

Does eBay pay the GST they collect on my behalf to me or to the ATO?

if they pay it to the ATO, how do you code this in your own books since you aren’t receiving the GST to pay the ATO? Do you code it GST Free Sales… or BAS Excluded.

With the shipping costs that eBay deducts from my invoice. It that figure deducted including GST or does eBay offset that against the GST they collect on my behalf and pay to the ATO.. ? That’s if they pay it to the ATO.

Please only answer if you know what you’re talking about. Thank you

Re: EBay Commerce GST on Sales

k1ooo-slr-sales — Sat, 01 Jun 2024 09:33:14 GMT

Please only answer if you know what you’re talking about. Thank you

you should not expect expert or 'qualified' advice from a public discussion board.

You would be better served by seeking out a certified tax practioner.

Re: EBay Commerce GST on Sales

countessalmirena — Sat, 01 Jun 2024 09:39:53 GMT

https://www.ebay.com.au/help/policies/selling-policies/tax-policy?id=4348

https://www.ebay.com.au/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

eBay does not pay your GST obligations. You should talk to your accountant/tax agent. Keep in mind the $75,000 threshold. Don’t look for tax advice on a public forum, because you won’t be getting professional expertise; you’ll be getting posts from anonymous people unknown to you.

Re: EBay Commerce GST on Sales

rebfitzp24 — Sat, 01 Jun 2024 09:52:13 GMT

It’s not tax advice it’s what on the eBay sales invoices which I don’t have access to! Anyone that knows what they are taking about can answer that from that m!

you can’t so DO NOT Answer

Re: EBay Commerce GST on Sales

sugar249 — Sat, 01 Jun 2024 09:57:20 GMT

@rebfitzp24 wrote:

Please only answer if you know what you’re talking about. Thank you

I do know the answer as I have discussed it and paid my accountant for advice.

But with this attitude, I am not willing to share, and besides it depends on everyones own circumstance, as there are variations and you have provided insufficient information

Re: EBay Commerce GST on Sales

countessalmirena — Sat, 01 Jun 2024 10:02:43 GMT

You’re off to a wonderful start by being rude.

Furthermore, you don’t know what I know - or indeed, what anyone on these boards knows. What if I were to post that I’m a taxation expert employed by the ATO?

I’m giving you better advice than you seem willing to acknowledge.

Best of luck in all sincerity.

Re: EBay Commerce GST on Sales

davewil1964 — Sat, 01 Jun 2024 10:05:18 GMT

I know what you're talking about and the previous responses cover what you need to know.

I am definitely not going to provide free accountancy advice to anybody here, much less somebody with your attitude.

Don't like the answers, don't ask the question.

Re: EBay Commerce GST on Sales

domino-710 — Sat, 01 Jun 2024 10:18:13 GMT

I'd answer - but only if you know what you're talking about.

Seems not - because you are asking - here.

Re: EBay Commerce GST on Sales

brickworksmarket — Sat, 01 Jun 2024 10:25:31 GMT

The following should be helpful and will provide the answers you need.

https://www.ebay.com.au/help/policies/selling-policies/tax-policy?id=4348&st=3&pos=3&query=Tax%20policy&intent=gst&lucenceai=lucenceai&docId=HELP1275

https://www.ebay.com.au/help/selling/fees-credits-invoices/taxes-import-charges?id=4121&st=3&pos=2&query=Taxes%20and%20import%20charges&intent=gst&lucenceai=lucenceai&docId=HELP1302

Re: EBay Commerce GST on Sales

gutterpunkz05 — Sat, 01 Jun 2024 11:55:37 GMT

you can’t so DO NOT Answer

+++++++++++++++++++

Lovely attitude, from someone who has no idea what they are talking about. ( so have a bit of attitude back)

Ebay do not collect GST on your behalf at all.

If selling Internationally ebay may apply International taxes as required, but this has nothing to do with OZ GST or the ATO.

I know exactly what you are getting confused with.......................Nah figure it out for yourself.

Re: EBay Commerce GST on Sales

gutterpunkz05 — Sat, 01 Jun 2024 11:58:19 GMT

What if I were to post that I’m a taxation expert employed by the ATO?

