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.

[davewil1964]

True.

And, as usual, eBay is rounding up.

[lyndal1838]

Yes, and I suspect that all those fractions of cents will add up to a nice little sum of money for ebay.  You can be sure they will only send the correct number of $ to the ATO.  Rounding up can be very profitable.

However, I am not sure that they are correct in building the GST into their fees.

It is supposed to be added as a separate entry on the invoice.

[davewil1964]

My understanding is that prices are supposed to be GST inclusive, with the amount of GST noted as a separate line item. That's certainly what happens with my fuel or Woolies receipts.

Which means their store charges are in breach of the law.

[lyndal1838]

Yes, I also have reservations about the way they are doing it but I will never see it anyway as I am not a seller.

[angusk97]

The bill regarding this tax has been delayed 12 months, at least. I guess this means that this extra 10% won't be happening until at least July 2018 then?

[lyndal1838]

The GST on ebay fees has not been delayed....it goes ahead on 1st July as advertised.

The tax that has been delayed is the import charges and GST on ALL overseas purchases and not just on imports over $1000.

[go-tazz]

They now have an updated Email with: frequently asked questions.

Which should answer most questions asked on the boards and give a better explanation as to how/what

is and isn't affected.

[lyndal1838]

Well that seems very comprehensive and straight forward Tazz.

I wonder how long before people start reading the wrong information into it and come here screaming.

[rivkaha123]

If you're already registered for gst with ur abn most likely u r already paying gst (balance owing may arise when u complete ur tax return) so eBay prob not wanting to double up paying gst twice? ...

[kopenhagen5]

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@davewil1964 wrote:

My understanding is that prices are supposed to be GST inclusive, with the amount of GST noted as a separate line item. That's certainly what happens with my fuel or Woolies receipts.

Which means their store charges are in breach of the law.

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eBay will either need to change their price list or pick up the tab.