Postage and people complaining about cost

[silver-fox-bullion]

It been really eye opening reading so many people complaining about postage costs. The thing that gets me there must be alot of sellers running business like selling but NOT abn registered. If they were your postage is FREE no matter what it costs. As all postage costs are a tax write off for business. Just something to think about

[joz15au]

PS then clarify with your accountant.

[*tippy*toes*]

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@joz15au wrote:
PS then clarify with your accountant.

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I doubt he has one because he thinks he already knows everything he needs to know.

Spoiler

Love to be a fly on the wall when the ATO catches up with him!

[joz15au]

@*tippy*toes*
Sorry I actually meant my my posts for Bump who was talking about tax implications (I always forget that using my phone replies to the OP), but yes I do agree.:)

[gutterpunkz05]

I just wish the OP would learn how to answer specific posters,  I gave up on this thread  as I was in danger of becoming as confused as the  OP.

As for their tax advice, believe it at your peril

Paying double GST on postage..... Rubish.      Ebay charge  GST on their fees, not postage from Oz sellers.

Mind you it would be great if tax worked as OP believes, buy anything you like, business related of course, and just send ATO

the bill

[silver-fox-bullion]

it quite clear a few need to do some reseach before commenting.      Something THAT you own can not be TAXED to the ebay fee thing it clearly stated it on postage on their invoice.   EBAY are taxing postage that someone already owns with a BYO option.   They have NOT play a part in the seller getting that postage so therefore have NOT prodived a good NOR a service so they fail the GST test.    I suggest a few make a few phone calls before commenting any further.    

As it clear a few have tried to get the the FVF dropped in the past and failed as they have gone about it the wrong way even a FEW that are commenting on this post.   THEY have gone the fee itself.   When they should of been attacking it from a GST line of attack for the BYO postage.     The fee itself is legal under some conditions but that a different matter for a different day (this comes back to offline auction/clearence houses and them collecting GST AND NOT depending on whom the seller is of the good that they are auctioning)

The group that are so fixed on the fee it self I take it will be happy to keep paying it when we get it throwing out BY the gst laws...

[paper-jack]

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@i-once-was-bump wrote:
".... I don't think I need the stress of ebay."

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I find the most stressful aspect of ebay is reading some of the posts on these boards. It would be so much easier if OP's gave some thought to their initial post and if subsequent responders gave thoughtful and relevant replies.

Selling and buying on ebay can be a smooth process if one does some careful research. The trick is to not get sucked into whirlpools on the boards when doing that research.

The majority of buyers and sellers I've transacted with on ebay have been very pleasant, helpful, thankful. Just as are the majority of real buyers and sellers I deal with face to face. Naturally there are some people in these and every other areas of my life that I hope never to deal with again, a local crazy dentist being top of the list. The beauty of ebay is the blocked user list.

When it comes to postage, as a buyer, if the item isn't available locally and I desperately need/want it, I pay without question. Although frequently I check out other items from a seller to make the most of combined postage if offered. As a seller I offer combined postage to give buyers the option to save some money.  In the past I have also had many buyers taking advantage of free pick with no problems. The reverse in face as some buyers check out other items to pick up at the same time.

[gutterpunkz05]

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@silver-fox-bullion wrote:

it quite clear a few need to do some reseach before commenting.      Something THAT you own can not be TAXED to the ebay fee thing it clearly stated it on postage on their invoice.   EBAY are taxing postage that someone already owns with a BYO option.   They have NOT play a part in the seller getting that postage so therefore have NOT prodived a good NOR a service so they fail the GST test.    I suggest a few make a few phone calls before commenting any further.    

As it clear a few have tried to get the the FVF dropped in the past and failed as they have gone about it the wrong way even a FEW that are commenting on this post.   THEY have gone the fee itself.   When they should of been attacking it from a GST line of attack for the BYO postage.     The fee itself is legal under some conditions but that a different matter for a different day (this comes back to offline auction/clearence houses and them collecting GST AND NOT depending on whom the seller is of the good that they are auctioning)

The group that are so fixed on the fee it self I take it will be happy to keep paying it when we get it throwing out BY the gst laws...

