anyone understand this???????????????
:@
"Netflix tax" effective 1 July 2017
Dear ......
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
Hmmmm. On another forum I am on, the exact same mail came from FedEx.
Considering the Ebay team is talking about a Netflix tax, I'm thinking it's spam/virus/malware
'Netflix' is its nick name,starts July 1,and the GST on imported items('gerry harvey' tax) under A$1000 starts July 1 2018.
Joe Hockey started the ball rolling and the first stage starts July 1 2017 as the Ebay Email states.
https://forums.whirlpool.net.au/forum-replies.cfm?t=2643732
Ahhh Gerry Harvey tax I understand. That cancerous idiot.
Nice that he was able to rebrand it away from himself to a "big bad American".
Poor Gerry really needs the money too. He's down to his last $1.94 billion.
The "hobby' sellers are the ones that this will hit. Business sellers can claim the GST on their purchase price of the items so effective rate is then very small.
This will make eBay and PayPal fees on a sale in excess of 13.6%. But it is only the fees that attract the tax if you are selling physical goods such as coins -at least for now.
If I correctly understand it.
Quote from: 'seedyrom' pid='109558' dateline='1498109506'Ahhh Gerry Harvey tax I understand. That cancerous idiot.
Nice that he was able to rebrand it away from himself to a "big bad American".
His stores killed the smaller outfits because they couldn't compete So as soon as other competition comes in he cry's foul, Screw Harvey Norman I haven't set foot in one of these stores since this tax was started.
Like Jeff said this isn't going to affect the big players anyway Just the little fish like us hobby collectors.
We have already paid our 10% GST when we bought the coins from RAM and now we will get hit again for GST when we sell our collections thanks to that Norman tosser :angel:
Quote from: 'JeffH' pid='109559' dateline='1498110806'This will make eBay and PayPal fees on a sale in excess of 13.6%.
I'm afraid so.
Where would we be without Gerry and his Hardly Normal tax?
In a better place, to be sure.
But don't worry. Amazon is coming, and it will fix him up, along with a few other gougers.
Quote from: 'Fulvio' pid='109575' dateline='1498183902'But don't worry. Amazon is coming, and it will fix him up, along with a few other gougers.
But Amazon will mean all money flows overseas. ...
Amazon and other sellers will be hit with the same tax... including Netflix.
Quote from: 'Ozcoins' pid='109578' dateline='1498187142'But Amazon will mean all money flows overseas. ...
Yeah... and?
We've always been really stupid about sending money offshore. Care to do a stocktake and see just how many retailers are Australian?
http://www.news.com.au/national/netflix-tax-kicks-in-but-range-of-new-taxes-from-july-1-wont-hurt-the-mps-big-pay-rise/news-story/9fadf0567f0e650abf546402a115f4ad
EBay advises "Due to legislative changes taking effect on 1 July 2017, Australian Goods and Services Tax 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 Australian GST in your eBay seller fees."
EBay fees are levied on the total amount paid, including postage. When the seller pays the postage (for Australian delivery) GST applies to that postage cost. EBay has already extracted GST for the postage component of their fee.
Does that mean that some GST is being paid on GST and the Government is actually "double dipping"? Only a very small amount, admittedly, but is does seem to be a double charge as I see it.
QuoteDoes that mean that some GST is being paid on GST and the Government is actually "double dipping"?
The simple answer to that is "Yes"
Quote from: 'JeffH' pid='109633' dateline='1498428112'EBay advises "Due to legislative changes taking effect on 1 July 2017, Australian Goods and Services Tax 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 Australian GST in your eBay seller fees."
EBay fees are levied on the total amount paid, including postage. When the seller pays the postage (for Australian delivery) GST applies to that postage cost. EBay has already extracted GST for the postage component of their fee.
Does that mean that some GST is being paid on GST and the Government is actually "double dipping"? Only a very small amount, admittedly, but is does seem to be a double charge as I see it.
