GST and Ebay Fees not clear - Confused please help clarify

[garthj85]

Hello,

I am confused by the Fees as the Docs are certainly not clear on this matter.

Are they saying there are Ebay fees of 9%  PLUS GST of 10%   ?

So for clarity, if I have sold an item for $325 with Local pickup, and Insertion was Free, what are the Total fees I will be paying ?

thanks

[collect247]

I think we all got lost in translation somewhere here and getting mixed up with the NETFLIX TAX?

Which is GST on sellers fees?

[imastawka]

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@lyndal1838 wrote:

So what you are saying is that sellers who offer Free postage are NOT paying GST on their postage but sellers who charge the postage separately are paying GST?

I don't think so.

The fees are on the final value fees, NOT to actual postage.   It was stated very clearly that ebay was not going to add the GST to actual postage, even ebay postage.

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Sellers who offer free postage are paying the GST on their sales, cos there's no

such thing as free postage.

My postage is $1.50  If they are charging me 1.5c or thereabouts, then I haven't noticed.

I don't do parcels of any description

And at this stage, the care factor has become nil

Have I mentioned this? 

[jfmgray]

eBay charges GST on the postage fee.  eBay has clarified that it will not chage GST on eBay postage labels as Australia Post has included GST in the cost. 

[chameleon54]

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@jfmgray wrote:

eBay charges GST on the postage fee.  eBay has clarified that it will not chage GST on eBay postage labels as Australia Post has included GST in the cost. 

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A Theoretical example of an item that sells on ebay for $100, with $10.00 postage ( all figures rounded for simplicity )

Ebay charge approx. 10% commision on the postage fee. The GST relates to this commisssion fee on postage, not the actual postage cost itself. If your postage cost is $10.00, ebay will charge $1.00 in commission fees.  The GST on this $1.00 ebay commision fee will then be 10 cents ( rounded ). Your total actual postage costs will go from $11.00 to $11.10 of which ebay will take $1.00 commision and GST will take 10 cents.

The same applies to the item cost. If the item you sell costs $100 excuding postage, ebay will take approx $10 in commission. The GST applies to this $10.00  ebay commission, so the GST payable will be $1.00   ( all figures rounded for simplicity )

The total GST paid on this $110.00 sale ( including the post cost ) will be approximately $1.10

Its actually a bit more complex than this, but that is the simplified explanation. ie. ebay commissions are deducted from, not added to the selling price, gst is 1/11th when worked back, commissions vary etc.

[brerrabbit585]

There was a link at one stage that clearly showed the fvf's for non-stores as 10.95%, both on the item price and any postage price. Ebay is charging fvf's on the TOTAL price a buyer pays, regardless of how much of the total relates to the item price and how much to postage. It's a fee for a service and if they didn't charge a fvf on the postage component they'd just raise their fees on the item price, so there's no point in us banging our heads against a brick wall because of it.

[imastawka]

It's the updated rate card

http://sellercentre.ebay.com.au/sites/default/files/complete_fee_table_AU_0717.pdf

[brerrabbit585]

Yep, I was just about to post that. It was originally posted by YOU on 15 June. Above where it says 10.9%, the heading says final value fees are charged on item sale price + postage charge paid by buyer.

Oops, just realised I typed 10.95% in the previous post.

I hope the little man hammering inside your head has settled down.

[lyndal1838]

Yep, that shows that you pay 10.9% including GST on the total amount paid by the buyer....whether it is free postage or separate postage.

[ozstockman]

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@garthj85 wrote:

Hello,

I am confused by the Fees as the Docs are certainly not clear on this matter.

Are they saying there are Ebay fees of 9%  PLUS GST of 10%   ?

So for clarity, if I have sold an item for $325 with Local pickup, and Insertion was Free, what are the Total fees I will be paying ?

thanks

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(1)Assuming that you are an individual(not a registered business) or you are business that is not registered to clllect GST with ATO and you pay 9% to ebay in final value fees you will pay ebay in fees $$29.25 in final value fees as you did before this July  plus $2.92 as GST on that fee.  If you pay listing fee of $0.30 you will also pay $.0.03 GST on top of it. 

(2)Another scenario is you are registered business, you are registered  for GST with ATO and you thave told ebay about it. Then you won't  be charged GST component on eBay fees at all, Just $29.25 in final value fees and $0.3 if your listing is not free.

(3)And the last scenario is the second one but you have not told eBay that you are registered with ATO to collect GST. In this case you will be charged as in the scenatio # 1 (individual or business without GST registration)

Also do not forget that if you are paying for a store to eBay they should add GST on top your store fee in scenraios #1 and #3. Basically in these scenarios your monthly bill that you used to pay to ebay before this July will be 10% more for GST that eBay must  to collect on their fess. 

I am not sure why some members here is talking about GST in postage cost. It is absolutelly irrelevant as it is charged by freight carriers for any postage within Australia. Poistage to overseas do not have GST component in it.

Anyway this GST component in postage cost has nothing to do with eBay charging their fees on postage too and addiung GST on top in the scenarion #1 and # 3. If you are registered for GST with ATO you can claim GST component in postage cost against GST collected in your sales. If you are paying GST on eBay fees simply because you forgot to tell ebay that you are registered for GST(scenarion # 3) then I guess you are still allowed to claim it to ATO againts  GST collected in your sales. 

In all other cases that will be your extra espense which you cannot claim against GST collected because yoiu are not allowed to collect GST in your sales. However it is still an expense yand you can claim it as an expense in your tax return.

[lyndal1838]

Good clear explanation....I hope a lot of members read it and understand it.