why do you charge gst on the full price and not the discounted price

when i purchase an item in a shop i am charged gst on the discounted price not the RRP.  on EBay the gst is charged on the full price of the goods before the discount is applied.

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Answers (2)

If you're using a voucher to get a discount, ebay are paying part of the price to the seller.  The item is still selling for full pirce so GST has to be paid on the full price.  You can't expect ebay to pay part of the price for you and then GST on top of their portion.

lyndal1838
Honored Contributor

The GST is charged on the total of the item price plus the postage.