No, although it might look that way. Ebay levies their fees on postage, as well as on the GST on the postage, and the Government levies the GST on Ebay's revenue, which includes Ebay fees. So, it is not the Government that is double-dipping here. Ebay is charging fees of a tax that businesses collect on behalf of the Government. It is no different to the way Mastercard and Visa charge fees on some of your groceries which include GST. There is GST on the credit card fees, which are levied on the price of GST-inclusive groceries.
Quote from: 'JeffH' pid='109559' dateline='1498110806'Poor Gerry really needs the money too. He's down to his last $1.94 billion.
The "hobby' sellers are the ones that this will hit. Business sellers can claim the GST on their purchase price of the items so effective rate is then very small.
This will make eBay and PayPal fees on a sale in excess of 13.6%. But it is only the fees that attract the tax if you are selling physical goods such as coins -at least for now.
If I correctly understand it.
Hobby sellers will be hit, yes, but hobby sellers do not have to pay GST on their gross profit, which businesses do.
Hobbyists paying GST on the Ebay fee is a small price to pay to ensure Ebay pays its fair share on Australian-earned income. Just because Ebay is conveniently located in a tax haven called Switzerland no longer excludes it from avoiding paying the GST. And so it should be.
Eric
eBay is Not "Double Dipping" with this tax charge the Government is.
When a seller buys the postage supplies at the post office He/she is charged 10% GST on them supplies.
eBay then has to charge a further 10% in GST (Harvey Norman Tax) on that same amount for the postage costs that the seller has already paid the GST on at the Post Office for.
In effect the seller is hit for two lots of GST for the one transaction = "Double Dipping" By the Tax Man.
This is the way I see this Bloody Tax working out and a private seller doesn't have the luxury of an ABN number to be able to recoup the GST charged by both the Post office AND eBay on behalf of the Tax Department :dash1:
QuoteHobby sellers will be hit, yes, but hobby sellers do not have to pay GST on their gross profit, which businesses do.
In all seriousness "Hobby Sellers" or collectors very rarely make any "Profit" at all when they sell their collections, The vast majority of collectors normally LOOSE Money when selling their collections :angel:
In reality Dealers do NOT pay the GST because they can claim it back.
Yes they DO have to pay tax on their profits and that is the same as a collector that pays PAYG Tax on His/Her wages or Salary, Same difference really.
Everyone pays Tax on their earnings But This Harvey Norman Tax won't affect the Dealers only the amateur collectors will be hit with it which IMHO is a Bad thing and is something that can only have a detrimental effect as far as recruiting new collectors to the hobby is concerned as this is yet another expense added to the cost of the hobby.
Quote from: 'drakesterling' pid='109647' dateline='1498491180'but hobby sellers do not have to pay GST on their gross profit, which businesses do.
I thought GST is a goods and services tax not a profit tax. Businesses pay GST on their inputs which they deduct from the GST they collect for the govt.
Quote from: 'r9453' pid='109650' dateline='1498498855'Quote from: 'drakesterling' pid='109647' dateline='1498491180'but hobby sellers do not have to pay GST on their gross profit, which businesses do.
I thought GST is a goods and services tax not a profit tax. Businesses pay GST on their inputs which they deduct from the GST they collect for the govt.
GST is a Value Added Tax. It is charged on the Value Added (ie profit) to a product in a production process.
Businesses pay GST on their inputs, which they deduct from the GST they charge on sales and collect from customers. But if they sold the product for a profit, then the amount they claim back is less than the amount they collect. The net amount they send to the tax office in GST is 10% of the profit on the item.
I wrote above that GST is paid on the gross profit. Actually, because the GST paid on inputs can also be claimed back, the net effect is that GST is paid on the net profit not gross profit. My mistake.
But, the net effect on a business in a competitive market is a 10% tax on the net profit of that business. And then a further 27.5 - 30% is taxed away in income tax.
QuoteIn all seriousness "Hobby Sellers" or collectors very rarely make any "Profit" at all when they sell their collections, The vast majority of collectors normally LOOSE Money when selling their collections :angel:
Yes, actually, the taxpayer would not want hobby sellers registering as businesses, because then the hobby sellers could claim back on all their losses!
It is usually BIG Business and very wealthy individuals that finds loopholes and various scams to avoid paying their fair share of Tax.
