ebay charge gst on shipping cost

[neddans]

Why does ebay charge GST on shipping cost when Aust. Tax office said NO?

[brerrabbit585 · Accepted solution]

You need to read some of the other threads on this subject, and also the ATO's website where they definitely say YES to GST on the shipping cost.

[enigmabear · Accepted solution]

Could not have said it better

Topic done to death and the answer is the same

GST is Goods AND Services and is charged on the goods and the service 

Postage is a a service

It sounds like this tax office person was either having you on or having a jolly bad day

One would hope, otherwise I worry for the people who are given the wrong information on important tax related issues 

[brerrabbit585 · Accepted solution]

OP probably asked the wrong question and therefore got the wrong answer. Either that or this thread is another wind-up.

[dontmissthese]

Hands up anyone who charges the actual postage cost to buyers ?

[collect247 · Accepted solution]

I charge free postage so the sales determine what my loss is towards postage in the end.

[*tippy*toes* · Accepted solution]

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@dontmissthese wrote:

Hands up anyone who charges the actual postage cost to buyers ?

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I generally do as I add the cost of the fees into the item price. Buyers can be pretty unforgiving when they pay $9 or $10 postage and see the label as being $8.30. Some will have a reduced postage cost, say $6, then add the rest of the cost into their item price. 

[digital*ghost · Accepted solution]

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@dontmissthese wrote:

Hands up anyone who charges the actual postage cost to buyers ?

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Every seller charges the actual shipping cost to buyers, unless they are selling at a loss. 

There are, of course, some sellers who include additional costs in with the P&H, and some who don't. It makes no difference in the grand scheme of things.