topic Re: eBay to charge GST? in Selling

eBay to charge GST?

flashback_deals — Fri, 21 Sep 2012 03:23:49 GMT

There is an article in today's Herald Sun about online sites such as eBay to start charging Australian customers GST, I think the suggestion has been made to the goverment to do it

This means if it goes through, our bills will rise by 10%

Re: eBay to charge GST?

digital*ghost — Fri, 21 Sep 2012 03:30:29 GMT

That article is saying it wants eBay etc to add a 10% GST charge to items under $1000 that customers buy from overseas. (It would be for items under $1000 because GST is charged on goods over that amount along with import duties etc).

Re: eBay to charge GST?

flashback_deals — Fri, 21 Sep 2012 03:38:23 GMT

Now I understand, what happens if we sell something overseas, is that changing too? as far as i know there is no GST on sales if your customer is overseas.

I cant see how eBay can add GST when they are not the seller

Re: eBay to charge GST?

***super_nova*** — Fri, 21 Sep 2012 04:51:39 GMT

What it means is that every parcel that comes into the country from o/s would have to be assessed by the customs, and then collected from the PO, and the 10% fee would have to be paid on collection. It would be very expensive to do, lucky to break even, and that is why the government keeps rejecting the proposal; I bet AP is also not interested in becoming a tax collector, not to mention that all o/s parcels would have to be stored at the local PO until collected.

That is how it works in most o/s countries, but it was always like that, just the charges change.

Re: eBay to charge GST?

digital*ghost — Fri, 21 Sep 2012 04:58:21 GMT

Getting eBay and other sites to adf the GST at point of purchase would actually take a lot of administration out of the hands of local entities, which is probably why it's been suggested as an alternative to collecting it when the purchase reaches Australia.

Re: eBay to charge GST?

bsal6160 — Fri, 21 Sep 2012 05:07:35 GMT

Good on you Julia. Another nail in your political coffin if this goes ahead.

Re: eBay to charge GST?

digital*ghost — Fri, 21 Sep 2012 05:11:03 GMT

Now I understand, what happens if we sell something overseas, is that changing too? as far as i know there is no GST on sales if your customer is overseas.

I cant see how eBay can add GST when they are not the seller

Some Australian sites display a purchase price that doesn't include GST, so when an Oz resident purchases the GST is added during the checkout process.

eBay doesn't have that functionality, so the prices of all items listed here are essentially GST inclusive (so you could say that OS buyers technically pay it anyway).

There is already a system in place on eBay and other sites for sales tax to be added to a purchase price based on the customer's location, I don't know much about how that works - where the extra $'s go, how it gets handled, who does the paperwork and so forth, but I'm assuming they're suggesting the same (or a similar) system be implemented for Oz buyers.

Re: eBay to charge GST?

rabbitearbandicoot — Fri, 21 Sep 2012 06:36:38 GMT

"eBay doesn't have that functionality, so the prices of all items listed here are essentially GST inclusive (so you could say that OS buyers technically pay it anyway)."

I see. So what you are saying is that all sellers are registered for GST and do their bas returns religiously, and send off the GST $ to the govenment. I am impressed. Here was I thinking that no-one on here paid GST.

Re: eBay to charge GST?

lyndal1838 — Fri, 21 Sep 2012 06:43:42 GMT

Small time sellers who are not GST registered do not have to worry about it, but large sellers who are registered have to remit the GST to the government as every other GST registered entity does.

If you do your reading you will see the ebay purchases are GST inclusive.

Re: eBay to charge GST?

ecutalk — Fri, 21 Sep 2012 06:45:53 GMT

only those who sell over the GST threshold have to be registered for GST.

government should make up its mind what it wants to do... first they're talking about GST on imports above $30 (productivity commission says itll cost more to enforce than it will make from it). now they want online retailers to collect the money. they obviously dont know how ebay works if they think thats going to work.

Re: eBay to charge GST?

lyndal1838 — Fri, 21 Sep 2012 06:49:50 GMT

But ebay is not a selling entity....it is the individual sellers who would have to collect and remit the GST...and the larger sellers already do this.

Re: eBay to charge GST?

digital*ghost — Fri, 21 Sep 2012 06:51:04 GMT

"eBay doesn't have that functionality, so the prices of all items listed here are essentially GST inclusive (so you could say that OS buyers technically pay it anyway)."

I see. So what you are saying is that all sellers are registered for GST and do their bas returns religiously, and send off the GST $ to the govenment. I am impressed. Here was I thinking that no-one on here paid GST.

