Netflix Tax Australian sellers

Hello Sellers,

 

I would like to start this thread for sellers that now can not make a profit due to the Netflix tax.

 

Starting with the double GST hit when fees are charged on postage costs.

 

Example: final value fee includes postage charge gst paid via fees.

                then item is posted GST charged again with postage at Austpost counter for example.

 

I feel that both ebay and the govt are at fault for not considering this simple outcome of the Netflix tax.

 

Further the items that i sell on Ebay are second hand items therefore the GST has already been paid at time of original purchase.

 

The fees that I pay Ebay are for the sale of second hand goods on an web based billboard.

 

I therefore believe that A flat rate should be charged yearly for the use of billboard space.

 

This would meen no selling fees at all just a once a year charge GST included.

 

The fees system now has so many hands in the pie nothing is left for the seller.

 

The Netflix tax is anti competative international sellers selling under $1000 now have an edge an Australia again.

 

Our postage costs are huge fees are now massive.

 

I am not in the business of giving items away.

 

I will close by saying all my listings have been removed from Ebay until this is all sorted.

 

Your thoughts would be welcome.

Message 1 of 11
Latest reply
1 ACCEPTED SOLUTION

Accepted Solutions

Netflix Tax Australian sellers

This explains what it is and how it applies.

 

http://sellercentre.ebay.com.au/content/gst-fees-ebaycomau

 

 

The updated rates table shows who is charged and at what percentage:

 

http://sellercentre.ebay.com.au/sites/default/files/complete_fee_table_AU_0717.pdf

View solution in original post

Message 7 of 11
Latest reply
10 REPLIES 10

Netflix Tax Australian sellers

This issue has been thrashed to death on numerous threads, the most of which indicates people do not fully understand the "Netflix Tax"

 

a) it is charged on the FVF ONLY

b) it is not charged on the postage amount.

c) it is not charged on the value of the goods being sold.

 

So, if you sell and item for (say) $50 and your FVF is $5.00, then the "NetFlix Tax" of 10% will be just 50c.

 

If you "cannot make a profit" because you are going pay GST of just $0.50 on a $50 sale then  you need to revisit your pricing structure!!!

Message 2 of 11
Latest reply

Netflix Tax Australian sellers

The tax is so multinationals dont evade their tax obligations with Australia.

 

Maybe Ebay should look at their pricing structure.

 

Why do I have to pay their tax they havent been paying for years.

Message 3 of 11
Latest reply

Netflix Tax Australian sellers

You are paying GST on eBay's Australian sales (fees). Just like you do to any other business with a turnover of over $75k. You should be thankful that you haven't been paying for the last 17 years - when eBay SHOULD have started paying GST.

 

You can always wait for Amazon. I believe their fees are 20%, plus GST from Saturday.

 

Given your extremely low level of sales, I can't see how it impacts you that badly.

Message 4 of 11
Latest reply

Netflix Tax Australian sellers

lyndal1838
Honored Contributor

@strawberry-wireless wrote:

Hello Sellers,

 

I would like to start this thread for sellers that now can not make a profit due to the Netflix tax.

 

Starting with the double GST hit when fees are charged on postage costs.

 

Example: final value fee includes postage charge gst paid via fees.

                then item is posted GST charged again with postage at Austpost counter for example.

 

I feel that both ebay and the govt are at fault for not considering this simple outcome of the Netflix tax.

 

Further the items that i sell on Ebay are second hand items therefore the GST has already been paid at time of original purchase.

 

The fees that I pay Ebay are for the sale of second hand goods on an web based billboard.

 

I therefore believe that A flat rate should be charged yearly for the use of billboard space.

 

This would meen no selling fees at all just a once a year charge GST included.

 

The fees system now has so many hands in the pie nothing is left for the seller.

 

The Netflix tax is anti competative international sellers selling under $1000 now have an edge an Australia again.

 

Our postage costs are huge fees are now massive.

 

I am not in the business of giving items away.

 

I will close by saying all my listings have been removed from Ebay until this is all sorted.

 

Your thoughts would be welcome.


Aaaarrrrgggghhhhhh!

Maybe you should have read the numerous threads that have already been started about this subject.

You might just have some understanding of the subject by the time you have read them all, because this thread shows that you have no understanding at all.

 

What a waste of time removing all your listings.....it has already been sorted and you will be paying GST on your ebay fees from 1st July.

Message 5 of 11
Latest reply

Netflix Tax Australian sellers

Ok so what you are all saying is to not offer free postage as it will go onto my fnv.

 

So why does ebay bother having the free postage option and witrhout a disclaimer.

 

Also if I remove free postage I get punnished via dsr very odd.

 

You still have not explained why the tax isnt paid by ebay it is the sellers cost.

 

I dont sell many items I am not a multinational so why does this tax apply to me.

 

AAAAARGGGGH is not and answer either have some green tea or something.

 

 

Message 6 of 11
Latest reply

Netflix Tax Australian sellers

This explains what it is and how it applies.

 

http://sellercentre.ebay.com.au/content/gst-fees-ebaycomau

 

 

The updated rates table shows who is charged and at what percentage:

 

http://sellercentre.ebay.com.au/sites/default/files/complete_fee_table_AU_0717.pdf

Message 7 of 11
Latest reply

Netflix Tax Australian sellers

Thankyou Go-tazz

 

Someone with some solid info.

 

Cheers

Message 8 of 11
Latest reply

Netflix Tax Australian sellers


@strawberry-wireless wrote:

Ok so what you are all saying is to not offer free postage as it will go onto my fnv.

 

So why does ebay bother having the free postage option and witrhout a disclaimer.

 

Also if I remove free postage I get punnished via dsr very odd.

 

You still have not explained why the tax isnt paid by ebay it is the sellers cost.

 

I dont sell many items I am not a multinational so why does this tax apply to me.

 

AAAAARGGGGH is not and answer either have some green tea or something.

 

 


Plenty of people don't do 'free postage' and have 5's for their postage DSRs.

 

The tax applies to you because it's you that's using ebay's service.  Any service provided in Australia by someone who makes over a certain dollar amount has to add the GST on to their own charge and then the customer is charged the total amount.  As an example, my mechanic charges me $80 an hour for his labour but then he has to add $8 an hour for the GST that he passes on to the govt, so the total amount I pay is $88.  It's not the mechanic's tax, it's a consumer tax that I pay.  

 

In the same way, ebay charge consumers (you and me) 9.9% for their service and then they add 10% on for the GST.  It's not ebay's tax - it's a tax on all consumers.  Have a look at your docket next time you go shopping - down the bottom will be an asterisk with a dollar amount beside it showing the amount of gst that goes to the govt.

 

Do yourself a favour and read the thread in the seller's forum instead of expecting everyone to repeat what they've repeated umpteen times already, and please don't lead others astray by starting posts on subjects you know nothing about.

Message 9 of 11
Latest reply

Netflix Tax Australian sellers

I seem to be being charged on postage amounts in my acount from July 1st as well

Message 10 of 11
Latest reply