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?


@*tippy*toes* wrote:

 


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.

 


Would it be OK if I pm you Tippy for a fantastic investment opportunity that my good friend in Nigeria has ?

 

Spoiler
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"Start me up I'll never stop......"
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Re: Import GST charge calculation based on pre-discount price, this doesn't seem right?


@*tippy*toes* wrote:
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? 


 

Wow, not only does eBay have random people doing their support for them, they have esteemed CEO's dropping in too.. funny how someone in your grand position is not even slighly concerned about the tax law.. 😜

 

I'll give you a hint, I've looked and by this stage I am pretty sure the fine print doesn't exist publically, but I am not an eBay expert as you all are, so I am asking that "instead of listing off your internet credentials", that you just screencap or link to the fine print that explains in detail how the voucher is handled under the new GST imports system.. which entity is funding the discount and why aren't they issuing the required parchments.. seems simple, it really isn't though.. and probably why eBay haven't published it. 😉

 

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

you know the 5% coupon could be considered a 'service' provided to you by eBay. If seen as a service it would be subject to GST . . . . . wouldn't it . . . . . . making this fine print post the last one required on the thread . . . . . . case closed!

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


@foxfrontier wrote:
I'll give you a hint, I've looked and by this stage I am pretty sure the fine print doesn't exist publically.. 

I hope you don't think I'm trolling, I'm not, here I'll put up.. show me where in these relevant documents, that eBay mentions anything about how the "discounts/vouchers/coupons/whatever you call it" are applied persuant to the GST?

 

For the experts, the only question is, is there some other source of material (put out by eBay) on this matter that I am unaware of?

 

The eBay user agreement (from the footer)

https://www.ebay.com.au/help/policies/member-behaviour-policies/user-agreement?id=4259#17.%20GST%20o...

 

The eBay Tax Policy!! (linked from the user agreement above)

https://www.ebay.com.au/help/policies/selling-policies/tax-policy?id=4348

 

I followed the user ageeement, I have futher questions, I have contacted the ATO as eBay suggests I do.

 

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

Y'know all this angst could've been avoided if you just gone and collected it yourself - GST free

 

https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/International-transact...

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


@k1ooo-slr-sales wrote:

you know the 5% coupon could be considered a 'service' provided to you by eBay. If seen as a service it would be subject to GST . . . . . wouldn't it . . . . . . making this fine print post the last one required on the thread . . . . . . case closed!


Yes absolutely, I suggested this in a post far above, I said they can proably claim an input tax credit for this like a refund.

 

But.. we don't know if this is even how the scheme is structured.. we don't know who legally is providing the discount..

 

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


@imastawka wrote:

Y'know all this angst could've been avoided if you just gone and collected it yourself - GST free

 

https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/International-transact...


Thanks but we are talking about a specific scheme of arrangement eBay are using to provide a discount, the overall code is not the relevant question, grab a coffee and re-read from the start. 😉

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

I've been reading all along.

 

Ad nauseam comes to mind................................

 

But I'm sticking around to see the egg on your face from the ATO.

 

Bet you don't come back when you get their answer.

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


@imastawka wrote:

I've been reading all along.

 

Ad nauseam comes to mind................................

 

But I'm sticking around to see the egg on your face from the ATO.

 

Bet you don't come back when you get their answer.


lol as above, I don't have a care either way it turns out. you can bet 100% I'll be back any way to let you know anything I hear, PM me if I don't.. I've already said a dozen times eBay is probably making the right calculation and my first posts are likely incorrect.. they were based on regular GST accounting. Edit: or accounting if you were dealing with the international seller directly.

 

That being said I'm pretty sure eBay hasn't provided the necessary documentation on this scheme. (leading to my concern) Again I could care less if they have a private tax ruling with the ATO - I assume they do!! When they show us the details of that, or confirm it, I'll be a happy camper. 🙂

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

Gee, I wish I could get paid to comment on here, but then again I might really pi### the rest of you right off, as I could flood the boards with thousands of comments.  Surely would have to be an easier way of turning a quid than my current endeavours.

 

Dear Mr/Mrs Fox,  just to make it completely clear.  I am a fully fledged Aussie, born and Bred.   I was registered for GST  and went through all the  community training seminars etc, that were conducted when  GST was first implemented.  I am also an importer

of goods and have been paying GST and import duties on high value imports, long before the current changes were even considered.  I also kept up todate with the Implementation of GST  low value imports, a process that was negotiated over a period of some four years.    It is obvious from your many comments, that you do not understand the process and the difference between Australian Goods with GST included  and  the New method of adding GST to imported goods through ebay.   It is also blatantly obvious that you do not understand the validity of ebays T&Cs  as issued  to cover each and every special offer to members.  The very same  T&Cs  that you must accept, either directly or tacitly ,so as to avail yourself of these offers.   I have the utmost confidence that ebays teams of lawyers, who draft the T&Cs, are well aware of their obligations and responsibilities in complying with Australian  Laws, be they Taxation or  otherwise.

I would recommend, that as the implementation of GST on low value imports, is not compatible with your remittance methods, that you do some basic research and learn to import those very same goods  GST Free.

 

 

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