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?

[gutterpunkz05]

Your methodology is over complicated and confusing, which probably explains  ATO response.  Maybe you need to see an accountant.    It is infact very simple.  add GST to the item Price.  10.38   =  $1.04    You pay  $ 1.04  GST.  Now  Ebay pay  5%  of the item price  = 52c  which leaves a balance of $9.86  which you pay.;  So you pay  $9.86 to the seller.  you pay $1.04  to ATO via ebay

and ebay pay 52c direct to the seller on your behalf.

[foxfrontier]

It doesn't matter what the seller gets, it is irrelevant from my perspective as the buyer, what I am issued with is a non-valid statement in multiple places that states that I have paid:

1) 9.86 (paid to seller)

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

This is incorrect under the Australian system to my knowledge and to the ATO representative that I spoke with.

It should be:

$10.90 total (same as above) which includes 10% GST = 0.99 GST 

All eBay needs to do is issue a valid "tax invoice" with these figures and all is ok. And of course they would pay the government $0.99.

The more I think about it, I believe the are paying the govt $0.99 and profiiting the $0.05 even if they don't know it. All they owe the government is 10% of the sale = $0.99 for this sale.

[k1ooo-slr-sales]

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@foxfrontier wrote:

It doesn't matter what the seller gets, it is irrelevant from my perspective . . . . . 

All they owe the government is 10% of the sale = $0.99 for this sale.

---

it is clear that you consider it irrevant, but . . . . . all they owe the government is 10% of the sale = $0.99 for this sale $1.04 for this sale

The sale was for $10.38

[foxfrontier]

If you are not in Australia and dealing with this as a business and know the Australian system and the Australian rules, then please save your comments.. each country has their own tax code that sets how discounts are handled and it is different all over the world. I do understand eBay is funding the rebate/discount/whatever you want to call it and I can see this being absolutely correct in many other places in the world.. just not Australia.

I totally agree that it would be crazy to think eBay have got this calculation wrong, for months now!

[kopenhagen5]

The sale is 10.38.

Irrespective of whom chips in to pay the bill.

Similarly if 3 buddies and I are at the bar, I order 4 beers and they all give me $2 each and I pay the bill of $20.

I get the receipt, I have paid tax on $20 but only 14 came out of my own pocket.

[digital*ghost]

It does matter what the seller gets, because that is the sale price.

ebay vouchers aren't traditional discounts, they just pay a portion of the actual price for you. If you were buying say a pizza in Oz and your friend chipped in $5, that doesn't reduce the GST paid or collected. Same applies in this situation.

[foxfrontier]

it is clear that you consider it irrevant, but . . . . . all they owe the government is 10% of the sale = $0.99 for this sale $1.04 for this sale

The sale was for $10.38

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No, eBay sold the product to me for "$10.90 GST inclusive".

I'll let you know what the ATO tell me. 😉

[kopenhagen5]

eBay doesn't sell anything.

Individual people sell things advertising on eBay.

eBay is only an advertising medium.

[gutterpunkz05]

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@foxfrontier wrote:

It doesn't matter what the seller gets, it is irrelevant from my perspective as the buyer, what I am issued with is a non-valid statement in multiple places that states that I have paid:

1) 9.86 (paid to seller)

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

This is incorrect under the Australian system to my knowledge and to the ATO representative that I spoke with.

It should be:

$10.90 total (same as above) which includes 10% GST = 0.99 GST 

All eBay needs to do is issue a valid "tax invoice" with these figures and all is ok. And of course they would pay the government $0.99.

The more I think about it, I believe the are paying the govt $0.99 and profiiting the $0.05 even if they don't know it. All they owe the government is 10% of the sale = $0.99 for this sale.

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You seem to be looking for something that is not there,  read the T&C applicable.  The GST component is fully your responsibity.

If you used you 5% discount to buy an item valued at  $10.38 in  OZ  ebay would pay 52c on your behalf.

but because you chose to buy an item from OS valued at  $10.38  you expect  ebay to pay 57c.  That is why ebay excludes taxes

in the T&Cs

[enigmabear]

Was just about to say the exact same thing