I dont use Paypal for listings of a high dollar value due to the high fees compared to my banks credit card merchant rate.

My discussion point is this and relates to providing a tax invoice to customers.

If I sell an item for $1100 ($1000 plus $100 GST) and the customer pay via Paypal I am likely to receive $1071.05 This amount has a GST component of $97.37

So when I issue a TAX invoice for $1100 on paper I have collected $100 GST but in reality it is only $1097.37 that I have been paid with a GST component of $97.37

Paypal do not issue me with a tax invoice for their fees so where is the $2.63 shortfall going ?

When I do my BAS I say that I collected $97.37

The customer is expecting a tax invoice that says he or she paid $100 GST.

Therefore when the buyer claims $100 as a GST credit meaning the Australian Government $2.63 out of pocket.

Do Paypal submit a BAS and pay GST and taxes ?

They should !

Does anyone want to comment ?