"Netflix tax" effective 1 July 2017

robbiegal · June 22, 2017, 02:01:16 PM

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

seedyrom · June 22, 2017, 02:43:31 PM

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

Basil · June 22, 2017, 02:47:10 PM

'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

seedyrom · June 22, 2017, 03:01:46 PM

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".

JeffH · June 22, 2017, 03:23:26 PM

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.

trout · June 22, 2017, 05:32:57 PM

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:

r9453 · June 23, 2017, 06:04:11 AM

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.

Fulvio · June 23, 2017, 11:41:42 AM

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.

Ozcoins · June 23, 2017, 12:35:42 PM

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. ...

ausproofs · June 23, 2017, 04:22:53 PM

Amazon and other sellers will be hit with the same tax... including Netflix.

Fulvio · June 23, 2017, 08:50:08 PM

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?

ausproofs · June 25, 2017, 04:43:12 AM

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

JeffH · June 26, 2017, 07:31:52 AM

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.

trout · June 26, 2017, 07:34:32 AM

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"

drakesterling · June 27, 2017, 01:03:00 AM

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