on 03-05-2015 05:29 AM
hi there,
Lets say hypothetically i sell an item for $250 and bought it for $220
$20 gst hast already been paid by the supplier. plus i have to pay an additional $2.73 for a total of $22.73gst on the $250 sale
But i was wondering ( hoping.. wishing.. knowing its not true lol ) if i can deduct my ebay and papal fees from my sale price (21.25+5)
giving me a revised sale price of $223.75 which means instead of paying $2.73 in gst i only pay $0.35
Oh and lets say in another situation taking the ebay and paypal fees away from my sold price means i fall below what i paid for it ( made a loss ). lets say i bought for $220 and my revised sale price after fees deducted was $210. Would i have that sale as my gst contribution ruduced to zero or would i actually deduct $0.89 from my overal gst contribution from that sale and for my quarterly BAS?
Thanks so much in advance for any help with this. I've just recently exeeded the 75k turnover mark and thus have to start paying gst and i thought i was all over it but then i found myself wondering a few things about this little tax.
Solved! Go to Solution.
on 05-05-2015 03:29 PM
The buyer pays the GST on the item sale price. Just as you do when you buy something in a shop that has a GST component on it.
You (the seller) pays the GST on any goods or services related to running your business, but this would then be claimable (if indeed GST was paid by paypal/ebay) as an input tax credit when you lodge your quarterly BAS statements.
Since neither paypal nor ebay pay any GST to the ATO on their services at present then there is no GST component to claim in relation to their fees.
If you don't have enough total sales in a tax year (currently $75K) to register for GST then your tax agent will have the job of taking care of any business expenses you incur when you complete your usual annual tax returns. In this case the GST forms a part of the total cost of the item/service.
Either way you (the seller) are liable to pay the tax (either income or GST) you incur on your profits. Your tax accountant will figure it all out for you.
on 05-05-2015 03:55 PM
correct . the question was if ebay paid a gst on there fees
on 05-05-2015 05:10 PM
Same answer...
on 16-06-2017 02:52 PM
on 16-06-2017 03:07 PM
Ebay is not collecting GST on the sale of your items but on the fees that you pay for accessing ebay as a selling venue....the Final Value Fees on the item and the postage.
Everything you buy on ebay has GST included in the sale price but as the end buyer you cannot claim it back. The only people affected by the GST on the sale price is the seller and then only if they are GST registered. Ebay has nothing to do with this GST.
on 17-06-2017 02:02 AM
on 17-12-2021 02:25 PM
Good explanation.
on 17-12-2021 03:07 PM