GST

[brianhe]

Why do I have to pay EBay GST on Postage Costs associated with an item, when I don’t use them as a postage service.

I post items from a POST OFFICE and then pay more GST on that same postage cost. 

[brianhe]

I certainly agree with most of your comment. But why should sellers have to realistically pay 11.2% GST.  Surely this would be a fair bit overall for volume sellers.  I am not referring to myself as I am only a small seller and buyer.

[brianhe]

And therefore, as eBay charge fees on, total selling price and postage costs combined, then charges GST on the fees, isn’t that charging pro rata GST on postage

[k1ooo-slr-sales]

I did say in my post:

So technically, you are right that you are paying GST on postage, but only 1.2% . . .  that is actually acounted for as GST on 12.2% fees.

The reality is that you are paying GST on the eBay fee . . . which is levied against the transaction total i.e. amount paid by the buyer.

You can interpret that any way you want to, but you have the power to negate that through my P&H suggestion . . . making GST on postage a non-issue.

The reason eBay charge fees on postage have been done to death on other threads back when it was introduced.

The short explanation is that eBay wants sellers to include the postage cost in their pricing and have their listings promoted as "FREE POSTAGE" as they say they have research that says buyers are more likely to buy an item that has FREE POSTAGE.

We all know the reality that postage isn't free.

Using your $10 item + $2 postage example, a seller offering a $12 item with free postage pays fees on $12.

Why should a seller who offers a $10 item with $2 postage pay less fees?

[k1ooo-slr-sales]

furthermore, you might ask:

"but what about auctions where you can't build postage into your pricing?"

Well, that too can be explained by the way eBay are trying to manipulate sellers.

eBay wants sellers to list as fixed price buy-now listings with free postage.  They have said so very often.  They talk about level playing fields and other convincing business concepts.

eBay will tell you they have research that says buyers like Buy-Now because they know the price, don't have to wait for an auction to finish and that Buy-Now items are more likely to offer FREE POSTAGE. 

Bottom line is that eBay fees, GST and other listing conditions are known to those sellers who read up on selling and keep up to date with eBay announcements.

The whinging and whining comes about when sellers misconstrue and/or misunderstand eBay fees and GST on fees.

[k1ooo-slr-sales]

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@brianhe wrote:

I certainly agree with most of your comment. But why should sellers have to realistically pay 11.2% GST.  Surely this would be a fair bit overall for volume sellers.  I am not referring to myself as I am only a small seller and buyer.

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for sellers who transact over $75K on eBay they would have an ABN, and you start getting into them having to register for GST and all that BAS activity statements and GST credits/inputs.

Bottom line is that for these sellers the GST on fees is not an issue at all.  Many of the larger businesses on eBay are not on the same fee structure as Joe Public occasional seller, they pay less due to the volumes they sell!

[k1ooo-slr-sales]

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@etb321 wrote:

True, but the point being made is the gst is being paid twice. First to Ebay and again at the AP counter.  

Tom

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sorry Tom, but you sort of have that wrong on several counts.

First one being:

This thread is about sellers paying GST.  The seller DOES NOT pay the GST on the postage at the Post Office . . . the buyer does as the "end user" in the transaction train.  When a buyer pays for postage as part of the transaction it is the buyer paying for any GST on postage at the Post Office.

And secondly:

As many have pointed out, the GST collected by eBay is GST on the fees charged by eBay i.e.

- eBay provide a service,

- eBay charge a fee for service,

- eBay collects 10% as GST on the fee for service (not the postage)

- ALL GST collected gets forwarded to the Australian Government,

- GST stands for Goods & Services Tax.

[brianhe]

This could be discussed and debated forever, but the fact is, if postage is to be paid, then the seller is paying 11.2% GST overall on the postage.  It is irrelevant whether it is on one item with postage or a thousand items.

[k1ooo-slr-sales]

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@brianhe wrote:

This could be discussed and debated forever, but the fact is, if postage is to be paid, then the seller is paying 11.2% GST overall on the postage.  It is irrelevant whether it is on one item with postage or a thousand items.

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using the example you gave many posts ago, the buyer is paying the GST on the $2 postage, the seller is paying GST on their fees.

Not going to discuss this forever.  I guess all that is left for me to write is "I tried".  I'm out now.

[padi*0409]

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@k1ooo-slr-sales wrote:

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Not going to debate this forever.  I guess all that is left for me to write is "I tried".  I'm out now.

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Unfortunately logic isn't going to work here k1ooo, the OP is fixated on being "ripped off", and is never going to be convinced otherwise...............

Spoiler

.......join me in a soundproof room and we'll scream at the perceived injustice of the whole saga.......

[countessalmirena]

OP,

the best thing for you to you may be to book a time with your tax accountant and discuss this thread and the issue. it may give you peace of mind.