Due to government enacted legislation, from 1 July 2000 items bought and sold by Australians may be subject to a goods and services tax ("GST").
eBay strongly suggests that members contact the Australian Taxation Office ("ATO") or their taxation advisor for information on the GST.
The Australian Taxation Office can be contacted at the following address: www.ato.gov.au
The following is provided for information purposes only. If you require advice in relation to GST issues, eBay strongly advises you to seek the services of a tax or accounting professional. 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).
Frequently Asked Questions (FAQs)
If I buy and sell on eBay do I need to be registered for the GST?
If you are not carrying on an "enterprise" - as defined in the legislation - you do not need to register for GST. If you are carrying on an enterprise and your annual turnover exceeds AU$75,000, the legislation requires that you register for GST. The definition of an “enterprise” covers commercial activities but does not include hobbies. To register for the GST you need to complete an application, which is available from the ATO. This can be done electronically at www.business.gov.au
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 Australia 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.
Does this policy apply to auction listings?
Yes, the policy change 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 at the end of the auction by the seller.
What is eBay's ABN number?
The rights and services available at www.ebay.com.au are provided by eBay International AG, located at Helvetiastrasse 15/17, CH-3005, Bern , Switzerland . As a foreign entity, eBay International AG is not required to be registered for GST and therefore does not have an ABN number.
If I am carrying on an enterprise, how do I get a tax invoice to claim input tax credits for my purchases on eBay?
Contact the seller and request a tax invoice if GST is included in the purchase price of the item purchased.
What should I do if a seller tries to add GST to the final sale price of my item?
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.
Listings that violate eBay's policies may result in disciplinary action, as described below. Report a policy violation:
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Include the appropriate information, including any relevant emails, with full descriptions in the subject line and complete email headers. Learn more about displaying complete
headers for your email program.
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Only report a case once—multiple emails about the same case slow an investigation.
Please be aware that, due to privacy considerations, it is not possible for eBay to discuss the results of an investigation concerning another member.
What are the potential eBay consequences for failing to comply with the GST policy?
Listings that violate eBay' s policies may result in disciplinary action. This action may include a formal warning, the ending of all violating listings, or even temporary or indefinite suspension of a user' s account. eBay will consider the circumstances of an alleged policy violation and the user' s trading records before taking action. If a complaint cannot be proven, we may take no action. In most cases, eBay will credit all associated fees when a listing is ended.
In addition, as a condition of your membership of eBay, you are responsible for ensuring that you comply with all laws. Failure to comply with eBay’s GST policy may lead to legal and/or tax consequences under applicable legislation. eBay recommends that you consult with a legal or tax adviser if you are uncertain about any GST requirements that may apply to you.
Does this policy apply if I trade on other eBay sites?
Although this policy applies to www.ebay.com.au, the ACCC has indicated that it is best practice for all Australian traders to be advertising GST inclusive prices - online or offline. GST-exclusive pricing may constitute misleading and deceptive conduct, which in turn can lead to legal liability for you as a seller. eBay encourages you to check with a legal adviser and/or the ACCC directly to ensure your trading practices (including through any other eBay sites) are legally compliant: www.accc.gov.au.
How does this apply to final value fees?
Final value fees will continue to be charged on the final price of the item (inclusive of GST), which is similar to other companies that charge percentage-based fees on GST inclusive prices (such as credit card companies for department store purchases). That is, the calculation of the eBay final value fee for all transactions (including overseas transactions) is based on a GST inclusive price. In some instances a seller will refund part of the final price to an overseas buyer because GST may not be applicable to the sale. In such a case the final value fee is still calculated on a GST inclusive basis. This is because it is not possible for eBay to know whether the final price charged for the item has subsequently had any component refunded by the seller.
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