Netfix tax

[seven7sevenx]

Hello everyone.

I wish to ask more experienced sellers about this Netfix tax. I sell my own things here sometimes and have not been selling for a while now. I heard about this new Netfix tax. Do I have to pay it, if I sell my preowned things on Ebay (instead of having a garage sale ;)). Is this tax for stores/business sellers?

Cheers for any comments

🙂

[wide-world-of-stamps]

My understanding is that the "Netflix Tax" is the GST we pay on the Ebay fees, so pretty much everyone (except the bigger business sellers registered for GST) pays it.

[lyndal1838]

This is the GST that is payable on the ebay fees.....ebay collect it from you and remit it to the ATO.  Ebay has increased the rate of the final value fee to cover this 10% charge on the fees.  You do not have to do anything and the GST is a claimable business expense when you do your tax.

It has nothing to do with the items you sell.....if you ever get to the turnover ($75,000) that requires you to pay GST you will pay it yourself to the ATO.

[chameleon54]

The " Netflix tax " is very specific. It relates to intangible services sold by companies that are not based in Australia and do not currently pay GST on the services it provides. Intangible services are principly digital services that do not have a physical presence, such as overseas streaming of movies and TV shows etc. ( hence the name )

Ebay is caught up in this as its main Company is registered in an overseas tax haven  ( Switzeland from memory ) Ebay provides the digital platform that Australian sellers sell on. ie. Digital internet based auctions and BIN listings.

People who sell on ebay use these digital services and so pay 10% extra in GST tax to the ATO on the ebay service charges only. Ebay collects and remits this money, the seller does nothing extra except pay the extra small fee, added to their commission and listing fees.

 The Netflix tax only relates to ebays fees and has nothing really to do with the privately owned items you sell. You dont have to do anything outside the norm and the tax generally adds up to around 1 -1.5% of your total item selling price including postage, so not a biggy for private sellers.