Hello,
I have a question regarding the recent payment structure change with eBay and how sellers are paid for the goods they sell. Previously, eBay offloaded the payment for items to third parties such as PayPal. Now, eBay themselves manage payments, so they keep all the money from sales and pay sellers in lump sums on a daily or weekly basis. I have a question on which figures I should report given that eBay now simply takes their fees from the payout total, thus meaning there is a portion of sales I never technically receive. An example:
I run a business and I am GST-Registered. I sell an item for $10 on eBay, but I do not yet receive the money. eBay holds the money until my next scheduled payout date the following week. On the payout day, I physically receive $9 out of the $10 sale (with eBay keeping $1 as a sales fee).
1: During GST and BAS reporting, do I:
a): declare the full amount of $10, paying $0.90 GST despite only physically receiving $9 from the sale and declaring the $1.00 fee as a tax deduction.
or;
b): Declare $9 (the amount I actually received), paying $0.81 GST, and ignore the $1.00 fee?
2: I also receive income from PayPal. PayPal takes their fees as the payment is processed. In an example $5.00 sale with a $0.43 PayPal fee, do I declare the full $5.00 sale in my BAS, or do I declare the amount actually received ($4.57), paying any applicable GST on $4.57, and ignore the PayPal merchant fee?
Thanks for any assistance.
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