Double the GST on some items?

[go-tazz]

Now that the government has waited before introducing the tax they now also get the FVF's for the postage

component.

If you sell an item for $10 with $10 postage they are actually getting 20% gst,(10% on each).

You are not selling postage but it's still regared as a FVF,

So you have to start charging more for the item and more for the postage if you want the same "profit" for

whatever you sell.

It's difficult enough to sell items on this site as buyers aren't willing to pay the same prices that they paid in

the past,(if prices go up it will become even more difficult).

Or absorb the fees and make less "profit" which in turn could mean buying less on this site,

[imastawka]

Geez, Tazz,  you're doing a great job of confusing yourself.

Read back.   My post should clarify

[lyndal1838]

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@eezipeezi888 wrote:

If sellers are starting to worry about the GST on items then everyone should look at their every day life that involves the GST.

There are many many things that you pay for which you get charged 20% GST instead of 10% GST.

One example is when you put your car in to get serviced/repaired and the repairer gives you the bill which will have the labour cost and the parts cost total then GST added to give the final cost.

But what people don't see that's hidden in the cost is that you are being charged twice for the parts lol.

When the parts are purchased they incur the GST and then the repairer charges the GST again in the bill so you're paying 20% on the parts.

---

No, you are not being charged twice for the GST on the parts.   The repairer would have claimed an input tax credit when he did his BAS.

The GST gets claimed as in input tax credit all the way up the line till it gets to the end consumer.....it is only paid once on all goods.

[go-tazz]

---

@imastawka wrote:

Can't find it, but trust me  -  I'm a stalker   lol 

Tazz, by your example, if you sell something for $10,  ebay's fvf is 99c. (9.9%)

The gst component is only 10% of that 99c, so it will only add up to $1.09

Just pretend the fvf has gone up to 10.9%  

---

All my examples are if GST is payable on the postage component of the FVF's,(so it's exatly the same as yours

but for the GST only).

As stated in post number 4

So in my example eBay get 9.9% FVF's on the sale price and the postage cost,(99 cents and 99 cents).

Total $1.98 and the tax will take 10% = 19.8 cents,(9.9 cents for the item and 9.9 for the postage).

[digital*ghost]

My impression of the statement that postage will be excluded from GST was only when you purchase postage services via eBay, so that buying a label won't have any added, but the FVF charged on the postage component will.

Tazz, the simplest way to work it out is to consider the fees charged on sale price and postage amount as a single figure.

Eg item cost $10 with postage cost $10. Total sale price $20. FVF on $20 is $1.98.

GST on $1.98 fees is 20c so total cost on invoice would be $2.18.

[go-tazz]

---

@lyndal1838 wrote:

No Tazz...the GST is not on the item cost but on the fees that ebay charge you to sell the item.

And you will not be charged GST in the postage you have paid as it is already included in the postage paid to Australia Post.

---

My opening post is probably badly worded but the opening statement did say

Now that the government has waited before introducing the tax they now also get the FVF's for the postage

component.

Meaning that before it would've only been GST on the item FVF's and now it's also on the FVF's postage

component.

[imastawka]

I'll type slowly so you can understand.....

T h e r e' s    n o    g s t    o n    t h e     p o s t a g e    c o m p o n e n t

$10 sale incurs 99c fvf + 9c gst  =  $1.09 (rounded up)   

NOT $1.98

[go-tazz]

There seems to be confusion by others as nowhere have I stated total fees payable,(yet that's the mistake

I'm making?).

I'm only stating the GST component of the FVF's if postage is included in the FVF's GST,(which is 9.9 cents

for the postage FVF's on a $10 item),

[imastawka]

My bad.....forgot the fvf on postage   (not GST)

[fred_foofighter]

Well if your worried about GST on the GST that is included in the  postage (A Tax on a Tax) because it already has had GST incorporated into the price, then you should also be worried about the GST on the GST that is included in the  price of the item that the seller is selling.

As Lyndal said "The GST gets claimed as in input tax credit all the way up the line till it gets to the end consumer.....it is only paid once on all goods."

[digital*ghost]

---

@go-tazz wrote:

There seems to be confusion by others as nowhere have I stated total fees payable,(yet that's the mistake

I'm making?).

I'm only stating the GST component of the FVF's if postage is included in the FVF's GST,(which is 9.9 cents

for the postage FVF's on a $10 item),

---

Your opening post refers to total fees payable, because as I understood it you were explaining that GST will be charged on both components of eBay's FVF, which is charged in two parts, FVF on sale price, FVF on postage amount, which is where I assumed the 20% GST figure came from (adding the 10% of one to the 10% of the other, but that's actually erroneous - very few items on the site would have P&H equal to their purchase price, if I sell a $50 item with $2 postage, the GST component on the subsequent fees would be no more than 50c on the sale price, and 2c on the postage, hence why it is easier to look at the sale total, or rather the fee total, then calculate GST, fewer sums, less room for error). 

I'm not saying this as an attempt to explain things to you specifically, I'm just trying to find the simplest way to summarise what is actually going to happen (in so far as I understand it).

10% GST will be added to all of eBay's service fees. 

eBay's Service fees are:

Store subscription fees

Insertion fees

Final value fees (combined)

Listing upgrade fees

Selling Manager Pro subscription fees (where applicable)