GST for private individual not in business

[goldmelb]

I sold something for the first time in over a year and discovered GST is being withheld from my payment.  I am a private individual, not operating any business activty.  I do not have an ABN and am not entitled to have one.  I am not registered, or required to be registered for GST.  I am legally not allowed to charge GST on any of my sales nor do I have to remit any GST to the ATO.

I logged into the chat function and spent an hour and a half going through the issue with someone, who actually hung up on me, when a second consultant came on the line with the same outcome.  There is a link to put in a GST exemption but it's aimed at businesses who may be GST exempt for any number of reasons - nothing for individuals not in business.  The chat consultant was clearly reading from a script.  All I wanted was for the GST to be removed from the sale and they said they "could not change the policy." 

I logged a phone call, but more than two hours later still nothing (45 minute wait time was mentioned.)

Before anyone jumps on me, I'm a tax professional and understand how GST works.  I also know full well WHY the GST is being added, to prevent dodgy businesses from avoiding their legal tax obligations - I've been involved in numerous tax audits (as a tax professional) of businesses where eBay sales are not reported, so have first hand experience.  As a private seller I am not bound by the GST rules but there is nowhere for me to advise eBay.  They are clearly applying a policy across the board to all sellers, regardless of their ABN/GST registration status.

There is no way to have the GST refunded to a private seller under normal ATO reporting processes.  The GST law is structured so that private sellers are usually excluded from the legislation.

Terribly frustrating experience, when it should be much more transparent.

[imastawka]

??

Are you talking about GST on your fees for selling the item?

Goods and Services Tax (GST)

• If your registered address is in Australia, Australian GST of 10% is payable on your eBay fees. Unless you registered as a business account and provided your tax registration details, we'll add GST to your eBay fees.
• If you're a business customer and you provided your tax registration number (ABN) to eBay during registration, we won't add GST to your eBay fees.
• If you live outside Australia, depending on the tax legislation of your country or region of residency, local Goods and Services Tax (GST), Value Added Tax (VAT) or similar consumption tax might apply, instead of Australian GST.

Selling fees without an eBay Store | eBay

Being on Managed Payments, fees are taken before they are deposited into your bank account.

[sugar249]

As a tax professional, you would also know that if they are doing the wrong thing you can report them to the ATO or ACCC,  no point reporting them here we are just other users.

[gutterpunkz05]

As a tax professional,  you should fully understand the situation,  You are using the ebay platform to sell

and they charge fees for using there service,  you are required to pay tax on  goods and SERVICES  and as you are not entitled to an exemption  then the  GST on ebays fees applys.

[davewil1964]

That was my thought also, stawks.

I've never had GST withheld from my sales proceeds, but my fees definitely include GST on those fees.

[santon]

potentially the gst you are referring to, is the gst they themselves have to pay for the service they provide, not your own. Although you are the seller, you are buying a service off them, which they will charge you for, including gst as they must pay since they are making a profit.

[kh-syedse]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread, if you wish to continue to discuss this topic.

Thank you for understanding.