Oh yes. That's what I'm saying. 😐 (This is not the first time you've drawn incorrect conclusions from something I've posted, so perhaps you'll excuse the sarcasm and 😐 ...perhaps not).

I said that the prices on eBay are GST inclusive, in that it's impossible to charge two separate amounts to make up a purchase price on eBay Australia.

Then I said that technically you could say that overseas buyers already pay GST on goods purchased in Australia.

I didn't say anything about what sellers then do with the GST component of their prices, nor go on to apply that activity to all sellers on eBay, so I'm confused as to why you did.

As such, the only conclusion for you to draw from what I said is that technically, all prices for items from Australian sellers are GST inclusive, ergo prices paid by overseas buyers technically include a GST component. What then becomes of said GST component will depend on a seller's individual circumstances, but in so far as GST "collected" from an overseas buyer, that would then mean a slightly higher profit margin for the seller if it doesn't have to be passed on. Ditto that for sellers that don't have to register for GST.

Ok?

Re: eBay to charge GST?

rabbitearbandicoot — Fri, 21 Sep 2012 07:01:04 GMT

Oh yes. That's what I'm saying. 😐 (This is not the first time you've drawn incorrect conclusions from something I've posted, so perhaps you'll excuse the sarcasm and 😐 ...perhaps not).

I said that the prices on eBay are GST inclusive, in that it's impossible to charge two separate amounts to make up a purchase price on eBay Australia.

Then I said that technically you could say that overseas buyers already pay GST on goods purchased in Australia.

I didn't say anything about what sellers then do with the GST component of their prices, nor go on to apply that activity to all sellers on eBay, so I'm confused as to why you did.

As such, the only conclusion for you to draw from what I said is that technically, all prices for items from Australian sellers are GST inclusive, ergo prices paid by overseas buyers technically include a GST component. What then becomes of said GST component will depend on a seller's individual circumstances, but in so far as GST "collected" from an overseas buyer, that would then mean a slightly higher profit margin for the seller if it doesn't have to be passed on. Ditto that for sellers that don't have to register for GST.

Ok?

Can you not tell sarcasm when you read it?

So the larger sellers, the ones with turnovers of $300,000 plus per year, are collecting and sending off their GST as they should? Do you mind if I say 'RUBBISH'.

Re: eBay to charge GST?

digital*ghost — Fri, 21 Sep 2012 07:08:10 GMT

Can you not tell sarcasm when you read it?

So the larger sellers, the ones with turnovers of $300,000 plus per year, are collecting and sending off their GST as they should? Do you mind if I say 'RUBBISH'.

Sarcasm, huh. sorry rabbit, you - like everyone else - do not have the power to imbue your posts with a demeanour that guarantees it's read in the spirit it's intended without clear and indisputable indicators, which you didn't use.

I don't buy your plea of sarcasm anyway - as far as I'm concerned, the "so what you're saying is..." precludes your post from that since it automatically and immediately inferred I had made certain statements - statements that were nowhere to be found in my post, yet were responded to with your 'sarcastic' post.

Do I mind if you say "RUBBISH"? Why, not at all, since once again I did not make any statements about what sellers are or are not doing with GST, your response of RUBBISH has nothing to do with anything I said. 😉

Re: eBay to charge GST?

rabbitearbandicoot — Fri, 21 Sep 2012 07:12:09 GMT

I love it when you talk proper english ]:)

Re: eBay to charge GST?

digital*ghost — Fri, 21 Sep 2012 07:20:33 GMT

🙂

so wot ur sayin iz, if i dont write proply n stuff, u won't find az much entertaynment wif goading me in2 putting up carefully considered responses that are ritten good.

Re: eBay to charge GST?

not_an_eloi — Fri, 21 Sep 2012 07:24:09 GMT

the contrarian means "i love it when you speak english well"

]:)

Re: eBay to charge GST?

rabbitearbandicoot — Fri, 21 Sep 2012 07:44:42 GMT

🙂

Of course that's what I meant, and I'll have you know

that me ma tort me ta talk english rite proper like.

Re: eBay to charge GST?

lyndal1838 — Fri, 21 Sep 2012 07:52:26 GMT

So the larger sellers, the ones with turnovers of $300,000 plus per year, are collecting and sending off their GST as they should? Do you mind if I say 'RUBBISH'.

There is probably no more nor no less GST compliance among ebay sellers than among the wider community.

Re: eBay to charge GST?

punch*drunk — Fri, 21 Sep 2012 08:04:20 GMT

There is probably no more nor no less GST compliance among ebay sellers than among the wider community.

GST compliance is probably higher amongst ebayers, we get reported to the ATO every year.