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....

[westend_car_sales]

Most facebook people are a head ache, rather pay fees than put up with most of the morons

[bluebudgies]

It probably depends what you're selling.  I get the occasional time-waster but 99% of them are really good. Wish I'd tried it years ago!

[Anonymous]

So...sellers with no ABN will be slugged an extra 10%

while sellers registered for GST will have no extra 10% added.

Any company registered to collect GST must provide a TAX invoice

to all customers.

Both sellers should get the same invoice but only one of them

will be able to claim the GST as an input tax credit in their BAS.

The only 'exemptions' from paying GST ( that I can find ) relate to cars.

Am I missing something ?

GST Exemption

[dylan11235813]

Am I missing something?? The GST is applied to the fee Ebay Charged\ on Australian sellers

Is there a credit that can be claimed or what? Ther is no credit to be claimed though even if registered for GST.

[Anonymous]

Yes Dylan it's a bit odd. All sellers should get the same amount payable.

Those registered for GST will be able to claim the GST component as a tax credit

and those not registered for GST will claim the amount paid as a business expense.

Yes you can operate a business without being registered to collect GST.

[digital*ghost]

This is information related solely to international businesses registering to collect GST on their digital services, and how it will be implemented - it is not necessarily the same as an Australian business collecting GST. 

From the ATO:

"If you are an Australian business registered for GST, then GST will not apply to the services or digital products you import for use in your business. If you are not registered for GST, GST will apply to these purchases.

The supplier will not charge GST if you:

• provide them with your Australian Business Number (ABN), and
• state that you are registered for GST."

This following section is not applicable to Australian sellers on ebay - this bit is relevant to international sellers - like eBay - who are now required to collect GST, so I hope it helps flesh out how this is going to work for those who haven't seen the info as yet:

"Registering for Australian GST

If you sell digital products or services to Australian consumers and you meet the registration turnover threshold, you need to register for GST with us. You will meet the registration turnover threshold if your sales to Australian consumers in a 12 month period are A$75,000 or more. Once registered, you need to report and pay GST to the ATO on sales made from 1 July 2017.

How to register

A simplified system will be available for you to electronically register, lodge and pay the GST. You will be able to access this service on the ATO’s website soon. Under the simplified registration system, you:

• will register electronically with minimal proof of identity
• will lodge and pay GST quarterly
• do not need to provide a tax invoice or adjustment note to your customers
• are not able to claim tax credits."

https://www.ato.gov.au/Business/International-tax-for-business/In-detail/Doing-business-in-Australia...

[Anonymous]

So those who can least afford it will be slugged 10% and those who are able

to afford won't be slugged at all.

It still essentially amounts to a big pile of stuff you wouldn't want to step in.

[lyndal1838]

---

@Anonymous wrote:

So those who can least afford it will be slugged 10% and those who are able

to afford won't be slugged at all.

It still essentially amounts to a big pile of stuff you wouldn't want to step in.

---

This is the way it has always worked....the end user pays the GST.  Businesses who are GST registered can claim it back anyway.  This way it cuts out the extra step.

People who are not GST registered can still claim it as a tax deductible expense.

[digital*ghost]

---

@Anonymous wrote:

So those who can least afford it will be slugged 10% and those who are able

to afford won't be slugged at all.

It still essentially amounts to a big pile of stuff you wouldn't want to step in.

---

Not necessarily. A business that is required to collect GST is simply one which has a turnover of $75k or more, and turnover doesn't equal profit. I am quite sure there are a few businesses that are more profitable with turnovers <$75k than some that have higher turnovers. 

Also, you don't have to be turning over $75K+ to register for GST, you can register to collect at any time (and many businesses under the threshold will do so). Obviously, I would advise some very thorough research into how it might affect a business beforehand and not registering just to avoid paying GST on eBay fees. 

[lyndal1838]

Do not register for GST until you have too.   Until you reach a turnover of $75,000 do not even think about it as you are then in a cycle of paying GST to the government every quarter.   It is false economy to try and save a few dollars on ebay fees.