Thread: Pings me off!

From eBay,

Are my sales on eBay subject to GST?
The ATO has advised Australians that "private sales by registered or unregistered people, such as at a garage sale, will not be subject to GST". If you are carrying on an enterprise and sell items on eBay, you are responsible for paying any GST applicable to the ATO. As a seller required to pay GST, you must ensure that the GST component is included in the price of the item from the time it is listed and you must not add GST to the final value of an item once it has been won or bought. This means that all listings on eBay are considered to be GST inclusive, where GST is applicable to the transaction. You should also note that sales to overseas buyers (exports) are considered GST free. Where GST is included in the price of an item and your winning bidder or purchaser is overseas, then you may consider refunding the GST component of the item’s final value to the buyer or reduce your postage and handling accordingly, in order to subtract the GST component.
What if I am not required to be registered for GST?
eBay’s GST policy applies to those sellers who are required to be registered for GST, and accordingly, does not apply to those members who are not required to be registered for GST. eBay strongly recommends that you consult with your legal or tax adviser if you are uncertain as to any GST requirements that may apply to you. You might also like to contact the Australian Taxation Office (“ATO”) (www.ato.gov.au) and/or the Australian Competition and Consumer Commission (www.accc.gov.au ).
Can I add an amount for GST on top of the final auction or Buy It Now price?
No. All prices of items are deemed inclusive of GST, where it is applicable to the listing. That is, sellers who are required to charge GST must not add an additional amount on top of the final bidding price or Buy It Now price on account of GST – the price is considered inclusive of GST. It is the seller’s obligation to ensure that they are meeting all obligations with respect to GST. This means sellers who are listing using the auction format and that are required to charge GST will need to set aside 1/11th of the final value for GST purposes.
Why has eBay taken this policy?
eBay has always recommended that sellers include GST in the pricing so as to avoid buyer confusion or misunderstanding. Our policy now requires all item prices to be inclusive of GST where a seller is required to charge GST. We have made this decision after receiving feedback from members who felt confused or disappointed if a seller later charged additional amounts in respect of GST and after liaising with the ACCC, and we have made this policy in the interests of making our marketplace as open and transparent as possible – and this includes pricing. The ACCC is a national law enforcement agency in <?XML:NAMESPACE PREFIX = ST1 /><ST1OUNTRY-REGION w:st="on"><ST1:PLACE w:st="on">Australia</ST1:PLACE></ST1OUNTRY-REGION> which enforces consumer protection and fair trading laws, and promotes competition in the marketplace. Among the areas it administers, the ACCC aims to ensure that consumers are not mislead or deceived as to the final prices and true costs of items, and considers GST-inclusive pricing to be best practice under Australian law.
If I buy an item on eBay is my purchase inclusive of GST?
If you are in Australia and buy an item on eBay, from an Australian seller who is carrying on an enterprise and has an ABN number, then we require that the final price of the item must be inclusive of GST, ie sellers must list their items to include GST in the opening bid amount or in the Buy It Now price. This means sellers who are listing using the auction format and that are required to charge GST will need to set aside 1/11th of the final value for GST purposes. The GST must not be added afterwards by the seller.