Important: “Netflix tax” effective 1 July 2017

[aus-yoyoyo]

Hi there,

I just received this email from eBay saying the following:

Important: “Netflix tax” effective 1 July 2017

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.

More information on this new legislation can be found here.

... so, apparently if you are registered for GST you can register with eBay for an "exemption" of GST on the eBay fees.  Why is this?  If I'm registered for GST, shouldn't I be paying GST on the fees?  Why would I be exempt?  I don't understand what this means.

I tried clicking the "More information" link, but it just goes to eBay.com.au home page (?)

Anyone have any idea what this is about?

Thanks!

Matt.

[domino-710]

Aaaaaaaahhhhh not quite.

The GST will only be charged on the FVF ( Final Value Fee ) charged by eBay for a sale - for the service.

[lyndal1838]

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@kks-second-hand-treasures wrote:

I spoke  on chat the other day it comes into affect on 1st july 2017, you will now be charged 10% GST on all purchases and if you are a seller you will be charged 9.9% for selling and postage (due to sellers over pricing on postage to rip ebay off) plus 10%GST so as from 1st july you sell anything ebay will take 29.9% of sale thanks to Australian government.

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No. the GST only applies to the ebay fees....10% on the FVFs on item and postage.

Any GST on the item cost is handled by the individual seller and only if they are registered for GST.  It has nothing to do with ebay at all.

[domino-710]

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@lyndal1838 wrote:

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@kks-second-hand-treasures wrote:

I spoke  on chat the other day it comes into affect on 1st july 2017, you will now be charged 10% GST on all purchases and if you are a seller you will be charged 9.9% for selling and postage (due to sellers over pricing on postage to rip ebay off) plus 10%GST so as from 1st july you sell anything ebay will take 29.9% of sale thanks to Australian government.

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No. the GST only applies to the ebay fees....10% on the FVFs on item and postage.

Any GST on the item cost is handled by the individual seller and only if they are registered for GST.  It has nothing to do with ebay at all.

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Geez Lyndal - what did I just say.

[kks-second-hand-treasures]

Thanks for letting me know the ATO was no help finally I get it nothing was making sense every one was confusing me thanks again

[lyndal1838]

Sorry domino....I just gave the extra information to clarify why ebay would not be charging the GST on the item cost as that was nothing to do with them.

[billexploited]

Yes its all legit Final Fees at 10% plus gst at 0.90% = 10.9% ill have increase my selling price by an extra 1% percent to cover the fees

[kinetikdigital]

It seems that the link in their email is broken.

This one from live chat worked for both of my seller accounts:

https://signin.ebay.com.au/ws/eBayISAPI.dll?SignIn&UsingSSL=1&pUserId=&co_partnerId=2&siteid=15&ru=h...

[lyndal1838]

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@billexploited wrote:

Yes its all legit Final Fees at 10% plus gst at 0.90% = 10.9% ill have increase my selling price by an extra 1% percent to cover the fees

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GST is 10% not 0.90%

[davewil1964]

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@lyndal1838 wrote:

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@billexploited wrote:

Yes its all legit Final Fees at 10% plus gst at 0.90% = 10.9% ill have increase my selling price by an extra 1% percent to cover the fees

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GST is 10% not 0.90%

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9.9% + 10% = 10.9% (10.89% actually).

[lyndal1838]

Total was right but billexploited had it the wrong way round...I just pointed out that the GST is 10%