ATO Request for Data

[clarry100]

This is the first time we have received one of these since we have been trading on eBay.

Anyone else?

[lane-ends]

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@vamvas123 wrote:

Hi

I'm a bit lost. I too received this email and am not sure how to proceed.
I sell things on ebay as a hobby. I don't have a business or a store. What should I be doing? How can I ensure I am doing the right thing?
Thanks in advance

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If you are selling above that limit, then you must be selling for profit, and hence it is income. Even if you make no profit you are expected to demonstrate that.

If it is your only income it wont make any difference and they wont audit you as income (profit) theshold is around $18,000, so sales figure would need top be much higher than that.

[thecatspjs]

Lanes if you sell over $10K it does not automatically mean you are a business that is selling for profit.

People buy and sell personal items such as cars and other items over $10K frequently. 

[chickenlumps]

I got one today for the first time ever.  I did read in posts from previous years that if you only got the email in your personal inbox and not in your eBay messages inbox, then it wasn't a genuine eBay email.  Mine only came to my personal inbox, so is it real or not

[lane-ends]

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@thecatspjs wrote:

Lanes if you sell over $10K it does not automatically mean you are a business that is selling for profit.

People buy and sell personal items such as cars and other items over $10K frequently. 

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Poster stated they were selling as a hobby, not disposing of personal items

This raises another issue if you are selling personal items (eg the family car or other household items), then you need to keep records to show this as your stated business income will differ from Ebays reported ones.

ATO have no idea what, or why, you are selling things, so you need records to show. They will have their own allowances as to what to accept they will accept personal items.

[lane-ends]

Dont forget that list included number of sales as well as value so that will factor in any decision to audit or not.

They have thousands of sellers to compare to so they know what is normal for a business and what is normal for a casual seller off loading personal effects.

ISPs will catch sellers using multiple id to sell on.

[lyndal1838]

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@thecatspjs wrote:

Agree with the sentiments Joe.

But I would not think all businesses have to pay - some have overpaid and get a refund

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I agree with Joe too.....if you have to pay the ATO put it off as long as possible.

We had nothing to pay but ran at a loss for the year....all 31 cents of it.

[lyndal1838]

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@chickenlumps wrote:

I got one today for the first time ever.  I did read in posts from previous years that if you only got the email in your personal inbox and not in your eBay messages inbox, then it wasn't a genuine eBay email.  Mine only came to my personal inbox, so is it real or not

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It really does not matter if it is real or not.   There was plenty of discussion last year as to whether the notice was from ebay or not and after many members sending it to spoof@ebay we were none the wiser....some got the reply that it was real, some were told it was fake.

The point is....the ATO does ask for the information about turnover and no information is asked for in the email so just read it and delete if you are suspicious of it.

[joethenuts]

to vamvas its simple [if you buy to sell on ebay or anywere else ,you must include your sales from here on your tax income any profit you make for the taxable year must be included in your return .its earnings,,,,,

now the $10.000 limit which has come down from $20.000 is the turnover from anyperson that ebay sends to the ato. as asked by the ato. now if yor turnover is less than $10.000 , and if you buy and sell its still taxable income ,your profit only. but ebay does not send that to the ato . even if you turnover over $10.000 and prove you are only selling your private seconhand goods ala car furniture clothing and so thats fine. after all that the ato can change the amount with ebay or anywere else to $1.000,   crown casino is also the same it used to be $10.000 ,,if you colected more than that amount  you must sign and show your license ,which then goes to the ato.

but thats another story

[designers*n*more]

I had a friend who lives down the road come racing up in such a panic, she sold over $14,000 and received the ATO email. She's very worried.

[clarry100]

The ATO rule is that any income from any source has to be declared. Even if you earn $100 interest on your bank account. If any tax is payable on that income is the job of your tax accountant to work out. If what you sold was personal possession then that will be justified as part of the tax return. If you also have a mainstream job then the income adds onto that for tax purposes. So if EBay report you to the ato and you have not declared that income then you should be worried. They will send you a please explain letter. At the end of the day if it is found you have avoided paying tax you will no doubt have to pay what is owing plus any penalties they may impose.