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?

@countess

 

The only thing I could find wrong with your post is that it wasn't in the smallest font size.

 

foxfrontier wanted the 'fine print' Smiley Indifferent

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

It seemed fine to  me  smiley looking.gif

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

k1ooo-slr-sales, imastawker, I could see problems in the post... To my horror, there's a typo of "payed" instead of "paid". I have told off my fingers for daring to type this. (That's the most egregious error; I won't point out any others.)

 

Teeny-tiny fine print would be cruel... crueller than the time I took on the scary growly persona of Cruella de Evilla Villa in a stirring backyard game with my adorable nieces who played hapless spotted puppies.

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

Dont make it so easy for them, sometimes people have to put in a bit of effort themselves.  If/When they are audited  they will learn a lot more about GST.  There is a lot of little secrets that ATO  dont make general knowledge, but I am not offering assistance on those fronts.  Nor do I intend to offer the OP any assistance  when it comes to legal interpretations.

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