Netflix tax

[stickerswa]

Just got an email from ebay...

From 1 July 2017, Goods and Services Tax (GST) will apply to fees on eBay.com.au, due to new legislation in Australia (the "Netflix Tax").

Businesses registered for GST will not be affected by this change if you register your Australian Business Number (ABN) with eBay here.

Anyone else feel a fee increase coming to cover this....

[personalised-memories-and-gifts]

Wouldn't Australian Post postage costs  already have GST included, But the commission  Ebay charge us on postage ( and do nothing at all ) will increase as we  will charged GST on that commisson . It a joke

[*tippy*toes*]

Netflix tax? Phew, I'm safe, I don't have Netflix........ 😄

[eurekalarry]

After 14 year relationship with Ebay and substantial sales I will not be doing any more business whatsoever on Ebay until all the questions raised on this site have been satisfactorily canvassed/answered by Ebay themselves....and their responses MUST be from Australian Tax advisors including confirmation by ATO.....refunds on fees,tax on fees, tax on waived fees, ? etc etc.....what an accounting nightmare with the only certainty being we pay..they don't.......

[tcrazer]

I'm assuming this tax only applies to those selling digital goods as that is what the link they supply to the ATO website says.  a 'netflix' tax is for digital goods and services.  As i only sell physical items, I'm guessing this doesn't apply

[vproshop]

I agree that this message from Ebay "Netflix Tax" is completely confusing... Its worded 

in such a way that interpretation of this message can be of different conclusions.

The links work for me, and it goes to the ATO website.

Genuine here.

The registering for GST Exempt page, looks wrong,I think this is just to 

collect data for the ATO. It doesn't sound right that ABN holders who are registered for GST

is exempt from paying GST.... You tell this to the ATO and I bet you have an Auditor turn up next morning

at your door step.

With regards to the Ebay Postage label.

Actually, $7.40 for 500g satchel example, already includes GST.

So they can't charge GST twice....

After 5 days, you can actually print out a Tax Invoice for the $7.40 Postage label that

shows you paid the GST inside the $7.40 price of postage.

So, I doubt Postage will go up.

But I think the Ebay will now charge 10% GST on the Fee part on your invoice.

Which you can claim back on your BAS, if you have an ABN and registered for GST and do your 

BAS's and Tax Returns.

All others will have to cop the GST as an added cost.... its like buying goods at your local corner store, you pay GST on most of that.

(exceptions being fresh produce, etc etc etc)

Anyway, If someone can call Ebay and find out what the bloody hell is going on and clue us all into it, we would appreciate and Kudos you.

Thanks.

[going*gone]

If Ebay are going to add 10 % gst to sellers fees, that would be a total of about 30% including PayPal fees.
If your cost item is $80 and you sell it for $100 you actually loose $10.00 and so much time listing packing and sending....Ebay need to make their invoice GST inclusive otherwise it's ...bye bye eBay from me

[going*gone]

I'm must be confused, I thought it's gst on the sale of items.

[tazzieterror]

How on earth did you arrive at a figure of 30%? I think it may be your arithmetic skills causing you to lose money on eBay, rather than the fees! 😄

[going*gone]

😂😂😂

[digital*ghost]

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@tcrazer wrote:

I'm assuming this tax only applies to those selling digital goods as that is what the link they supply to the ATO website says.  a 'netflix' tax is for digital goods and services.  As i only sell physical items, I'm guessing this doesn't apply

---

eBay are selling a digital service, so the GST will be added to the cost of their services. 

So, come July 1st all fees on eBay will assuredly increase (i.e. if they were not going to add it on top, there would be a new advantage to registering for GST, but eBay simply states that those who are registered won't be affected, so everyone else will be).