Ebay and the ATO

[jellybirddesigns]

Good morning all,

it looks like this year will be the first time that Ebay will declare my earnings to the ATO as I have gone over their threshold.

For those that have dealt with the ATO on this issue:

1) Does the figure that Ebay supplies to the ATO include or exclude postage costs and fees : ie is a gross or nett figure?

2) Does Ebay also advise you of the figure they have supplied to the ATO?

[digital*ghost]

Honestly, I don't know if the figure includes postage, but they don't advise the figure they provided (unless you request it I think) - I don't actually think about it and just consider whatever figure they provide, it's a "ballpark" figure, because I'm the one that has all the records and receipts that backs up the data on my tax return. 

I do know that the figure doesn't account for cancellations / returns, or refunds, so it's never going to be accurate.

[clarry100]

We asked our tax accountant about this exact point last year. He said it will be a gross figure. ie the total of all income from sales regardless of if/not postage is included (free) or separate (its still income as you are still paid).

It does not have to exactly match (to the dollar/cent) what you declare as income its more a trigger for the ATO to expect to find a tax return from you as you are earning an income from that source. Your accountant will deduct all your allowable expenses (from the records you keep) in order to arrive at a taxable income. Of course if the amount ebay report and what is declared by you in your tax return are streets apart then they might ask for an explanation.

If they don't see a return then you might expect a please explain letter.

We have never seen the exact figure ebay report. Nor do we care really as we always submit a tax return each year based on the sales/expense records we keep.

[aussie-picker]

I wouldn't sweat it at all , just do it . 

Register for a ABN as a sole trader . Once you have done your tax for this coming year  , the ATO will just send you a Quarterly Statement based on your last years tax . So I just pay their nominated amount each quarter . 

They have made it a lot easier than it used to be . 

At the end of each financial year , If you made a loss they refund you the difference of what you have already paid based on their estimates. 

But if you are making a profit , it doesn't hurt as you have already paid in advance so no tax bill shock.

[lyndal1838]

Why would you give the ATO the use of your money if you don't have to?

Just put money aside in case you owe anything to the ATO.

[amber-eyed-girl]

With PAYG you have to give the ATO the use of your money all year based on their estimate from last year's returns.

Sometimes they appear to classify me as the idle rich, some years just idle. Bit of a mystery really.

[erg-auto-electrical-wholesalers]

Any amount that goes into your hands/account is income regardless of where it comes from.

[davidc4430]

i'd also like to know do ebay send us a copy of the document they give to the tax guys.

[lyndal1838]

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@amber-eyed-girl wrote:

With PAYG you have to give the ATO the use of your money all year based on their estimate from last year's returns.

Sometimes they appear to classify me as the idle rich, some years just idle. Bit of a mystery really.

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Yes, it is a rip off....I pay 24% PAYG tax on $400 all because I have some dividend income which is fully franked and stays pretty static every year.  Still, it makes for a nice little refund but no interest of course.  If we owed the ATO that amount of money we would be charged interest.

[asporty]

ebay gives us zilch. And they will continue to give us zilch till ATO gets around to taxing them for the gizillions they are making from Aussie operations.

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@davidc4430 wrote:

i'd also like to know do ebay send us a copy of the document they give to the tax guys.

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