I just had a sale under my new eBay Basic store and I have a few concerns / questions that could not be answered by the support people when I chatted with them.
Now it was only a small sale, but it is the fee percentages that I am confused about as they are not adding up correctly, including the GST addition to the fee.
The sale was for $4.40 in the Media catagory.
The Final Value Fee (Standard order level fixed) was -$0.30 then -0.03 GST added, total -0.33 (This one is ok!)
The Final Value Fee (Standard variable) was -$0.52 then -$0.06 GST was added, total -0.58 (Lets break this one down!)
The sale being 4.40, and as per the Basic Store rate for Teir 3 listings (that this one falls under) the fee should be 11.3% (or in decimal it would be 0.113), so 4.40 * 0.113 = 0.4972, now rounding that off you get 0.50, or $0.50 at 11.3%. But the problem is that I was charged $0.52 which, if going the other way, 0.52/4.40 = 0.118181 or rounded off to two decimal points, 0.12, which is 12% not 11.3% on a $4.40 sale.
Then the GST was added, in this case the charge was $0.06, but lets work out the GST on the fee. Starting with the amount I was actually charged (that is the 12% of 4.40, being $0.52, or just 0.52, you simply multiply that amount by 10% or 0.1 to get the GST to add. So if you are still following, 0.52 * 0.1 = 0.052, and when rounded off should be 0.05 or $0.05 not $0.06. You are meant to round down if under 5 and up if over 5! This rounding up to 0.06 makes the GST charged on the fee 11.5% not 10% as per government rules. (0.06/0.52 = 0.11538)
So basically, eBay is charging 11.5% GST on fees instead of 10% and 12% instead of 11.3% on sales!
Unless I am somehow mistaken, an explanation would be great! The best I could get form support when I went though all this with them was:
“I understand your point, but don't worry pre GST amount might be showing due to some technical glitch. However, total charge after adding GST is correct and you will be charged at 11.3% for basic store in managed payments.”
But this is not what the invoice is showing and what I have been charged.
