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shau's avatar
shau
Experienced Cover User
4 years ago
Solved

GST code for eBay seller fees

Since the Netflix tax was introduced by the government in July 2017, eBay has introduced clause that businesses will be exempt from paying GST on their ebay fees, if they register their business and ABN with eBay. If you’ve done this, you will not pay GST on any of your eBay fees.

Source: https://www.cloudcounting.com.au/myob/to-gst-or-not-to-gst/

 

This being the case, what would the correct GST code be to use for eBay seller fees that have been "exempted" from GST by eBay?  (No GST appears on eBay seller invoices)

  • Julie_A_C's avatar
    Julie_A_C
    4 years ago

    Hi shau Steven_M Tracey_H Jesh_D 

     

    If you have supplied Ebay with your ABN then you could either use Fre or create a new tax code of NT (not tax).

     

    I am not impressed that the ATO would not answer your question for you but not surprised either, they are sometimes very unhelpful.

     

    The MYOB moderators can only point you in the correct direction or to the MYOB guidelines as they are not Registered Tax or BAS agents so it is actually against the law for them to advise on tax codings.

     

     

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  • Julie_A_C's avatar
    Julie_A_C
    Partner
    4 years ago

    Hi shau Steven_M Tracey_H Jesh_D 

     

    If you have supplied Ebay with your ABN then you could either use Fre or create a new tax code of NT (not tax).

     

    I am not impressed that the ATO would not answer your question for you but not surprised either, they are sometimes very unhelpful.

     

    The MYOB moderators can only point you in the correct direction or to the MYOB guidelines as they are not Registered Tax or BAS agents so it is actually against the law for them to advise on tax codings.

     

     

    • shau's avatar
      shau
      Experienced Cover User
      4 years ago
      Julie_A_C wrote:

      Hi shau Steven_M Tracey_H Jesh_D 

       

      If you have supplied Ebay with your ABN then you could either use Fre or create a new tax code of NT (not tax).

      I can't decide between the two: FRE or N-T.  Is one more technically correct than the other in the case of eBay seller fees being GST-"exempt"?  Are there other advantages to coding it one way or the other?

      • Julie_A_C's avatar
        Julie_A_C
        Partner
        4 years ago

        Hi shau 

         

        Not really.  It would be more pertinent now on the Sales side.  It would have also been more when the BAS was the long version but it is now a simplified verson so you don't even record the amount of purchases, just the GST claimed back.

         

  • Jesh_D's avatar
    Jesh_D
    Former Staff
    4 years ago

    Hi shau 

     

    Thank you for your post. 

     

    My recommendation would be to consult your accounting advisor and the ATO for guidance on what GST code to use for eBay seller fees. You can efer to this link when speaking to your accountant, since it outlines in details eBays Taxes and Imports charges.

     

    Please let us know how you get on and if you have any further questions.

    • shau's avatar
      shau
      Experienced Cover User
      4 years ago

      With respect, that link doesn't answer my question.

      I can't afford an accountant so either I get help here or I'm just going to guess or do something at random.

       

      I just need to know, FRE, or N-T or E some other code?

      • Jesh_D's avatar
        Jesh_D
        Former Staff
        4 years ago

        Hi shau 

         

        As I'm not an accountant or tax advisor, I am not permitted to tell you which tax code you need to select. One of the factors that will determine the tax code is whether the invoice needs to be reported on your BAS. If you cannot discuss this with an accountant, I would recommend speaking to the ATO to ensure you are reporting those amounts correctly.