I have serious doubts that your average coin dealer would be amongst this group and as far as your average collector goes, Well most of us have great difficulty just doing our income tax return let alone working out how to Skimp on the GST.
From my understanding of this new "Netflix" tax it was Harvey Norman that lobbied for it in an attempt to stem the tide of cheaper imported goods competing with the products in his stores via his internet sales competitors.
Yes the internet based companies WILL have to pay the extra 10% for the GST component if they sell via eBay But in reality the effect on these companies sales will be minimal and Harvey Norman has shot himself in the foot with this.
The trouble is the same bullet that went through Harvey's foot has ricocheted into Australian collectors Backs.
The ONLY winner out of all this is the ATO and once again your average collector gets an even bigger wrong end of the pineapple out of the deal.
QuoteThe ONLY winner out of all this is the ATO
That should mean all Australians as the money they collect is for our Government to spend on running the country.
The problem is the Government announces a tax review and "everything is on the table". Then the lobbyists start and things start falling off the table. By the time the review is done all that is left is a bit of fiddling around the edges and that is usually personal income tax. The current system is not effective and needs a comprehensive overhaul.
I believe the reason a limit was originally placed on applying GST to small overseas purchases was that the cost of administering it would be more than the tax collected. So next year when the "Harvey Norman Tax" comes in then the ATO (that is us) will be spending money to benefit Gerry Harvey and his cronies.
They would possibly be better off spending that money to ensure multinational companies pay their fair share of tax on Australian profits rather than making a loss (on paper) by claiming for dodgy "service fees" and interest on intra-company loans.
Some more interesting reading.
http://www.smh.com.au/business/federal-budget/happy-birthday-gst--time-to-grow-up-and-tax-more-food-20170626-gwz2lb.html
Quote from: 'JeffH' pid='109656' dateline='1498524767'QuoteThe ONLY winner out of all this is the ATO
That should mean all Australians as the money they collect is for our Government to spend on running the country.
If you think it is a good thing that the ATO takes extra money from individuals then you are free to send your money to the ATO. Personally I'd rather keep MY hard earned money to spend/give how I choose instead of pollies wasting it on pork barrels, welfare queens and foreign aid to countries that despise us (that billion to Indonesia being an example).
I am with Neil on this :good:
If I can use cash and dodge that Bloody GST which incidentally I and everyone else never voted for I will.
The more money the government can get its hands on the more it wastes and if anyone is going to waste MY money I much prefer that it was Me and not the government :angel:
Quote from: 'trout' pid='109659' dateline='1498561630'I am with Neil on this :good:
If I can use cash and dodge that Bloody GST which incidentally I and everyone else never voted for I will.
The more money the government can get its hands on the more it wastes and if anyone is going to waste MY money I much prefer that it was Me and not the government :angel:
I have to disagree with this illegal behaviour. Illegally avoiding paying at least the bare minimum of taxes that we are required to pay just puts honest businesses at a competitive disadvantage.
If one doesn't like the tax regime in a country, vote for change at the ballot box or become a tax resident elsewhere (which, incidentally, is what a lot of people and companies do).
In the meantime, I'm paying my taxes as required by law (using tax deductions where I can), voting for low taxing political parties like the Lib Dems, and preparing for the day when I am wealthy enough to give one lucky tax jurisdiction the pleasure of taxing me.
Eric
Quotepreparing for the day when I am wealthy enough to give one lucky tax jurisdiction the pleasure of taxing me.
I suggest not The Principality of Hutt River -could raise more problems than it overcomes.
I do agree that everyone should pay a fair share of the costs of operating the country. Pity that many wealthy people and large companies have the wherewithal to avoid doing so.
Quote from: 'drakesterling' pid='109672' dateline='1498625697'Quote from: 'trout' pid='109659' dateline='1498561630'I am with Neil on this :good:
If I can use cash and dodge that Bloody GST which incidentally I and everyone else never voted for I will.
The more money the government can get its hands on the more it wastes and if anyone is going to waste MY money I much prefer that it was Me and not the government :angel:
I have to disagree with this illegal behaviour. Illegally avoiding paying at least the bare minimum of taxes that we are required to pay just puts honest businesses at a competitive disadvantage.
