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

[foxfrontier]

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?

[enigmabear]

So have ebay responded to you yet?

Might be handy if you also give the ATO a link to the comments from ebay (assuming it will be a loive chat) or the ebay rep's name if it is over the phone

Or were the ATO told that responders here where ebay staff giving the information?

P.S. ebay is still not the seller either

[lyndal1838]

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@foxfrontier wrote:

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@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.

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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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So I don't get it?

I know all about the rules and penalties associated with the GST....I have been dealing with GST matters in 2 different businesses for 18 years now.

If you are dealing with overseas businesses you do not get a Tax Invoice as very few overseas businesses are registered for Australian GST.....you need to get your "proof" of GST payment from other sources.   I am sure the ATO will accept that you have paid GST on the transaction when it is stated in 2 different receipts.   Ebay is the GST registered entity and the paypal receipt shows that the GST has been paid into the ebay account for remittance to the ATO. Paypal has a banking licence in Australia.....it is a registered money transfer service.

[lyndal1838]

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@foxfrontier wrote:

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@k1ooo-slr-sales wrote:

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

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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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  All this fuss when it does not even matter?   From the way you are behaving anyone could be forgiven for thinking your life depended on it.

It really would be so much easier to do your own RCTI.....I do it every week for the entire income of one of our businesses.

[digital*ghost]

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@foxfrontier wrote:

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@k1ooo-slr-sales wrote:

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

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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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$75.

Your PayPal receipt shows the amount you paid to the seller, and the amount paid (to eBay) in GST.  I personally don't need any more information than that for my accounting, but each to their own. eBay are obliged to provide you with a tax invoice if you request one, but they are only collecting the tax, not the cost of goods, so item price may or may not be reflected on that. 

BTW, maybe you should also ask the ATO what happens when a buyer uses one of these discount codes on an Australian purchase, where items are listed as GST-inclusive (where applicable).

I get the full amount, don't know if a code has been used, so I issue invoices for the full amount.... Buyers don't pay the full amount though. How much difference does how a payment is funded make to me as the seller, the one issuing the tax invoice? 

Spoiler

I sometimes have a tendency to overthink and overcomplicate things, too. 😉 

[foxfrontier]

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@lyndal1838 wrote:

  All this fuss when it does not even matter?   From the way you are behaving anyone could be forgiven for thinking your life depended on it.

It really would be so much easier to do your own RCTI.....I do it every week for the entire income of one of our businesses.

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hehe I could ask the same of you, why do you spend you free time here "filling in" for a billion dollar multi-national company's support obligations?

I use RCTIs in my businesses too. I supply regular  GST inclusive and GST free services. I export services to international companies. I've dealt with the GST on an implementation level since it was introduced. I have to deal with edge cases all over the place. I don't import into Australia, yet, maybe one day I will.. so this is intersting to know from a technical and professional perspective. ie. not just the 5 cents that led me here. I hope that has cleared things up for people! 😉

I came here thinking eBay was "100% wrong" in their calculation. I now think they are "probably ok" but let's see the fine print.. and the proper buyer communications that the rest of us have to provide when we do business in Australia.

[lyndal1838]

And thereby lies the whole crux of the matter.....your business was not done in Australia.  You are dealing with an overseas seller, using an overseas advertising platform and an overseas payment facilitator.

Why does it matter why I choose to be here answering questions?  But to answer you....I am semi retired, have mobility problems and plenty of time to be here.  I have had over 30 years of experience in various businesses including retail and service and have dealt with the GST since it started.

I have used paypal since before it was called paypal and acquired by ebay and been on ebay for long enough to have done over 15000 transactions with very few problems.

[padi*0409]

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@foxfrontier wrote:

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hehe I could ask the same of you, why do you spend you free time here "filling in" for a billion dollar multi-national company's support obligations?

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eBay does have a support system (see "help" at the top of any page) BUT the CS reps there often do not have the expertise to answer members questions correctly.

Thus members here freely answer other members questions from their vast knowledge of how eBay works.

"Don't shoot the messenger"

[foxfrontier]

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@lyndal1838 wrote:

And thereby lies the whole crux of the matter.....your business was not done in Australia.  You are dealing with an overseas seller, using an overseas advertising platform and an overseas payment facilitator.

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Yep and there are a whole raft of new legal requirements that started on July 1st to deal with this.. everyone has to play by the same rules (whether you agree with them or not).. it's just where do you draw the line. Is the "voucher" provided by "eBay Australia"? I'm sure they have an Australian entity with an ABN.. if we could just see the fine print.. or a valid "tax invoice"..

https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/

[imastawka]

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@foxfrontier wrote:

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@lyndal1838 wrote:

And thereby lies the whole crux of the matter.....your business was not done in Australia.  You are dealing with an overseas seller, using an overseas advertising platform and an overseas payment facilitator.

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Yep and there are a whole raft of new legal requirements that started on July 1st to deal with this.. everyone has to play by the same rules (whether you agree with them or not).. it's just where do you draw the line. Is the "voucher" provided by "eBay Australia"? I'm sure they have an Australian entity with an ABN.. if we could just see the fine print.. or a valid "tax invoice"..

https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/

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https://abr.business.gov.au/ABN/View/22086288888

[*tippy*toes*]

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@foxfrontier wrote:

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@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

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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. 😜

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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I am here because I want to be. I am the CEO of a large multi national company. I earn an insane amount of money. Coming here gives me an outlet where I don't have to think too hard. I like to help people.

The long term members here know far more about how eBay works than the people in the call centres. If you didn't treat us like complete morons, then we might be willing to help a bit more.

You want the fine print, find it yourself. It's there. Why should one of us do all the hard work for you?