How to factor in taxation ebay.

[erg-auto-electrical-wholesalers]

Is it 10% of the total price I must pay tax?

Does the ebay calculator include the paypal feed?

Do i calculate the paypal fees by deduction the ebay fee from the original sale price and then using the calculator?

Thanks.

So in reality it is 26% I must cover.

10% tax

12% ebay

4% paypal.

Is that right.

[erg-auto-electrical-wholesalers]

I do not run it.

He runs it.

I just help him upload the items he wants to sell on the on-line store, and how he wants me to reply to the messages and navigate Ebay till he can do it himself. You ever taught an old person how to use internet explorer? Then you feel me.

I have nothing to do with the runings of his business.

When I ask, I ask on behalf of him.

He is not very computer literate.

So please seperate the two.

But yes he is ABN registered

[clarry100]

Having an ABN does not automatically imply that you are registered for GST or need to be. These are two different things.

My wife and I operate two ebay stores and each of us has our own ABN.

But we are not registered for GST since neither of us comes even close to the $75K threshold in total annual sales volume yet.

But we are subject to normal income tax and that is why we employ the services of a registered tax consultant/agent.

I would strongly suggest you do the same if you are not very familiar with tax requirements. The ATO will not listen to "I did not know" if they haul you up for a desk audit. You have to know, or at least have a tax agent on board who does know, thats what they get paid for.

[audio-spot]

So if your uncle has a shop front and you are helping him to grow the business with an eBay presence, nothing much will change from his normal avenue of sales.

No doubt he'll already be collecting GST from his shop, and you will need to do so on eBay.

He will already have expenses from running the shop. PayPal and eBay fees will be an extension of those expenses.

Taxable income will probably be in the form of company tax (assuming his shop is setup as a company) which is currently 28.5%.

Your uncle may not be good with the internet, but if he's been running a shop for a period of time no doubt he would be fully aware of how sales, profit, expenses, and tax work.

[247newdeals]

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@erg-auto-electrical-wholesalers wrote:

I do not run it.

He runs it.

I just help him upload the items he wants to sell on the on-line store, and how he wants me to reply to the messages and navigate Ebay till he can do it himself. You ever taught an old person how to use internet explorer? Then you feel me.

I have nothing to do with the runings of his business.

When I ask, I ask on behalf of him.

He is not very computer literate.

So please seperate the two.

But yes he is ABN registered

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You say your uncle is already running a business surely he pays tax and GST if required why don't you ask him because how he pays the tax on the Ebay income will be 100% the same as the tax he pays on his current business.

As far as teaching an old person how to use Internet explorer well I am no spring chicken and a LOT of older people are more than comfortable doing the basic on a computer which is all that is needed to run a Ebay store, I use to run a company teaching circus skills and one thing I learnt was there is no such thing as a person that is hard to teach just teachers who lack the requirements to pass on the knowledge 

[lyndal1838]

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@erg-auto-electrical-wholesalers wrote:

  You ever taught an old person how to use internet explorer? Then you feel me.

I have nothing to do with the runings of his business.

But yes he is ABN registered

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 I AM and old person and I taught myself to use IE....and Firefox and Chrome as well as a few other browers and programs on the computer.

If he has an ABN he would also be submitting a BAS so I presume he has an accountant to look after his tax affairs.  The accountant would be aware of when GST kicks in.

It might be a good idea to let your uncle know that the prices on ebay are GST inclusive....he cannot add any more to the invoce after the sale.

[phorum_junkie*]

Me too Lyndal, an oldie and mostly self taught, I did do an IT course many years ago, think it was about the time of Windows 3.1, as I was not up on a lot of things and was volunteering at a place where we taught computer skills to those with impaired vision .  The internet is a completely different ball game now but I believe I have pretty well kept up, old as I am 🙂

Rather than teaching your Uncle a problem loaded, glitchy, non ebay friendly browser like IE why not show him on Chrome, Firefox, Opera, Safari or any one of a dozen other browsers that are more ebay friendly.

[erg-auto-electrical-wholesalers]

I already tried the chrome switch.

He like IE.

It is what it is.

I don't need anyones help in that area but thanks for the gesture.