Buying and GST

[melko55]

1) Can I create a "business sellers Account" to buy from ebay

2) If I can buy using a sellers account and I have given ebay my ABN and I buy from overseas, will giving the ABN stop ebay charging my business the gst on overseas purchases?

[melko55]

1. Can I use use a Business Selling Account to make purchases

2. If I can do that and ebay have my ABN will Ebay not charge me gst

[countessalmirena]

@melko55,

You can create an eBay account as a business and sell on eBay. You can purchase on eBay using that eBay account, since any eBay account can both buy and sell (unless the account has had some sort of restriction imposed on it).

From eBay's All about selling page:

❝Set up your seller account

Before you start selling, you'll need an eBay account. If you don't already have one, you'll need to register. You can choose between a personal or business account.

If you plan to sell casually, like selling items you no longer need or want, a personal account is the best option. Pick a business account if you want to sell large quantities, or have items that you've made or bought to resell.

To create an eBay account:

1. Go to the Registration page.
2. Select Personal account or Business account.
3. Enter the required details and select Register.❞

From eBay's User Agreement (section 17, GST on low value imports):

❝If you are a buyer, you may see "GST may apply" when viewing items on eBay that are located overseas. You acknowledge and agree that if you buy a low value item on eBay from outside Australia, you will be charged 10% GST on top of the seller's item price (applied in your cart and at checkout). If there is any dispute as to the GST you have paid on an order, you should contact eBay.❞

Most importantly, from eBay's Tax policy page:

❝Information for business purchasers

If you are registered for GST, then GST will not apply to the sale of low value goods that you import for use in your business in Australia. Please review the business purchaser requirements on the ATO website, then contact us with the following information:

• Your ABN (eBay will check that it is active and registered for GST);
• That the order was intended for use in your business in Australia.❞

You should choose the Have us call you option to contact eBay.

eBay say: We'll call you at the phone number registered to your account, or you can enter a different number.

We’re available from 8am to 10pm AET, 7 days a week.

[maranock]

Yes you can Purchase on every type of account.

It depends, you will be charges GST if you buy from a business selling on Ebay (the GST in that case has nothing to do with Ebay), you will also be charged GST if you buy anything from overseas via Ebay, giving your ABN to them does not mean that GST will be not added your purchase. You can claim back the GST on your BAS. 

Buying from a private seller is the only way you will not be charged GST, just like any other purchase.

[countessalmirena]

As replied in your other thread: in the Technical Issues board...

@melko55,

You can create an eBay account as a business and sell on eBay. You can purchase on eBay using that eBay account, since any eBay account can both buy and sell (unless the account has had some sort of restriction imposed on it).

From eBay's All about selling page:

❝Set up your seller account

Before you start selling, you'll need an eBay account. If you don't already have one, you'll need to register. You can choose between a personal or business account.

If you plan to sell casually, like selling items you no longer need or want, a personal account is the best option. Pick a business account if you want to sell large quantities, or have items that you've made or bought to resell.

To create an eBay account:

1. Go to the Registration page.
2. Select Personal account or Business account.
3. Enter the required details and select Register.❞

From eBay's User Agreement (section 17, GST on low value imports):

❝If you are a buyer, you may see "GST may apply" when viewing items on eBay that are located overseas. You acknowledge and agree that if you buy a low value item on eBay from outside Australia, you will be charged 10% GST on top of the seller's item price (applied in your cart and at checkout). If there is any dispute as to the GST you have paid on an order, you should contact eBay.❞

Most importantly, from eBay's Tax policy page:

❝Information for business purchasers

If you are registered for GST, then GST will not apply to the sale of low value goods that you import for use in your business in Australia. Please review the business purchaser requirements on the ATO website, then contact us with the following information:

• Your ABN (eBay will check that it is active and registered for GST);
• That the order was intended for use in your business in Australia.❞

You should choose the Have us call you option to contact eBay.

eBay say: We'll call you at the phone number registered to your account, or you can enter a different number.

We’re available from 8am to 10pm AET, 7 days a week.

[k1ooo-slr-sales]

Spoiler

before anyone comments about countess posting the same information twice, please look at the Thread Titles on the two posts.


What has happened here is the Opening Poster started two threads on different boards and the mods have merged the two without any indication other than the start of one of countess’ posts, and the two Thread Titles.

[davewil1964]

... and the fact that the OP is dated after the added one.

I recall somebody stating that eBay will refund the GST to business buyers (in accordance with the countess' advice) BUT it has to be done on a case by case basis. The OP will have to ring eBay every time they purchase.

I'd just include the cost as a business expense, which is deductible, after all.

[padi*0409]

"before anyone comments about countess posting the same information twice, please look at the Thread Titles on the two posts.


What has happened here is the Opening Poster started two threads on different boards and the mods have merged the two without any indication other than the start of one of countess’ posts, and the two Thread Titles."

Lord bless us slr, the mods have found a new way to "enhance our eBay experience" "enhance our board experiences."

[*tippy*toes*]

If you're going to sell on eBay, I would strongly suggest NOT creating a business account. You lose too many perks by doing so. You can still trade as a business, with an ABN, on a personal account. Once you register an account as a business account, you can never change it back. You can also never hold a personal account again, even if the intention is to use it as a personal account. Once a business, always a business. That means, you won't have access to free relists. You won't have access to free listing promotions. You won't be able to do other things. I think that also applies to any other accounts in your house that other family members use.

[countessalmirena]

That's sobering and rather scary!

What happens if a business goes kaput? The person is forever cast into the circle of hell where eBay business accounts are  condemned to be rolled onto boiling-tar-covered ground, falling into thick sludgy waters that stink of putrefaction, feasted upon by sharp-toothed, sharp-clawed Harpies, and tormented by taunting voices that whisper, "You'll never relist freely. You'll never be granted free listing promotions. Foul business be thy lot without ceasing, o condemnéd grubstaker..."