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....

[merfar2107]

Australians will have to pay GST on items worth less than $1000 bought from overseas from July next year.
Read more at http://www.9news.com.au/national/2017/06/21/12/57/aussies-get-gst-reprieve-on-cheap-imports#Bj35llK6...

So does this now mean that it's not starting until next year? I'm referring to the tax on the 'online service' provided by ebay. sorry if it's a silly question; I'm just trying to understand.

[davewil1964]

Separate things. This one is for providers of online or digital services and it applies to fees they collect from Australian sellers. Nothing to do with the importation of goods.

[merfar2107]

Damn. I thought that might be the case

Spoiler

[jfmgray]

---

@Anonymous wrote:

Sitting duck = non-GST registered ebay seller.

---

That's me.  But no big deal - it will cost between $50- $60 each month and won't break me.  Have put up my item and shipping prices by 5 cents to cover the 10% on fees.

[lyndal1838]

What a refreshing change....a seller who understands what is going on and is not complaining about ebay following the rules of the ATO and Australian Law.

[theforevergarden]

Can someone break it done for me a bit, I'm still not even remotely clear of it based on the information eBay have provided.

Say I sell an item for $1 and it has $1.50 postage.
Final value fee on the item is $0.10 and $0.15 on the postage.

Is it's simply a case of eBay placing GST of $0.01 on the item and $0.015 on the postage? (ie effectively a 2.5cents increase in fee) or am I way off base?

[digital*ghost]

---

@pnie1121 wrote:

Is it's simply a case of eBay placing GST of $0.01 on the item and $0.015 on the postage? 

---

Yes. 🙂

For non-GST registered sellers, the simplest way to view this change is as a fee increase - if you currently pay 9.9% FVF, it will go up to 10.89%of the total amount the buyer pays.

[davewil1964]

10.9%. eBay don't seem to have enough volume to work to 10.89%.

At least that's what their new fee table says.

[digital*ghost]

---

@davewil1964 wrote:

10.9%. eBay don't seem to have enough volume to work to 10.89%.

At least that's what their new fee table says.

---

Consistency has never been eBay's strength. 😄

That's from their FAQs page, which is linked in the same email as the new rate table.

It wouldn't surprise me if eBay did round up, but I currently pay 8.55% in FVF on most of my items, so they are capable of working to the extra decimal place, and with 10% GST added it would - technically - be 9.405%, however I expect in that case it will assuredly be rounded up to 9.41%

[knewdoors]

great... ebay, paypal, australia post and now an alleged "conservative" govt with yet another tax.. every penny someone wants a cut..it's a disgrace