Further Information: "Netflix tax" effective 1 July 2017

[go-tazz]

Just got an updated Email,(which clearly states on the updated rate card form that from 1 July the fees will go

up to 10.9% Final value fees (charged on item sale price + postage paid by buyer).

The Email is titled:

Further Information: "Netflix tax" effective 1 July 2017

[twyngwyn]

yes, sellers will pay GST unless they have an ABN:

You might have seen our recent email about changes to Australian tax legislation (the "Netflix" tax) which will impact fees on eBay. We want to provide you with some further details about this change and how it may affect you.

This legislative change imposes Goods and Services Tax (GST) on digitally delivered services offered to Australian based consumers by non-resident suppliers, starting 1 July 2017. This includes the eBay service.

If you’re a private seller:

GST of 10% will be applied to your fees and will be shown on your monthly invoice. We recommend you familiarise yourself with our updated rate card ahead of this change.

If you’re a business seller:

If you have a valid Australian Business Number (ABN) and are registered for GST, you can get an exemption by registering your ABN with eBay here (make sure you enter your ABN with no spaces). No GST will be applied to your fees.

To help you understand this change, see our updated rate card and our frequently asked questions.

Regards,
The eBay Team

[sewingfun13]

How will this affect me as a private seller in relation to prices - do I have to add 10% inclusive on every item I sell?

Cheers

[lyndal1838]

It has nothing to do with the price of your items.   The ebay GST is on the ebay fees only, nothing to do with the price of your items.

[5kazam]

Sorry, was going to post something but changed my mind.

[ircinic-7]

Kazam

The non resident supplier is EBAY

They are supplying the platform to sell on.

The GST is for their supply of that platform &  the FEES they charge.

The GST will ONLY BE ON THE FEES charged by eBay.

[5kazam]

Obviously you read my post before I deleted it.

It would have been much simpler and clearer to everyone if eBay had just stated that - eBay is the non-resident supplier.  

I, for one, have absolutely no problem in paying GST on my fees.

It is so well overdue that eBay contributed to this country.  Okay we sellers are the ones paying for it, but per seller that is most likely a nominal amount.  And I'm quite sure the larger sellers will do some price adjustments so they are not actually affected by it.

I would really love to see the tax laws amended further so that eBay are required to pay tax on their earnings on the Australian eBay site. Earned in Australia from ebay.com.au, instead of squirrelled away in Switzerland.

But at least GST is a good start. 

[toysandthings12]

Nothing to do with the price u sell your items for...yet.

I can see a possible result of their delayed investigation into how to collect gst on sites like ebay.

In general, they might apply gst on top of the sale price at time of sale, doubtful as ebay seems to hate sellers,

tho they may do the exemption if u have a registered abn.

so more likely they will apply it as included in ur sale price and may do the collecting for u and everyone.

Reducing the money paid to u. unless u have a registered abn. fvf of 20.9%.

So we register our abn with ebay and carry on, safe in the knowlegde that our sales get reported via abn to the ato,

like they keep claiming they do anyway.

[ircinic-7]

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@toysandthings12 wrote:

Nothing to do with the price u sell your items for...yet.

I can see a possible result of their delayed investigation into how to collect gst on sites like ebay.

In general, they might apply gst on top of the sale price at time of sale, doubtful as ebay seems to hate sellers,

tho they may do the exemption if u have a registered abn.

so more likely they will apply it as included in ur sale price and may do the collecting for u and everyone.

Reducing the money paid to u. unless u have a registered abn. fvf of 20.9%.

So we register our abn with ebay and carry on, safe in the knowlegde that our sales get reported via abn to the ato,

like they keep claiming they do anyway.

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Do yourself a favour & read, try to understand.

Rather than an irrelevant rant.

[lyndal1838]

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@toysandthings12 wrote:

Nothing to do with the price u sell your items for...yet.

The sale price of items on ebay are already GST inclusive which means that sellers who are registered for GST are already submitting GST to the ATO.  There is no way ebay can interfer with that.

I can see a possible result of their delayed investigation into how to collect gst on sites like ebay.

In general, they might apply gst on top of the sale price at time of sale, doubtful as ebay seems to hate sellers,

tho they may do the exemption if u have a registered abn.

They might do a lot of things but in view of the fact that it is illegal to add extra GST on top of prices that are GST inclusive I doubt that they will.

so more likely they will apply it as included in ur sale price and may do the collecting for u and everyone.

Again, it is illegal for ebay to collect GST from sellers for the sale of their items...they cannot collect it on anyone's behalf.

Reducing the money paid to u. unless u have a registered abn. fvf of 20.9%.

How do you work out that final value fees will be 20.9%.   The GST will be 10% of the FVFs so an extra 10% of the 9.9% (or whatever FVF you are paying).  It is not an extra 10% of the sale price.

So we register our abn with ebay and carry on, safe in the knowlegde that our sales get reported via abn to the ato,

like they keep claiming they do anyway.

Are you serious??  If you are not already reporting all your sales on your ABN you are really asking for trouble.   Even without an ABN you should be declaring your sales on your tax return anyway.  And ebay doesn't just claim to be reporting to the ATO....they really do it.

Before making these wild claims as to what ebay may or may not do I suggest you read the legislation and try and understand that all of these rules are being followed by businesses all over the country without all these wild accusations of wrongdoing.

Whatever you may think of ebay one thing is certain....they are not stupid and will not go around breaking Australian law just for the sake of it.

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