Managed payments and ebay tax fee on each item

[andrew0123]

Just subbed to managed payments on my other account and i've discovered my fees are about 15.1% on a featured store for a $10 item with free postage. Ebay tax both your final value fee and 30 cent fee for 10%. All my items include free postage. If i didn't include postage as part of the final price, would this effectively decrease these tax fees or does ebay put their 10% tax on postage fees too? 

[davewil1964]

Take it to the ACCC, then.

eBay charge fees on the total transaction. They therefore charge GST on the fees for the total transaction.

It's not that complicated.

Your arguments were dismissed by the ACCC and the Commonwealth Government over SIX years ago. Bringing them up now won't change the law or prove you right when you aren't.

[digital*ghost]

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@silver-fox-bullion wrote:

Correct me if I wrong BUT ebay LABEL it as A Final Value Fee on Shipping in their FEES that postage and they are charging GST on it when they have PLAYED NO part in the transaction if the seller using a BYO option 

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The first thing you need to do here is stop thinking "ebay are charging GST".

They are not. 

eBay are collecting GST, just like every single other business who has a GST obligation. The government are charging it, businesses are obliged to collect it and hand it over to them.

If you think the GST on eBay's fees is wrong, your fight is actually with the federal government / ATO. 

[silver-fox-bullion]

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@digital*ghost wrote:

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@silver-fox-bullion wrote:

Correct me if I wrong BUT ebay LABEL it as A Final Value Fee on Shipping in their FEES that postage and they are charging GST on it when they have PLAYED NO part in the transaction if the seller using a BYO option 

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The first thing you need to do here is stop thinking "ebay are charging GST".

They are not. 

eBay are collecting GST, just like every single other business who has a GST obligation. The government are charging it, businesses are obliged to collect it and hand it over to them.

If you think the GST on eBay's fees is wrong, your fight is actually with the federal government / ATO. 

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there a number a TAX rulings already saying it ILLEAGAL to be charging GST on an transaction that a business played NO play in the transaction...    Which ebay are doing atm with the FVF on shipping when they have NOT prodived a service nor a good when it a BYO  they are in fact double dipping on the gst 

[padi*0409]

As already said by Dave and myself, the ACCC looked into it when eBay first brought it in and DID NOT have a problem with it.

............you're flogging a dead horse with this one................ 

[digital*ghost]

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@silver-fox-bullion wrote:

there a number a TAX rulings already saying it ILLEAGAL to be charging GST on an transaction that a business played NO play in the transaction...    Which ebay are doing atm with the FVF on shipping when they have NOT prodived a service nor a good when it a BYO  they are in fact double dipping on the gst 

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Stop looking at it as ebay charging GST on postage - for a start, as I mentioned in my previous post, they aren't charging it, they have nothing to do with it aside from having to collect it. Saying ebay is charging GST is like saying an employer is charging their workers income tax. 

eBay provides you a service, by making this site available for you to list items. They charge a fee to use this service. It's called a final value fee, and it's applied to the sale total when an item sells. GST is charged on the final value fee. Let's say (for the sake of ease), eBay's FVF is a straight 10%. Someone makes a sale totalling $100, ebay's fee would be $10. And then the government's "fee" (tax) is 10% of that $10, so the total the seller pays to eBay is $11. eBay keeps $10, the government gets the $1 GST. This would be the same regardless of whether it was $100 free-post, or $80 item and $20 postage, or $30 item and $70 postage. It doesn't matter. Commission is on the sale total, and GST is on the commission total. 

You may think the FVF on the postage portion is wrong, lots of people do, but that has nothing to do with GST. 

ebay do not charge GST on postage, they charge FVF on postage, and then collect GST on those final value fees because they have to.

eBay can't "double dip" on GST when all GST collected goes to the ATO.

If you instead mean "I am paying GST when I purchase postage, and then I pay GST again when I pay to use eBay to sell a postage service in conjunction with an item"  then you may as well complain about any GST you pay on the items you buy, and the fact that you're also paying GST on the FVF charged on the sale price of the item when you sell it here. While you're at it, if you pay GST on your postage supplies, and include them in your costs when you price an item / postage, then you'll need to include that in the list of complaints. 

[*tippy*toes*]

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@davewil1964 wrote:

Take it to the ACCC, then.

eBay charge fees on the total transaction. They therefore charge GST on the fees for the total transaction.

It's not that complicated.

Your arguments were dismissed by the ACCC and the Commonwealth Government over SIX years ago. Bringing them up now won't change the law or prove you right when you aren't.

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Oh, but Dennis Denuto, with his sporadic words in UPPERCASE, means he knows the LAW. It's aAMAZING how quick you CAN become a lawyer THESE days THANKS to Google.

Spoiler

Spoiler

[andrew0123]

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@ilce wrote:

Its the same. Ebay calculate the fee / commission / tax based off the total amout including any postage.

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"There's no gst on the postage component - ebay have stated this 

Ebay still takes it's 10% on the postage.

But take no gst on the postage - fees or otherwise.

The gst on fvf's is just on the item fvf's -  and not on the postage fvf's" 

The above is from this thread. https://community.ebay.com.au/t5/Selling/GST-and-Ebay-Fees-not-clear-Confused-please-help-clarify/td...

https://community.ebay.com.au/t5/Selling/GST-on-eBay-postage-prints/m-p/2078346?nobounce#M157118

I can't confirm the above though. If it's true, is this how fees for ebay managed payments work? Or do ebay now charge GST on postage fees too? 

For example, my recent managed payments sale: 

Johnny Mathis When a Child is Born Cassette tape carols country White Christmas

AU $10.00 . QTY 1

Final Value Fee AU $1.07 tax: 11 cents 

Per order fixed fee - AU $0.30 tax: 3 cents

total fees: 1.51 

So, for example, If i listed this as $3 post and $7 for item (postage cost me $3 approximately). Does this mean my tax fee would be for $7 only and 7 cents. Obviously, this is not much but if i sell 10 items per day and high value items this could add up to $30 per month. 

[ilce]

You are probably right.

If thats the case it is probably better for the OP to remove their postage from the item price and have it seperate. For low value, high volume items of course. Thats if they dont care about Ebay Plus Status.

[digital*ghost]

GST applies to all of ebay's fees.

The store subscription, FVF on item price / postage, and listing upgrades etc.

If anyone doesn't want to pay GST on their fees, the only way to avoid it is to register to collect GST yourself. Of course, then the government gets 1/11th of your entire revenue, instead of the 10% added to the fees. (i.e. instead of paying $1 GST on that $100 sale, you'll pay $9.09).