What's the change?
From 1 July 2017, Goods and Services Tax (GST) will apply to all digitally delivered products and services (such as the eBay platform) due to new legislation in Australia (you may have heard of this called the "Netflix Tax"). This includes fees on eBay.
If you run a business on eBay and are register for GST, you won’t be affected by this change if you register your ABN number with eBay here.
I have a Business but I only use eBay to buy or sell privately, do I need to fill in the number?
You should only fill out the number if you are using your eBay account for your business. If you only use your eBay account to buy or sell personally, you should not register your ABN with us. You will need to pay the GST on your fees.
What if I use it for both?
Please refer to your tax advisor or the ATO website.
When does it come into effect?
The new legislation starts from 1 July 2017.
Why is eBay making this change?
The change has been introduced by the Australian government, which eBay needs to comply with. Under this new legislation GST will be due on all digitally delivered products and services, including the eBay service.
Who does that change affect?
This change will mainly affect consumers selling on eBay. If you use eBay for your business and are registered for GST, you won’t be affected by this change if you register your ABN with eBay here.
Where can I learn more about the legislation change?
You can read more about the legislation change here.
What happens if I don't apply for an exemption?
If you don't register your ABN, GST will be charged on your fees on eBay, from 1 July 2017. If you have an ABN you can contact the ATO regarding tax credits. You can register your number any time on eBay and from that time going forward you should be eligible for the exemption.
I don't have an ABN. How do I find out if I'm eligible or apply for an ABN?
To find out if you're eligible for an ABN or to apply visit the Australian Business Register website.
Is this different to the issue I've seen in the media around eBay, marketplaces, and the GST low value threshold?
The GST issue you might have seen in the news is about GST on items purchased from sellers overseas. This is not yet law in Australia. That issue is very different to this change, which is simply about GST on the services eBay provide. In other words, this new tax (you might have heard referred to as “Netflix Tax”) relates to collecting tax on eBay’s own services.
Is this a fee change?
This is not a fee change. This is due to new legislation introducing GST on digital goods and services from an overseas supplier.
What do I need to do?
I've just registered my ABN with eBay, do I need to do anything else?
No, once you've registered your ABN, you should be exempt from GST on your fees. You're not required to take any further action.
How will this look on my invoice?
If you've registered your ABN, you’ll be exempt from GST and it won't appear on your invoice.
If you haven't registered your ABN or you're not eligible for an ABN, GST will appear as a separate item on your invoice.
Does this apply to Promoted Listings fees, Store subscription fees or any other eBay fees?
Yes, all fees on eBay will attract GST unless you're exempt and provide your ABN to eBay here.
I have an ABN but am not registered for GST. How do I remove my ABN from my account?
Sellers who wish to remove their ABN will need to contact Customer Service to do so. If you wish to add an ABN to your account, you can do so when you're see in the Seller Account setup.
How do I add my ABN to my account?
If you wish to add an ABN to your account, you can do so when you're setting up your Seller Account.