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You still do not get it, and it is obviously pointless trying to explain it too you.   Have fun wasting your time with the ATO, ACCC and anyone else you think  cares.

But at least you have learnt how to post, so apparently my post was not a complete waste.

[digital*ghost]

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@silver-fox-bullion wrote:

it quite clear a few need to do some reseach before commenting.      Something THAT you own can not be TAXED to the ebay fee thing it clearly stated it on postage on their invoice.   EBAY are taxing postage that someone already owns with a BYO option.   They have NOT play a part in the seller getting that postage so therefore have NOT prodived a good NOR a service so they fail the GST test.    I suggest a few make a few phone calls before commenting any further.    

As it clear a few have tried to get the the FVF dropped in the past and failed as they have gone about it the wrong way even a FEW that are commenting on this post.   THEY have gone the fee itself.   When they should of been attacking it from a GST line of attack for the BYO postage.     The fee itself is legal under some conditions but that a different matter for a different day (this comes back to offline auction/clearence houses and them collecting GST AND NOT depending on whom the seller is of the good that they are auctioning)

The group that are so fixed on the fee it self I take it will be happy to keep paying it when we get it throwing out BY the gst laws...

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Quick question...

How can you "own" postage? In my case, the buyer purchases my items and then, as a part of the sale contract, also contracts me to purchase and use a postage service on their behalf. I do not own the service, even though I facilitate it. Like how I would (to continue using my previous plumber example) contract a plumber to purchase and install a new cistern in my bathroom - if the plumber already owns a cistern, does that mean I won't pay GST on their service fee to install it, but I will if they have to dash up to a hardware store there and then to purchase one?

In any case, it would help me out a lot more if instead of saying "Do your research" (I totally need this phrase on a t-shirt, but I digress), could you please cite, as well as link to, the GST laws in question you are referring to that can clarify things further for me - even an article that summarises them will do. Don't forget you are talking to a bunch of sellers here - I may be GST registered and therefore pay no GST on any of my fees, but lots of other sellers here aren't, and I'm sure if there was a law that could get the GST on fees repealed, a significant number of sellers would be only too happy to help advocate toward that end, as it would mean the ATO would owe them a tidy sum of money by now. 

[andrew0123]

I find the regulars on the forum with huge number of posts do not understand the point silver is making - which is one that either ebay or the government are taking extra GST. Which is true, and is obviously not right. I think the regulars want to keep peace and provide "by the book" advice and avoid talking about the evils of big corporations or the governments. 

[digital*ghost]

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@andrew0123 wrote:

I find the regulars on the forum with huge number of posts do not understand the point silver is making - which is one that either ebay or the government are taking extra GST. Which is true, and is obviously not right. I think the regulars want to keep peace and provide "by the book" advice and avoid talking about the evils of big corporations or the governments. 

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If you understand how GST works, it becomes very clear that this is not true. If you understand that paying GST when you purchase postage, or even products, postage supplies, and anything else you use to run a business on eBay is absolutely not the same thing as paying GST on the fees eBay charges, you can also see the statement "government are taking extra GST" is not true. 

This is exemplified by the fact that GST-registered sellers like myself do not pay GST on our eBay fees. 

GST is a consumer tax, so the end-user of an item is who pays GST. 

For example, if a non-registered seller buys a $55 item including GST to resell, their cost of that item remains $55. If they sell it for $100 they have not collected any GST that they then need to pass on to the ATO. They are also the "end user" of eBay's services and can't claim the GST they paid on their fees as a credit towards their GST debt,

If a GST-registered seller purchases that same $55 item, their cost of goods is only $50, because they can claim that $5 in GST as a credit towards what they will owe the ATO. The same applies to the GST on fees. (If they sell it for $100 as well, then the GST paid by the buyer is $9.09, but they only have to give the ATO $4.09 because they basically pre-paid that initial $5). 

If all the GST on eBay's fees are claimable as a credit for GST-registered sellers, there is no point in charging them in the first place because it doesn't affect the final sum the ATO receives from that particular seller - if the ATO were interested in getting "extra money" even in the short term, my fees wouldn't be GST exempt.