GST code for eBay seller fees

This thread is now closed to new comments.
Some of the links and information provided in this thread may no longer be available or relevant.
If you have a question please start a new post.
shau
Experienced Cover User
64 Posts
Experienced Cover User
Experienced Cover User

64Posts

0Kudos

0Solutions

Solved: Go to Solution

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)

10 REPLIES 10
Jesh_D
1,447 Posts
Former Staff
Former Staff

1,447Posts

0Kudos

133Solutions

Re: GST code for eBay seller fees

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.

Kind regards,
Jesh

MYOB Community Support

shau
Experienced Cover User
64 Posts
Experienced Cover User
Experienced Cover User

64Posts

0Kudos

0Solutions

Re: GST code for eBay seller fees

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
1,447 Posts
Former Staff
Former Staff

1,447Posts

0Kudos

133Solutions

Re: GST code for eBay seller fees

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.

Kind regards,
Jesh

MYOB Community Support

shau
Experienced Cover User
64 Posts
Experienced Cover User
Experienced Cover User

64Posts

0Kudos

0Solutions

Re: GST code for eBay seller fees

@Jesh_D Then don't tell me if you're not qualified, but there are plenty of accountants on here that can answer a harmless question to help out a little guy who doesn't have the resources.

 

It's infuriating because I just called the ATO and they rejected my question and now you're directing me back to them.

Tracey_H
12,172 Posts
Former Staff
Former Staff

12,172Posts

0Kudos

1,836Solutions

Re: GST code for eBay seller fees

Hi @shau 

 

I understand that you're frustrated, but unfortunately, as mentioned by @Jesh_D , we're not permitted by law to give tax or accounting advice. Maybe you could try the ATO Community forum: atocommunity

 

Hopefully one of our users will be able to offer assistance. If you do need help with your software, please do let us know as we are happy to help.

Cheers,
Tracey
Previously @bungy15

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

Did my answer help?

Mark it as a SolutionHelpful? Leave a to tell others

shau
Experienced Cover User
64 Posts
Experienced Cover User
Experienced Cover User

64Posts

0Kudos

0Solutions

Re: GST code for eBay seller fees

@Tracey_H That forum is useless, the responses unhelpful, and does more harm than good by wasting critical time.  Guess I'll just have to wing it, cause nobody will help.

Steven_M
45,180 Posts
Former Staff
New Zealand
Former Staff

45,180Posts

0Kudos

6,759Solutions

Re: GST code for eBay seller fees

Hi @shau 

 

This particular Community Forum is aimed at supporting the MYOB products. For example, what process should be used to allocate a bank transactionI am encountering an error with my software... While this Community Forum is visited by external accountants, bookkeepers and Partners that do provide advice from time to time on client financial enquires, we do recommend that users do seek their own financial advice from someone that has a more widespread concept of your accounts, financial situation, environment and structure, such as Accountant or another advisor. Financial advice ranging from what tax code/account a user should on a transaction to what is the best way to account for this type of transaction.


The MYOB Moderator team do provide general advice relating to the software. For example, with regards to your enquiry, AccountRight has a series of default zero-rated tax codes:

 

  • FRE – for sales/purchases where the current rate of GST is NIL eg. basic food items, health services, etc.
  • N-T or NTR – Used to record sales that carry no GST, such as depreciation and cash transfers.

Help Article: Summary of tax codes does provide a summary of the default tax codes in AccountRight.

 

As has been indicated, if a user is unsure what tax code to be used on a transaction it is recommended that the user does contact their financial advisor/accountant to provide that information. If you don't have access to an accountant there may be free services available to yourself that you could access, I would check out to see if there are any business advisor services in your area.

 

Once you have obtained what tax code, amounts and accounts required for that transaction, if you are still needing assistance with actually entering that transaction into your AccountRight software do let us know we would be happy to offer our assistance on that topic.

Kind regards,
Steven

MYOB Community Support

Online Help| Forum Search| My Account

Julie_A_C
Partner
3,363 Posts
Partner
Australia
Partner

3,363Posts

503Kudos

522Solutions

Accepted Solution Solved

Re: GST code for eBay seller fees

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.

 

 

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)


If this post answered your question, please mark it as a solution to assist others.
If you found it helpful, please use the thumbs up.

shau
Experienced Cover User
64 Posts
Experienced Cover User
Experienced Cover User

64Posts

0Kudos

0Solutions

Re: GST code for eBay seller fees


@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?

Didn't find your answer here?

Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post