Buyers Premium at auctions. Justified?

robbiegal · November 05, 2013, 06:24:29 PM

are we forgetting that there is a 10% GST tax - both for the seller and the buyer
so 20% of all this goes into Uncle Tony's coffers?
or have I got that wrong?

Fr45h3R · November 05, 2013, 06:32:24 PM

I think the GST is only on the buyers premium.
So 16.5% was actually 15% + 1.5% GST included.
Not sure on the sellers side though.

Fulvio · November 05, 2013, 06:53:34 PM

All of which adds up to why I prefer to source my goodies from the pond or from other collectors like you mob. While middlemen may be a necessary evil, I don't want to be the one to feed them. Much better for the money to go to worthy causes like goldy's holiday or whatever.

wwwww · November 05, 2013, 07:14:15 PM

I disagree with the concept of buyer's premium, always have. A company shouldn't make clients pay for the privilege of buying coins they offer. If they want 40%, they should just bill the vendor 40%, it's more transparent and has the same eventual effect (the vendor pays either way). The only reason to double dip in this way is to trick vendors into believing they're only paying the seller's comm.

oh my florin · November 05, 2013, 07:19:48 PM

Thanks fr45h3r I forgot about that well then the figures quoted for profit can be doubled anyway robbiegal I believe coins are GST exclusive? I don't know about this for sure so don't quote me but I have seen them only charge GST on the buyers premium as fr45h3r said.

robbiegal · November 05, 2013, 07:44:14 PM

I thought that only bullion coins were GST free

markn · November 05, 2013, 08:16:40 PM

GST can be claimable on the price of a coin bought at auction if the vendor of the coin is registered for GST. You sometimes see catalogues with lots marked that are consigned by GST registered sellers. However, you don't pay more for these lots, your bid price INCLUDES the GST the vendor has to pay.

markn · November 05, 2013, 08:17:13 PM

Quote from: 'robbiegal' pid='33530' dateline='1383642854'I thought that only bullion coins were GST free

Any coins can be GST free if the seller is not required to pay GST.

Basil · November 05, 2013, 09:35:37 PM

Yeah,its a jungle,i've never had a problem with Ebay,or Paypal, selling fees,i think they're very fair for the service they provide.I spent half my life buying/selling out of the SMH and sometimes the Courier Mail,and getting those slips in the mail for the weekly insertion fees can be heart stopping.

Edit..whilst on the subject,my Niece is a Journo. and she reckons the Libs. are looking at imposing the GST on Online Internet sales so Ebay buyers could be hit with a 10%(or more if they raise the GST level) tax which would bring Auction houses back into the game.

nealeffendi · November 06, 2013, 12:02:41 PM

Quote from: 'Basil' pid='33538' dateline='1383649537'Yeah,its a jungle,i've never had a problem with Ebay,or Paypal, selling fees,i think they're very fair for the service they provide.I spent half my life buying/selling out of the SMH and sometimes the Courier Mail,and getting those slips in the mail for the weekly insertion fees can be heart stopping.

Edit..whilst on the subject,my Niece is a Journo. and she reckons the Libs. are looking at imposing the GST on Online Internet sales so Ebay buyers could be hit with a 10%(or more if they raise the GST level) tax which would bring Auction houses back into the game.

That will be a mess to sort out. I have made purchases from over 20 countries on eBay.au, eBay.uk, eBay.us etc and most are pre-decimals, so who is liable to pay the GST and on which component? After all the packing and post is done in another country and the product is money and used goods.
Might be easy on new electronic goods etc where things can be compared, but the numi stuff seems like John Hewsons sandwich shop fiasco.

Fulvio · November 06, 2013, 03:21:04 PM

Quote from: 'nealeffendi' pid='33558' dateline='1383701561'That will be a mess to sort out.

Ah for the good old days... when you always knew where you stood. You could recognise them by the masks, they'd point a gun at you and state clearly "Stand and Deliver!".

Now you don't even know who the crooks are, they all wear suits, and you have to wade through piles of legislation and all sorts of rules and regulations, and even then you're not really sure how much you're being robbed for.

JeffH · November 06, 2013, 04:00:39 PM

Quote from: 'Fulvio' pid='33573' dateline='1383713464'they all wear suits

And blue ties.

Sorry, I thought we had drifted into politics.

Basil · November 06, 2013, 04:03:08 PM

They can make it very simple if they wish,all transactions on Ebay Oz.,for eg,the buyer is hit with a 10%(or whatever) tax,the goods or services involved doesn't matter. Getting customs,thru Aust Post,to collect GST on goods coming in from O/S Ebay sites is where it gets messy.

nealeffendi · November 07, 2013, 10:44:25 AM

Quote from: 'Basil' pid='33577' dateline='1383715988'They can make it very simple if they wish,all transactions on Ebay Oz.,for eg,the buyer is hit with a 10%(or whatever) tax,the goods or services involved doesn't matter. Getting customs,thru Aust Post,to collect GST on goods coming in from O/S Ebay sites is where it gets messy.

Um, no.
1 GST is not payable on used goods (like old coins).
2 Not all transactions on eBay.au involve goods shipped from Australia.
3 When I buy old coins and they include "free post" then how is the postage/handling GST computed and who pays it?
4 What about mixed lots? (like buying some old coins with a new item).

markn · November 07, 2013, 03:54:38 PM

Quote from: 'nealeffendi' pid='33616' dateline='1383783265'Um, no.
1 GST is not payable on used goods (like old coins).

Um no. GST is most certainly payable on second hand goods if the seller is registered for GST. The ONLY time this doesn't occur with coins is when the bullion value of the coin and the retail value are largely the same. GST does not apply to bullion.