If one doesn't like the tax regime in a country, vote for change at the ballot box or become a tax resident elsewhere (which, incidentally, is what a lot of people and companies do).
In the meantime, I'm paying my taxes as required by law (using tax deductions where I can), voting for low taxing political parties like the Lib Dems, and preparing for the day when I am wealthy enough to give one lucky tax jurisdiction the pleasure of taxing me.
Eric
Lib/dems low taxing?!
"Legally" avoiding paying tax has the same outcome as illegally avoiding paying tax.
The way things are done may be within the letter of the law, but certainly not the spirit.
B'S manipulation of costs happens all day, every day, to claim "Sorry no profits in Australia, so we dont have to pay tax"
They leave off "Thanks for being such a nice, wealthy, stable country that let's all the money go overseas tax free. We are happy to take advantage of all the good things, but contribute nothing"
QuotePity that many wealthy people and large companies have the wherewithal to avoid doing so.
Crikey Mate didn't you know that's what us "Serf's" are here for, You cant expect the top echelon to pay their fair share do you.
If they had to do that then they wouldn't be sending any more cheques the their political parties anymore and the pollies would Hate it if that happened.
QuoteI have to disagree with this illegal behaviour. Illegally avoiding paying at least the bare minimum of taxes that we are required to pay just puts honest businesses at a competitive disadvantage.
I call BS on that Eric, Most of us pay more than a fair share of our income on taxes and we don't have the benefit of claiming any of the GST we pay each and every day.
I am pretty sure that coin dealers don't pay GST on a great deal of their coin purchases when they do a Cash deal so that is NO different than a collector doing the same thing.
QuoteI'm not evading tax in any way shape or form. Of course I'm minimising my tax. If anybody in this country doesn't minimise their tax they want their head read. As a government I can tell you you're not spending it that well that we should be paying extra.
The late Kerry Packer (reluctantly he said) appearing before a parliamentary committee of enquiry.
And so say all of us in respect of the last sentence.
Quote from: 'JeffH' pid='109673' dateline='1498630280'Quotepreparing for the day when I am wealthy enough to give one lucky tax jurisdiction the pleasure of taxing me.
I suggest not The Principality of Hutt River -could raise more problems than it overcomes.
I do agree that everyone should pay a fair share of the costs of operating the country. Pity that many wealthy people and large companies have the wherewithal to avoid doing so.
Considering about a quarter of the country is sponging on welfare I'd say they are not only paying their fair share but are causing the rest of us to pick up their tab.
I remember after one shift about 6 years ago (12 hour shift in a recycling plant, hot and dirty work) getting on a bus and overhearing a conversation a hearing a couple discuss their upcoming trip to Europe, they could only go for 6 weeks before it would affect their pensions (looked to be under 50 and quite healthy). I could of afforded a return ticket to Europe every month back then with my then monthly tax burden. Now my taxes are even higher and I could afford a return ticket every fortnight with my tax bill (I work 70-80 hours/week in construction and security so my overtime is about half taxes). Pity that my last overseas holiday was 20 years ago.:@
Quote from: 'drakesterling' pid='109672' dateline='1498625697'Quote from: 'trout' pid='109659' dateline='1498561630'I am with Neil on this :good:
If I can use cash and dodge that Bloody GST which incidentally I and everyone else never voted for I will.
The more money the government can get its hands on the more it wastes and if anyone is going to waste MY money I much prefer that it was Me and not the government :angel:
I have to disagree with this illegal behaviour. Illegally avoiding paying at least the bare minimum of taxes that we are required to pay just puts honest businesses at a competitive disadvantage.
If one doesn't like the tax regime in a country, vote for change at the ballot box or become a tax resident elsewhere (which, incidentally, is what a lot of people and companies do).
In the meantime, I'm paying my taxes as required by law (using tax deductions where I can), voting for low taxing political parties like the Lib Dems, and preparing for the day when I am wealthy enough to give one lucky tax jurisdiction the pleasure of taxing me.
