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....

[starwood2111]

I don't know if I am doing it wrong but I give the ATO 10% of all my ebay sales and claim input credit for the wholesale item cost , postage and ebay fees. Just like I do in my shop...

[lyndal1838]

You should not be claiming an input credit on ebay fees....they are not subject to GST yet.

Didn't your accountant pull you up on that?   You can claim ebay fees as a tax deduction but not an input credit.

[starwood2111]

How about when you buy postage through ebay ?

[jfmgray]

eBay has advised mt the 10% GST will apply to all fees including eBay postage labels.  This means that some of eBay's labels will now be more expensive than Australia Post products as AP already have GST build into their products.

[lyndal1838]

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@starwood2111 wrote:

How about when you buy postage through ebay ?

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Presumably if you pay GST on postage bought through ebay you can claim it as an input credit.   I am not a seller so do not know the ins and outs of it.

I only commented that you cannot claim an input tax credit on the ebay fees...yet.

[bigdonut]

I think you will find that when ebay ask sellers for the ABN they are really asking overseas sellers (Chinese Sellers Etc)  that now need to be registered for GST as of the 1/7/17 if they want to sell on Ebay Australia.

If overseas sellers are not registered for GST they will not be able to claim the Tax Credits so their fees will increase by 10%

For Australian business Sellers that are already registered with the ATO there is no need to give ebay anything because ebay will issue a tax invoice for fees at the end of the month.  

[bigbrickshop]

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@jfmgray wrote:

eBay has advised mt the 10% GST will apply to all fees including eBay postage labels.  This means that some of eBay's labels will now be more expensive than Australia Post products as AP already have GST build into their products.

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I would check that information as it doesn't sound correct. The eBay postage labels already have GST included as the Invoice for them is issued by Aus Post, not eBay.

[starwood2111]

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@lyndal1838 wrote:

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@starwood2111 wrote:

How about when you buy postage through ebay ?

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Presumably if you pay GST on postage bought through ebay you can claim it as an input credit.   I am not a seller so do not know the ins and outs of it.

I only commented that you cannot claim an input tax credit on the ebay fees...yet.

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Yes its all a bit unclear but I see your point on the fees up to now at least. I wonder if I am meant to give to gst on a sale to the USA ? Its all a bit confusing....

[lyndal1838]

Ring the ATO and ask about the GST on an item sold to the USA.

As I understand it all items on ebay are sold GST inclusive.  You do not have to pay GST on overseas sales but most sellers don't worry about that as I believe it is a bit complicated to claim it back.   Technically the US buyer should pay an amount that does not include GST.

[digital*ghost]

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@lyndal1838 wrote:

Ring the ATO and ask about the GST on an item sold to the USA.

As I understand it all items on ebay are sold GST inclusive.  You do not have to pay GST on overseas sales but most sellers don't worry about that as I believe it is a bit complicated to claim it back.   Technically the US buyer should pay an amount that does not include GST.

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The easiest way around that would be to reduce the postage charged to a US buyer by an amount equal to the GST component of the sale price.