Import GST charge calculation based on pre-discount price, this doesn't seem right?

Ebay seems to be charging GST based on the "pre-discounted price", for example I purchased an item..

 

Item Price: $10.38

 

I used a 5% discount voucher (coupon code), so effectviely $9.86 pre-tax

 

Credit card charges

1) 9.86 (paid to seller)

2) 1.04 (paid to ebay for "GST")

 

Total $10.90 charges

 

If I were to buy a 10.38 +10% GST item in any Australian store it would cost = $11.42

Then if I get a 5% discount it would = $10.85

 

Not $10.90.. so there is currently a 5 cent error in ebay's favour.

 

I'm not worried about my 5c of course, but multiply that by the whole of Australia and ebay is skimming a tidy profit there!!

 

For me the reason this is annoying though, is that I buy items for my business and because the tax is not adding up to 10%, my accounting package requires me to jump through hoops to reconcile it.

 

 

Fair enough it it were "correct", but I don't think ebay is correct in this calculation?

 

 

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?

@foxfrontier

 

if you want an example of eBayโ€™s choice of wording being out of date and/or deceptive and misleading then take on the โ€œfree postageโ€ crusade.

 

Then there is their appropriation of the expression โ€œclick and collectโ€  which has a specific meaning when dealing with business warehouses, but a different meaning when used on eBay listings!

 

Now these confuse the hell out of buyers more than the use of the word โ€œdiscountโ€.

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@lyndal1838 wrote:

You keep carrying on about not getting a Tax Invoice fom ebay.

 

Have you done what I suggested any posts ago.....look at your paypal receipt.   It has everything you need for the ATO.

There is a record of the cost price f the item, any postage paid, the discount/voucher amount paid by ebay for you and ends with the total cost of the transaction paid to the seller.

 

Under that information is a statement of the GST included in the transaction.....10% of the TOTAL amount sent to the seller, regardless of where that money came from.


So are PayPal selling me this item now? lol, another one who just doesn't get it.. there are actual rules and penalties for getting these things wrong..

 

The PayPal receipt is not a "tax invoice" or "tax receipt", these are actual "things" in the tax code that have "legal requirements", please..

 

When I accept Visa (and PayPal too) in my businesses, they take ZERO responsibility for my product delivery and any tax reporting.. if it's different for the eBay/PayPal relationship, then again I'd love to be shown the fine print. Are PayPal even the "only" option people have right now? (for these kid of international purchases) I'll assume they are, to save the discussion, the point is I don't accept that a receipt from PayPal covers this, we agree to disagree if you hold the counter opinion.

 

 

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?

If you don't want a Paypal reciept because Paypal is not selling you the item, why would an ebay recipt be any different when ebay did not sell you the item either? 

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@enigmabear wrote:

Then you would need to report the company that moderates this forum to the ATO, would'nt you

 

Be interesting to know if you told the ATO that you bought the item 'from ebay'

 

and that people 'being paid by ebay' to comment are saying such and such



lol, I gave them the link to the thread as in, "here is what I have observed and here is the informaton I have gathered, I have also asked eBay to explain".. you know, so I wouldn't have to re-type it and it's all there as a handy place to see it with any updates.

 

Sorry it was late and I was laughing at some people who have clearly spent a LOT of their free time helping out go 'ol eBay.. you know I actually pay people to handle support in my businesses.. strange concept that. ๐Ÿ˜œ

 

I don't care what anyone is saying here at all from any legal perspective, the only thing that matters is what "eBay" is saying in it's communications. I've asked for someone to point me to the fine print that describes in detail how the discount system applies to the Australian GST system, I've heard the opinions of the community, we all know the math, let's see the fine print. Let's see the fine print that says "who" sold us the product, "who" gave us a voucher, etc.. the value of the "voucher" is not even explicitly itemised.

 

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@enigmabear wrote:

If you don't want a Paypal reciept because Paypal is not selling you the item, why would an ebay recipt be any different when ebay did not sell you the item either? 


Now you're starting to make progress.. who "legally" actually sold the item? My last post is more detailed, but eBay isn't uninvolved in this transaction, they have provided some kind of "voucher". Did eBay sell me that voucher, who knows, nobody can show me the fine print (from eBay) to define it properly.

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?

foxfrontier, have you considered or investigated generating your own tax receipt?

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@foxfrontier wrote:

@enigmabear wrote:

If you don't want a Paypal reciept because Paypal is not selling you the item, why would an ebay recipt be any different when ebay did not sell you the item either? 


Now you're starting to make progress.. who "legally" actually sold the item? My last post is more detailed, but eBay isn't uninvolved in this transaction, they have provided some kind of "voucher". Did eBay sell me that voucher, who knows, nobody can show me the fine print (from eBay) to define it properly.


Just to expand on that, it's the assumptions and loosey goosey wording that opens up tax loopholes, money laundering opportunities, tax avoidance, etc.. and no I don't think anyone is ripping off anyone else in this case, but there is certainly inadequate communication that could be improved. Is that too much to ask?

 

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@k1ooo-slr-sales wrote:

foxfrontier, have you considered or investigated generating your own tax receipt?


To be honest it doesn't even matter for transactions under $100, but yes you could do an recipient created tax invoice (RCTI) I believe.

 

I'd prefer eBay to just get it right to begin with though,

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@foxfrontier wrote:

So are PayPal selling me this item now? lol, another one who just doesn't get it.. there are actual rules and penalties for getting these things wrong..

 

 

 


By that logic anytime you buy goods with a bank card, then your bank becomes the seller................sheesh

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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@padi*0409 wrote:

@foxfrontier wrote:

So are PayPal selling me this item now? lol, another one who just doesn't get it.. there are actual rules and penalties for getting these things wrong..

 

 

 


By that logic anytime you buy goods with a bank card, then your bank becomes the seller................sheesh


Yes and that was my point, "PayPal are NOT the seller". Did you even read what I wrote in the following paragraphs, if this sentence wasn't clear enough on it's own..

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