EBay Commerce GST on Sales

[rebfitzp24]

Hi

Please tell me. I have an eBay commerce store in Australia.  I am registered to collect GST with the ATO.

Does eBay pay the GST they collect on my behalf to me or to the ATO?

if they pay it to the ATO, how do you code this in your own books since you aren’t receiving the GST to pay the ATO? Do you code it GST Free Sales… or BAS Excluded.

With the shipping costs that eBay deducts from my invoice.  It that figure deducted including GST or does eBay offset that against the GST they collect on my behalf and pay to the ATO.. ?  That’s if they pay it to the ATO.

Please only answer if you know what you’re talking about.  Thank you 

[gutterpunkz05]

What if I were to post that I’m a taxation expert employed by the ATO?

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I know nothing, it wasn't me.

[gutterpunkz05]

Just to add,  not a tax expert and don't work for the  ATO......................................

But I have twice been audited for  GST compliance.

[k1ooo-slr-sales]

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@rebfitzp24 wrote:

It’s not tax advice it’s what on the eBay sales invoices which I don’t have access to!  Anyone that knows what they are taking about can answer that from that m! 

you can’t so DO NOT Answer 

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I'm pretty sure that if the ATO contacted you about GST compliance, replies such as "but a guy on eBay Discussion Forums told me ....." would see you make the monthly honour board in their lunch room.

Have you filled out your TSFE form yet?  You should.

[countessalmirena]

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@gutterpunkz05 wrote:

What if I were to post that I’m a taxation expert employed by the ATO?

=======================================================

I know nothing, it wasn't me.

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💵%🙈😉

[chameleon54]

Disclaimer - I,m also not a registered accountant, but have 5 ABN's, four Tax file numbers for various business entities, and have been GST registration since it was introduced.

My understanding - If GST registered, you are required to factor in the GST component of the item into your sales price. ie. You add 10% to price of item and collect the GST.   or take a haircut for 10% of item price if you cant pass it on. It is worth noting if your profit margin is 50% of total price, a 10% haircut will dramatically reduce your profit margins. You will also incur additional record keeping and accountancy expenses.

You are then required to declare and forward any GST payable after allowing for offsets of GST on your expenses to the ATO on your BAS either quarterly or annually depending on your own registration details. ( assuming you do not have millions of dollars in sales )

There is currently a $75,000 threshold where small businesses do not have to register for GST. Unless the vast majority of your items are purchased by GST registered entities who require tax invoices, there is little benefit and lots of pain from being GST registered for less than $75,000 turnover.

While it is possible to work out how the GST system works at a basic level from ATO fact sheets etc, as others have said, it is highly recommended you  to talk to an accountant or registered tax agent.

[domino-710]

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@chameleon54 wrote:

Disclaimer - I,m also not a registered accountant, but have 5 ABN's, four Tax file numbers for various business entities, and have been GST registration since it was introduced.

My understanding - If GST registered, you are required to factor in the GST component of the item into your sales price. ie. You add 10% to price of item and collect the GST.   or take a haircut for 10% of item price if you cant pass it on. It is worth noting if your profit margin is 50% of total price, a 10% haircut will dramatically reduce your profit margins. You will also incur additional record keeping and accountancy expenses.

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Given - your understanding - having done this - I now pay fees on included GST. ??

Is 10% enough. ??

[chameleon54]

One other little technicality.

You add 10% to purchase price to cover GST, but to work out the GST component of item price, ( or sales ) you divide by eleven.

Example you sell an item for $90 and add $9 to cover the GST giving final price of $99. 

Divide $99 by eleven and you arrive at the GST component of the item price being $9

Any potential GST paid on selling fees to ebay or other expenses is offset against your GST payable on sales on your BAS. ..........ie. GST paid in expenses is a deduction on your BAS.

[domino-710]

Of course you do - a little technicality. lol

Not everyone submits a BAS.

[davewil1964]

Those registered for GST are required to - LOL

[domino-710]

Those not registered for GST - don't have to - but wear the unclaimable GST. LOL