eBay Australia: Iimportant Clarification for Australian eBay Sellers Registered for the GST

eBay sellers in Australia must comply with the eBay Australia's new policy regarding taxes. Businesses with an annual turnover rate exceeding AU$50,000 are required to register for the government's Goods and Services Tax (GST). eBay is requiring all eBay Au sellers registered for and paying the GST, to include the tax in the price of the item from the time it is listed. Here is the announcement:

This is an important clarification to our announcement today regarding changes to eBay’s GST Policy.

PLEASE READ CAREFULLY.

eBay announced today a change to its GST Policy, under which sellers must include GST in their item prices and not add GST on top of the final price of an item.

Our announcement incorrectly stated that the policy change would become effective 24 May 2005. The date that the policy change actually comes into effect is Monday, 13 June 2005 (that is, three weeks from today). We sincerely apologise for any inconvenience.

Below is a copy of the corrected announcement.

This GST policy only 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. If you are a seller who is required to be registered for and pay GST, you must ensure that the GST component is included in the price of the item from the time it is listed. You must not add GST on top of the final bidding price or Buy It Now price once your item 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. It is the seller’s obligation to ensure that they are meeting all obligations with respect to GST.

We are aware that many sellers required to be registered for GST already include GST in their prices, in accordance with eBay’s previous recommendations.

eBay’s GST policy now requires this as a compulsory condition of listing. We have made this change after liaising with the Australian Competition and Consumer Commission (ACCC) and receiving member feedback.

This means sellers who are listing on eBay from 13 June 2005 and that are required to charge GST will need to set aside 10% of the final value for GST purposes. The 10% must not be added afterwards by the seller.

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 located overseas, 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 from the final value.

For more information, please refer to eBay’s GST policy or contact Customer Support via the online webform.

You may also wish to visit the websites of the ACCC and the Australian Taxation Office.

Regards,
The eBay Team

http://www2.ebay.com/aw/au/200505.shtml#2005-05-23120216