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....

[jfmgray]

I am under the 75k threashold so I choose not to be registered for GST for financial reasons.  So once eBay adds a second serving of GST to the postage lables, it becomes cheaper for me to go directly to Australia Post compared to SOME eBay postage lables.

eBay keep telling me to register my ABN with them and I will be exempt from being charged GST.  Not sure the ATO woul;d support their position. 

[lyndal1838]

Good move not to register for the GST unless you have to.

You will not be charged GST on the postage....just on the fees charged by ebay in connection with postage....at least, that is what I understand from reading the email.

[jfmgray]

According to eBay we will be charged GST on eBay postage label cost  (if you use them) and GST on the postage FVF and on store fees.  They tell me they will simply add 10% onto the bottom line of our monthly fee total, unless you record your ABN with eBay

[digital*ghost]

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@jfmgray wrote:

According to eBay we will be charged GST on eBay postage label cost  (if you use them) and GST on the postage FVF and on store fees.  They tell me they will simply add 10% onto the bottom line of our monthly fee total, unless you record your ABN with eBay

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That seems to contradict what others have been told, as some have mentioned being told it's on everything but postage paid. I tend to think someone, somewhere, has got something wrong. 

If eBay add 10% to postage labels, which already have GST included according to the invoices, then a $7.40 label will become $8.14, meaning the GST component would be $1.41. If the base price of postage (before GST) is $6.73 (BX1 box), then the GST component would amount to over 20% ($1.41 as a percentage of $6.73).

I think there's a lot of staff at eBay who have little to no understanding of this tax system, so I am reluctant to trust any info from them at the moment, TBH. 

[jfmgray]

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digital*ghost wrote:

I think there's a lot of staff at eBay who have little to no understanding of this tax system, so I am reluctant to trust any info from them at the moment, TBH. 

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Couldn't agree more..  The advice from eBay to me is that the current postage label cost is collected by eBay but is an Australian Post product (ie the tax invoice is from Australia Post so I assume eBay collect for Australia Post for a commission??).  The messages to me argue that. like other sellers, Australia Post's products have GST added already. eBay states it will add 10% GST to all fees it collects including postage labels (my guess is that is the easiest way for eBay to manage the new GST impost) resulting in the double GST for postage labels.  

My message to self  - stop wasting time trying to get an understandable answer from eBay about this.  Better spending the time watching footy. 

[davewil1964]

I did the maths for a 500g satchel in eBay news.

Suffice to say I will wait and see. If eBay do indeed end up charging GST on postage, I will go back to using prepaid AP satchels. A win for me and AP and a loss for eBay. Their choice.

[personalised-memories-and-gifts]

I am going back to Australia post direct- just activated my account  - same price for me and only pay GST once.

I'm sure eBay have knowledge of the discussions going on and they havn't made a statement explaining if postage will be subject to the second GST - No statement make me think there will be a GST to the total cost of the invoice (which includes Postage).

[davewil1964]

Satchels, bought in bulk, are significantly cheaper than Mypost. Just sayin'.

[prado1]

I thought that under the current GST laws if GST is not mentioned as part of the price or fee then the GST is included in that fee otherwise the service providor need to supply a GST Invoice.  From my dealings with eBay I have never recieved a GST invoice.. So to me.. GST was always included..  So I think they are going to double dip now..  Be interesting to see how they adjust their fee structure..  Anyway the whole eBay thing is starting to get to me..  I think I'll just abandon ship..

[lyndal1838]

Ebay has never had to pay GST before.

If they were including it in the invoices they should have been issuing Tax Invoices with the GST specified.

They are not double dipping.