Ebay Netflix Tax Now Impossed On All Australian Ebay Sellers

How can they make small ebay Oz sellers who are GST exempt pay GST now? I think this is not really GST at all, but a separate kind of tax the Government made up to ensure online sales are less competitive, at least on ebay.

Received message from ebay effective 1st July 2017 10% GST to be charged on all fees???

Now if your an Australian seller in the stamps cat you are exempt from Goods and services tax if you earn under $75,000. This is tax office rules. But now you get GST charged by ebay on your ebay fees??

We pay enough in fees. This hurts sellers profits. Is it worth selling on ebay Australia anymore with an extra 10% tax added every month?

I'd like to hear from other Australian sellers on this if they are in the same boat what do they plan to do? Take the tax and absorb it? Add 10% to buyers? Sell on another country ebay site? Thoughts?

Duncan, I posted the Netflix tax yesterday on my Australia thread.
It has been delayed until 1st July 2018

I am not sure how / if it will affect me, I'd suggest it will, the net result, will be no more purchases from North America (My main source)

I was sitting on the fence, importing 8Kg of Hawid Mounts
the 10% would have killed my purchase.

With the exchange rates, postage rates, and 10% impost, it will be too much of a gap to compete with local prices, albeit our choice will be diminished.
Fortunately, personally, I have bought enough stock, to keep me collecting for the next few years, without buying anything.

If I have it correct, it is a 10% impost on online purchases below $1,000
I will stand corrected.

Apparently Harvey Norman will be satisfied.


Example:
Yesterday I bought from a US ( dealer stock) , 1000 Mongolia Stamps (CTO)

Cost me $2

Landed here with shipping, exchange rate and 10% GST would be $8

Rod it is not delayed according to ebay starts 1st July 2017. If we close oz ebay shop an open one oversees are we okay? Here's ebays message. 10% would have killed your purchase and I am sure its going to kill sales to. If we pay 20% to sell we might as well send stuff to auction houses?

"Netflix tax" effective 1 July 2017

You might have seen our recent email about changes to Australian tax legislation (the "Netflix" tax) which will impact fees on ebay. We want to provide you with some further details about this change and how it may affect you.

This legislative change imposes Goods and Services Tax (GST) on digitally delivered services offered to Australian based consumers by non-resident suppliers, starting 1 July 2017. This includes the ebay service.

If you're a private seller:

GST of 10% will be applied to your fees and will be shown on your monthly invoice. We recommend you familiarise yourself with our updated rate card ahead of this change.

If you're a business seller:

If you have a valid Australian Business Number (ABN) and are registered for GST, you can get an exemption by registering your ABN with ebay here (make sure you enter your ABN with no spaces). No GST will be applied to your fees.

To help you understand this change, see our updated rate card and our frequently asked questions.

Regards,
The ebay Team

The way you explain , the taxes are on fees and they are ebay income . Not sellers incomes I guess they do more than 75k

area 66 nope this is a ebay fee tax added to already fees paid by sellers effects all sellers here on low ball sales under $1000. The Goft is taxing ebay and any digital online provider 10%. ebay is forcing all sellers to pay the 10% on their fees regardless of how much they earn. Bad news for hobby sellers in this country who have been able to sell low level tax free up till now.

Hi Duncan.

This new tax that has been put off till a later date I believe is not aimed at the seller but at the buyer of an import item/items.

If the seller buys their stock from outside Australia that purchase will attract the new tax if it ever becomes into being which I now believe will not happen.

If you were trying to get around the tax by being an ebay store outside Australia ebay will tax you if the tax man does not have you for dinner 1st.

To have this tax put on hold is amazing.

Duncan, Rod

Hasn't ebay an Australian operation, or do the rules refer to the digital provider's country of origin? It, like Amazon, is usually highly adept at avoiding the imposition of taxes, except in the Bahamas.

Hi KGV ebay is non resident they are a foreign company tax applies according to them from 1st next month so not put off. The Goft is taxing ebay 10% so ebay are making the sellers pay the 10% of their overall fees

GST of 10% will be applied to your fees and will be shown on your monthly invoice.

UNFAIR ebay should pay the tax not the sellers!

I means the taxes are charge on the fees .it's the fees that are ebay income not the taxes, of course the taxes are Gouvernement the income.

Hi Geoff,


I believe so, possibly just a licence.
I am still a tad confused, I'll see my accountant first, before I get excited.
I have only bought 287 items from ebay in 12 years, so that is not a major concern.
It how it effects my other purchases from overseas.

As far as I am concerned, the Govt has delayed the tax imposition till 1 July 2018
so I cannot see a second party taking tax out prior to that.

This quote is bit false... This thing applies only to vendors whose turnover to Australian consumers is over 75,000$. Most of the small- and medium sized business remains totally unaffected by it (the cost of bureaucracy would likely outweight any gain)

So if for example Rod buys 1kg of mounts from some US stamp dealer website, and the dealer does not have much sales to Australian customers (less than $75k a year), then nothing changes compared to current situation. No GST is applied.

But if he buys those same hinges from the same dealer using ebay, then 10% GST gets applied as the sales of ebay exceed 75k.


-k-

I guess I am confused... I thought that all companies passed on costs to customers in one form or another. If ebay is required to pay a taxes to a specific country is there some reason that this should not be passed on? What am I missing?
Don

Thanks John,
for those links, makes it a lot clearer.
If scb is right, then there is not a great deal to worry about.
I don't import digital, and my purchases are from a low level dealer,
I couldn't understand how the tax would be levied, seems I am not the only one.

That's my (admittedly lay) interpretation as well. If there's any party to be angered with, it's the Australian government, not ebay.

So why did ebay email me saying GST of 10% will be applied to my fees and will be shown on your monthly invoice? This will be added fees to pay per what I sell not what I buy. This whole thing is confusing and some sellers told its deferred till 2018?