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GST for Australian Sellers

From 1 July 2017, Goods and Services Tax (GST) will apply to fees on eBay, due to new legislation in Australia (the "Netflix Tax").

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What's the Change?

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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.
 
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Frequently Asked Questions

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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.

 
If I list on other eBay sites, will GST be added to those fees? 
 
Australian GST will become payable on your eBay fees if you reside or have your primary place of business in Australia. Regardless of the eBay website you use for listing or selling your items, if your registration details show that you are based in Australia, eBay will include GST in your eBay seller fees. 

 

Does this apply to Australia Post postage labels?
 
Australia Post labels already include GST so there will be no change to the cost of these labels. the cost on your invoice may appear different to what you're used to as GST will now appear as a separate item.  
 
 
I use ParcelPoint returns labels. How will this impact the cost of that service?
 
As ParcelPoint returns labels are a product provided by ParcelPoint and simply facilitated by eBay through the platform, the price of this already includes GST. There will be no change to the cost of these labels. The cost will appear on your invoice with GST as a separate item.  
 

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 and can't register for GST exemption. If I currently pay 9.9% in final value fees, what will this amount be from 1 July?
 
Due to this legislative change, if you are not eligible to register for GST exemption then GST will be applied to your fees on eBay. This means a final value fee of 9.9% will increase to 10.89% unless you're a business seller and register your GST registered ABN with eBay.
 
For example:
If you sell an item for $100.00  with free postage you will currently pay $9.90 in final value fees.
From 1 July, if you sell an item for $100.00 with free postage, you will pay $10.89 in final value fees.

 

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?

  • If you are a consumer and do not use eBay for business then you do not need to do anything. You will be charged GST on your fees from 1 July 2017.
  • If you run a business on eBay and are registered for GST, register your ABN here and you won’t be affected by this change.
  • If you're not sure whether you're eligible for an ABN or to apply visit the Australian Business Register website. If you apply for an ABN because you run a business on eBay, register the number here and you won’t be affected by this change. 
  • If you are not eligible for an ABN, GST will be applied to your fees on eBay

 

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.

 

I tried to register my ABN and got an error message. What does this mean?
 
When you register your ABN with eBay on this page, make sure you remove all spaces in the number. This should prevent any errors and allow you to successfully register your ABN. 
 
Where can I see my ABN in my eBay account?
 
If you registered your ABN with eBay, you will find it at the top of the Seller Account page.
 

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.

 

I don't have an ABN and can't register for GST exemption. When will I start to see GST applied to my invoices?
 
If you don't have an ABN and can't register for GST exemption, GST will be applied to your fees from 1 July 2017 and will appear on any invoices you receive after this date. 

 

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 sell tangible  products on eBay, not digital items. Will this change impact me?
 
This new legislation relates to tax on eBay's own services and not the items sold on the eBay platform by our sellers. 
 
Regardless of what you sell on eBay, from 1 July 2017, GST of 10 per cent will apply to all fees on eBay for individual (non-business registered) customers of eBay. If you have registered your ABN with eBay you will be exempt. You can register your ABN here.  
 
 
I have an ABN but am not registered for GST. How will this change impact me?
 
You should only register your ABN with eBay for GST exemption on your eBay fees if you're registered for GST. If you're unsure of your situation we recommend you get in touch with your tax advisor or the ATO. 

 

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.

 
I run a charity business. How will this change impact me?
 
As with all business sellers, you'll need to register your ABN with eBay here to receive the GST exemption.  
 
 
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