Full GST even after coupon is applied?

[itzenterprises]

So I don't usually use the coupons the big ones they advertise are only for seller and items that have been marked up to compensate (which is illegal but somehow it's allowed on eBay). But I noticed with the more generic coupon I just used I was charged the GST (sorry the item was overseas) on the original sale price not the price after the coupon was applied. That would imply to me eBay is making free money. Can someone correct me if I'm wrong?

[lyndal1838]

GST is charged on the total of the item cost plus the postage, not just on the item price.

If the item is coming via the Global Shipping the GST is collected by Pitney Bowes and they charge a fee to collect it.

Ebay does not make anything from the GST as the money goes into a separate paypal account until it goes to the ATO.

As for your complaint about sellers increasing their prices to compensate for a discount voucher....I have never found this as the discount vouchers are funded by ebay.  The sellers get the full amount of their items.

I would say that any increase in prices is coincidental.

[gutterpunkz05]

The seller is paid the full asking price, when you use a coupon/discount   say for 10%, then 90% is paid by you the buyer, and 10% is paid by ebay.  So unless the discount offer states 10% + GST, then you the buyer are liable for the full extent of GST plus any additional import charges.

[itzenterprises]

But we are not paying the full price. So ebay might be compensating the seller for the discount from the coupon but how's that our problem? We can only charge GST on what is actually paid. And for example I'm paying 5% less using a coupon therefore I should only be charged the GST on the amount I actually paid not what I was 'going' to pay. That compensation is eBay's problem.
As for sellers increasing prices to compensate I can prove this numerous times. I've looked at an item that a coupon become available for so went back to the same item low and behold it's now exactly the coupons percentage more. Also proved with Kogan. When 'sales' happened where the item was cheaper on their website but on ebay once you applied the applicable coupon it was then the same price. I also spoke to a power seller the other day and they claimed that when eBay has a sale. They apparently go halves with ebay. Mind you I can't prove this or know first hand. This was an Australian seller. So don't know if there different rules for sellers in different countries or for items of a certain value.

[itzenterprises]

Sorry and I should clarify this was a free shipping item there was no shipping and handling charge so there for no additional service to charge gst on

[lyndal1838]

There is no such thing as free shipping....the seller has built the shipping into the price of the item so technically you are paying the GST on the shipping anyway.

The seller gets the whole amount of the item cost so GST must be paid on the total cost.  In effect you are paying the GST on the amount that ebay is paying towards the total cost.

I guess we buy from vastly different sellers....I have never had an item increase in price to take advantage of an ebay sponsored discount.

[itzenterprises]

........ I'm not sure how to respond to that it's listed as 'free shipping' yes sure its worked into the cost of the product but I don't receive an extra charge for it. So in turn I'm not paying for the shipping nor should I be taxed on something im not paying for so no idea how that's relevant. And guess what? IM NOT EBAY. So when they discount a product regardless of if they provide the seller with the full amount why am I being charged for it? As a retail business I can only charge tax on the price paid not its RRP....

[lyndal1838]

Yes, you are paying the GST on shipping.....on the amount that is built into the cost of the item.

Ebay expects you to pay the GST on the amount of the discount....it is still a good deal even if you have to pay the extra 10%

[gutterpunkz05]

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@itzenterprises wrote:
But we are not paying the full price. So ebay might be compensating the seller for the discount from the coupon but how's that our problem? We can only charge GST on what is actually paid. And for example I'm paying 5% less using a coupon therefore I should only be charged the GST on the amount I actually paid not what I was 'going' to pay. That compensation is eBay's problem.
As for sellers increasing prices to compensate I can prove this numerous times. I've looked at an item that a coupon become available for so went back to the same item low and behold it's now exactly the coupons percentage more. Also proved with Kogan. When 'sales' happened where the item was cheaper on their website but on ebay once you applied the applicable coupon it was then the same price. I also spoke to a power seller the other day and they claimed that when eBay has a sale. They apparently go halves with ebay. Mind you I can't prove this or know first hand. This was an Australian seller. So don't know if there different rules for sellers in different countries or for items of a certain value.

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I think your power seller, might be talking about arranged promotion deals with ebay, where ebay does receive a percentage of the sale price.  But when it comes to ebay general discounts to buyers, ebay and the seller dont receive any extras.  When ever someone has bought anything from me and used an ebay discount, I dont even know about it until after the item is sold.  So how am I or any other seller, supposed to know to increase our prices because someone is getting a discount

[gutterpunkz05]

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@itzenterprises wrote:
........ I'm not sure how to respond to that it's listed as 'free shipping' yes sure its worked into the cost of the product but I don't receive an extra charge for it. So in turn I'm not paying for the shipping nor should I be taxed on something im not paying for so no idea how that's relevant. And guess what? IM NOT EBAY. So when they discount a product regardless of if they provide the seller with the full amount why am I being charged for it? As a retail business I can only charge tax on the price paid not its RRP....

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So if someone gives you a $20 gift card to use at Bunnings for your Birthday, do you also expect them to give you an extra $2 to pay the GST for you.