=======================================================

I know nothing, it wasn't me.

Re: EBay Commerce GST on Sales

gutterpunkz05 — Sat, 01 Jun 2024 12:07:20 GMT

Just to add, not a tax expert and don't work for the ATO......................................

But I have twice been audited for GST compliance.

Re: EBay Commerce GST on Sales

k1ooo-slr-sales — Sun, 02 Jun 2024 03:29:24 GMT

@rebfitzp24 wrote:
It’s not tax advice it’s what on the eBay sales invoices which I don’t have access to! Anyone that knows what they are taking about can answer that from that m!

you can’t so DO NOT Answer

I'm pretty sure that if the ATO contacted you about GST compliance, replies such as "but a guy on eBay Discussion Forums told me ....." would see you make the monthly honour board in their lunch room.

Have you filled out your TSFE form yet? You should.

Re: EBay Commerce GST on Sales

countessalmirena — Sun, 02 Jun 2024 03:57:46 GMT

@gutterpunkz05 wrote:
What if I were to post that I’m a taxation expert employed by the ATO?
=======================================================
I know nothing, it wasn't me.

💵%🙈😉

Re: EBay Commerce GST on Sales

chameleon54 — Sun, 02 Jun 2024 08:31:11 GMT

Disclaimer - I,m also not a registered accountant, but have 5 ABN's, four Tax file numbers for various business entities, and have been GST registration since it was introduced.

My understanding - If GST registered, you are required to factor in the GST component of the item into your sales price. ie. You add 10% to price of item and collect the GST. or take a haircut for 10% of item price if you cant pass it on. It is worth noting if your profit margin is 50% of total price, a 10% haircut will dramatically reduce your profit margins. You will also incur additional record keeping and accountancy expenses.

You are then required to declare and forward any GST payable after allowing for offsets of GST on your expenses to the ATO on your BAS either quarterly or annually depending on your own registration details. ( assuming you do not have millions of dollars in sales )

There is currently a $75,000 threshold where small businesses do not have to register for GST. Unless the vast majority of your items are purchased by GST registered entities who require tax invoices, there is little benefit and lots of pain from being GST registered for less than $75,000 turnover.

While it is possible to work out how the GST system works at a basic level from ATO fact sheets etc, as others have said, it is highly recommended you to talk to an accountant or registered tax agent.

Re: EBay Commerce GST on Sales

domino-710 — Sun, 02 Jun 2024 08:44:34 GMT

@chameleon54 wrote:
Disclaimer - I,m also not a registered accountant, but have 5 ABN's, four Tax file numbers for various business entities, and have been GST registration since it was introduced.

My understanding - If GST registered, you are required to factor in the GST component of the item into your sales price. ie. You add 10% to price of item and collect the GST. or take a haircut for 10% of item price if you cant pass it on. It is worth noting if your profit margin is 50% of total price, a 10% haircut will dramatically reduce your profit margins. You will also incur additional record keeping and accountancy expenses.

Given - your understanding - having done this - I now pay fees on included GST. ??

Is 10% enough. ??

Re: EBay Commerce GST on Sales

chameleon54 — Sun, 02 Jun 2024 08:55:45 GMT

One other little technicality.

You add 10% to purchase price to cover GST, but to work out the GST component of item price, ( or sales ) you divide by eleven.

Example you sell an item for $90 and add $9 to cover the GST giving final price of $99.

Divide $99 by eleven and you arrive at the GST component of the item price being $9

Any potential GST paid on selling fees to ebay or other expenses is offset against your GST payable on sales on your BAS. ..........ie. GST paid in expenses is a deduction on your BAS.

Re: EBay Commerce GST on Sales

domino-710 — Sun, 02 Jun 2024 21:00:55 GMT

Of course you do - a little technicality. lol

Not everyone submits a BAS.

Re: EBay Commerce GST on Sales

davewil1964 — Mon, 03 Jun 2024 07:25:43 GMT

Those registered for GST are required to - LOL

Re: EBay Commerce GST on Sales

domino-710 — Mon, 03 Jun 2024 07:36:31 GMT

Those not registered for GST - don't have to - but wear the unclaimable GST. LOL