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....

[ourphonecase]

So if I am already paying gst for my sales of my products what difference does it make?

[aussie-picker]

Yes same here,

Sounds really suss as it wont recognise ABN # and you can't even fit your business name into the space provided.

So im confused now.

The ATO has your details anyway , Ive had the same ABN# for the last 15 years and do my quarterly BAS/PAYG.

Why do Ebay even need your personal Tax info anyway , its none of their business ?

[phorum_junkie*]

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@domino-710 wrote:

Why can't this be simples.

eBay charge us fees for selling - it's (eBay) an online service.

The so called Netflix Tax will be on those fees - not the item.

10% of the final value fee.

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Although I know very little about GST but reading the email and following the links to the ATO I read it as the tax is paid on the fees as the service provided by ebay is a digital one and it would not matter if the goods are going overseas or not as the fees are for a digitally provided service and has nothing to do with what is being sold or who or where it is being sold to. The fvf is the same if an item is going to the next suburb or half way round the world.

[lyndal1838]

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@ourphonecase wrote:
So if I am already paying gst for my sales of my products what difference does it make?

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The GST will apply to the fees you pay to ebay, not the items you sell on ebay.

As an example. if you pay ebay $10 in fees now, when you receive your next bill you will pay the $10 + 10% = $11.

[character_parties_aus]

I remember a few years ago when  I still had faith in ebay I called them up and asked them how to list an item for sale in Australia and in the USA if I was charging GST on the item in Australia and not in the USA. I am still waiting for the response.

[debonnairefashions]

The tax can be confusing. I have contacted ebay and they have said this will apply to your monthly invoice less any postage you have paid. This also includes any listing fees you may have incurred that was not free.

No point blaming ebay. This is the ATO, not ebay.

[creativelilyaustralia]

Ppl pay tax on their wages, make voluntary (or involuntary) payments into their superannuation & when they retire they're slugged with tax again on their superannuation, which they've already paid tax on with their original wages during their working years. Now the general population pay GST when they purchase an item at a B&M store already BUT should they choose to sell it on eBay, they get slugged again for another GST on the sale of an item that they've already paid GST on.

Not complicated, just straight out double dipping courtesy of ATO. Who would like to be paying a second round of the Emergency Services Levy on eBay as well - anyone?? 

Night folks.

[davewil1964]

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@creative-crafts2 wrote:

Ppl pay tax on their wages, make voluntary (or involuntary) payments into their superannuation & when they retire they're slugged with tax again on their superannuation, which they've already paid tax on with their original wages during their working years. Now the general population pay GST when they purchase an item at a B&M store already BUT should they choose to sell it on eBay, they get slugged again for another GST on the sale of an item that they've already paid GST on.

Not complicated, just straight out double dipping courtesy of ATO. Who would like to be paying a second round of the Emergency Services Levy on eBay as well - anyone?? 

Night folks.

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You really need to get an understanding of tax law.

In your highlighted instance, the seller is NOT paying any GST on the item sold, but IS paying GST for the fees that eBay has charged for providing you with the service you availed yourself of, in order to sell the item.

It is not complicated, and these sorts of red herrings can only be construed as trying to muddy the water.

[jfmgray]

I have been corresponding with eBay about the GST issue.  eBay confirms that it is required from 1 July to pay GST on its fee revenue from Australian sellers and it will pass on this cost to the sellers unless we register our ABN with eBay.  I have an ABN but I am not registered for GST.  eBay advises me that I should record my ABN with them even though I am not registered for GST as then I "will be exempted of getting GST charges on top of your seller fees on eBay".

I have sent all this to the ATO for clarification - not that I don't trust eBay's advice but I don't trust eBay's advice!!  AND it doesn't add up!!  I get that eBay may now have to pay GST on its revenue (about time) and I get that, like many businesses, eBay will simply pass on this cost to sellers but I can't see how eBay can waive the GST for sellers with an ABN - even those who are registered to collect GST who would claim it back anyway.

Still wonder if this GST issue will also apply to paypal fees.

[davewil1964]

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@jfmgray wrote:

I have been corresponding with eBay about the GST issue.  eBay confirms that it is required from 1 July to pay GST on its fee revenue from Australian sellers and it will pass on this cost to the sellers unless we register our ABN with eBay.  I have an ABN but I am not registered for GST.  eBay advises me that I should record my ABN with them even though I am not registered for GST as then I "will be exempted of getting GST charges on top of your seller fees on eBay".

I have sent all this to the ATO for clarification - not that I don't trust eBay's advice but I don't trust eBay's advice!!  AND it doesn't add up!!  I get that eBay may now have to pay GST on its revenue (about time) and I get that, like many businesses, eBay will simply pass on this cost to sellers but I can't see how eBay can waive the GST for sellers with an ABN - even those who are registered to collect GST who would claim it back anyway.

Still wonder if this GST issue will also apply to paypal fees.

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Being aware that eBay will then classify you as a business seller, with all the resultant lack of access to promotions. It might apply to Paypal as it is a digital service, but Paypal is a quasi-bank financial service provider. We will have to wait and see I suppose.