Do eBay Final Value Fees (FVF) Attract The GST?

I recently sold two items on eBay, a fairly rare event for me. They were both listed during an eBay $1.00 FVF promotion, so I was surprised to be charged 2 x $1.10 instead of just 2 x $1.00 It's not so much the extra 2 x 10c that concerns me; it's how eBay calculated those two $1.10 final value fees.

I contacted eBay and their reply was hesitant and it didn't sound like the eBay agent was very sure of themselves:

"Hello Peter,

Thanks for contacting us about your concern.

I understand this is something to do with the $1.10 charge calculation when the items are under the $1 promotion (fvf). Honestly Peter, it became $1.10 because GST for the items are not covered by the promotion. That weekend promotion is only applicable for final value fee, not for GST.

If you have questions, please let us know.

Thanks for using eBay. Take care, Peter!

Kind regards,
Charlaine I.
eBay Customer Service"

Can somebody who is familiar with eBay and how their fees interact with Australian tax law please explain?

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Comments

  • -4

    I love value added taxes - provided business is paying it.

    The tax is of course terribly unfair to businesses earning billions of dollars per year through millions of transactions. But that's a lot better than every person in Australia paying it regardless of their income which is breathtakingly unfair.

  • +1

    eBay is required to collect GST on the fees.

  • +1

    Not really sure what is so hard to understand?
    The eBay fee is $1.00 and they are required to collect 10% GST on any Goods or SERVICES they provide. Hence they charge, and remit to the ATO 10c on the $1.00 FVF.

  • +2

    If you are registered for GST and provide your ABN to ebay, then the fees are 'exGST' and you get charged $1. But if you haven't provided this info, ebay by law has to collect GST, so its added on.

    What you got charged is correct.

    Australian tax law please explain?

    If you sells things in Australia it must have GST.

    The only law eBay could be breaking is displaying a price not including GST in the final price……

    https://www.business.gov.au/products-and-services/fair-tradiā€¦

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