Eric
Agree Eric I pay my income tax and GST on everything and claim legit tax deductions ... it's the big overseas companies that are ripping off the system,supposably the government is doing something about it www.fairtax.com.au :wavemulticolor:
Quote from: 'Ozcoins' pid='109675' dateline='1498638220'Lib/dems low taxing?!
Hi Ozcoins, I'm referring to the Liberal Democrats not the Liberal Party (or the defunct Democrats).
Quote from: 'drakesterling' pid='109683' dateline='1498649454'Quote from: 'Ozcoins' pid='109675' dateline='1498638220'Lib/dems low taxing?!
Hi Ozcoins, I'm referring to the Liberal Democrats not the Liberal Party (or the defunct Democrats).
https://www.bing.com/videos/search?q=the+popular+peoples+front&view=detail&mid=8AD04DFEC086A9DFF0F98AD04DFEC086A9DFF0F9&FORM=VIRE
Quote from: 'drakesterling' pid='109683' dateline='1498649454'Quote from: 'Ozcoins' pid='109675' dateline='1498638220'Lib/dems low taxing?!
Hi Ozcoins, I'm referring to the Liberal Democrats not the Liberal Party (or the defunct Democrats).
Sorry! My mistake.
They have some interesting ideas, but I don't agree with privatising everything.
Privatising everything will not end well, that's what the Middle Ages had, and the poor could not afford anything, let alone eat.
What's wrong with privatisation ?
When everything eventually turns to Mud after everything is sold off there are 24 million people that they can rely on to pay for that stupidity by raising taxes or inventing new ones, The GST is a perfect example :angel:
I notice eBay has started charging final value fee on sale and final value fee on postage as separate line items. That suggests GST may not apply to the postage component.
I will know tonight once some items I have listed are sold.
I have sold some coins this weekend and there is No GST charges listed on my account activity page.
When GST has been charged isn't it the norm to have it listed separately on your bill?
Anyone know how to Post Gold Coins?,i read on this Forum some time back they're not covered for Insurance by Australia Post. TIA
I noticed the revised account activity page has a note "The above amount includes Australian GST." but I don't yet have a sale in the GST charge period.
What percentages are the amounts for the item and the postage?
I can't recall ever seeing a tax invoice that did not show the GST amount.
The ATO gives requirements for a tax invoice (https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/?anchor=Requirementsoftaxinvoices#Requirementsoftaxinvoices) including "the GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, as a statement such as 'Total price includes GST' ". So it looks as if it is not necessary to itemise it.
Quote from: 'Basil' pid='109806' dateline='1498965457'Anyone know how to Post Gold Coins?,i read on this Forum some time back they're not covered for Insurance by Australia Post. TIA
If you want to send Coins or Bullion using a Postal Service as this is far cheaper than a Courier Service, mark your parcel as 'Industrial Metal'. You can then insure it for it's full value. Do not mention anywhere that it is Coins or Bullion.
Alternatively you can send it using the more expensive Courier Services.
Quote from: 'runway' pid='109818' dateline='1498997513'If you want to send Coins or Bullion using a Postal Service as this is far cheaper than a Courier Service, mark your parcel as 'Industrial Metal'. You can then insure it for it's full value. Do not mention anywhere that it is Coins or Bullion.
Alternatively you can send it using the more expensive Courier Services.
Ok Thanks RW,but what happens if you claim?,i think they ask for exact details of items lost.Courier is probably the go i guess.
Quote from: 'Basil' pid='109826' dateline='1499042308'Quote from: 'runway' pid='109818' dateline='1498997513'If you want to send Coins or Bullion using a Postal Service as this is far cheaper than a Courier Service, mark your parcel as 'Industrial Metal'. You can then insure it for it's full value. Do not mention anywhere that it is Coins or Bullion.
Alternatively you can send it using the more expensive Courier Services.
Ok Thanks RW,but what happens if you claim?,i think they ask for exact details of items lost.Courier is probably the go i guess.
No idea I haven't tested that theory, I'm still amazed how Perth Mint and RAM use Australia Post and get insured ,secret squirrel stuff :dodgy: