I only sell books do I really have to get an abn and business name? I'm lucky if I make $50 a week

[mummadoris]

Also I offer free postage and with the other new changes I would have to add another $8 to my books (mostly around the $10)

why?

[kitty-kat-kollection]

Wait a sec, why do you think you have to get an ABN? I sell quite a bit and have never had an ABN. Ebay income is treated like any other earnings. If you earn above $10,000 (don't quote me), you pay tax. Otherwise, you don't. Either way, no need for an ABN.

I'm also not sure what the problem with postage is. You can still offer free postage...

[digital*ghost]

Talk to an accountant, they are really the only ones who can advise you what your obligations are in your specific circumstances, because some things tend to be hotly contested amongst the general public and the information available from various government sources is inconclusive enough to never really know for sure what you need to be doing. 

Here's what is known for sure, though.

If you are operating a store and listing with the intent to make a profit, you're running a business and are entitled to an ABN, but not necessarily obliged to have one (unless / until their turnover hits $75k in any 12 month period). Any business operating under a name that is not their own is required to register their business name, and an ABN is required for that. (One of the things I tried to seek clarification for, was whether or not having a virtual store on a markeplace and being required to name that store counts as operating under a business name, assuming the store is operating as a business, but the proverbial jury is out on that one).

All income needs to be declared, even if you are operating at a loss, there is no threshold for this. 

[lyndal1838]

You do not need an ABN or business name to sell on ebay and what has free postage got to do with an ABN?  What new changes are you referring to?

You do know that postage is not free.....you need to build the cost into your item price as well as any ebay or paypal fees so your buyer pays them.

[davewil1964]

Managed Payments includes what would previously have been paid to Paypal, so the new fees are close to the old ones. And have for many years been based on the total amount of the transaction, regardless of how postage is apportioned.

You have presumably been 'invited' to register for MP. There is a fair bit of information attached to that invitation, as is the clear option to register as a business or private seller.

[whoisbiggles]

There is no minimum threshold for declaring earnings. 

If you are not declaring your ebay profit (or loss) on your tax return, with all the data matching that the ATO does and is developing

[brco917191]

Just out of curiosity, how long ago were you invited to register for Managed Payments?

I ask because I sell fitness supplements & was recently permanently banned by PayPal with no real clarification as to why, so I will now need to use MP. They're holding all cleared funds in our PayPal account for up to 180 days with no recourse.

When I contacted the help team I was told that I needed to wait for an invite & that there was a backlog of integrations, so I may be waiting a while for that invite. They mentioned all accounts would be offered MP by April 28th, 2021, so over amonth away.

In the meantime, my store is on holiday mode as I can't accept payments without PayPal apparently. As a small business sitting on $20k worth of stock, this has been crippling for us.

Interested to know whether the invite system is random or prioritized based on sales, if anyone has any feedback that would be great.

Sorry for the essay... haha

[davewil1964]

I have been on MP for a couple of weeks.

Payments are smooth and fees are in line with previous fees. For my store. I suspect they will be more for my non-store, but that will take a couple of weeks to determine.

[brco917191]

Awesome, thanks for the info.

Can I assume MP negates the need for a linked PayPal to ebay account at all? It just pays directly into your bank account, correct?

[davewil1964]

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@brco917191 wrote:

Awesome, thanks for the info.

Can I assume MP negates the need for a linked PayPal to ebay account at all? It just pays directly into your bank account, correct?

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Correct