Our sales on Ebay have a value Before any fees are deducted. The value includes GST. The fees are then deducted before the final transfer of funds. The invoice from Ebay does not indicate any GST in these fees which seems strange as they are a percentage of the total sales value. For clarity, is the value of the sales for income purposes the amount excluding GST only or less the fees charged by ebay.
Hi @ClaritySeeker,
Okay so you advised the 'value of your product includes GST' that you sell on eBay.
You are correct that GST is collected on behalf of the ATO and you pay that to us when you lodge your BAS. When you complete your activity statement, you have the choice to report GST inclusive amounts or GST exclusive amounts.
I was advising to not take away the fee component from your sale when reporting the amounts. I apologise if that was unclear.
Hi @ClaritySeeker,
With your question: Is the value of the sales for income purposes the amount excluding GST only or less the fees charged by eBay?
For income purposes, the amount of what you are selling is the income you are earning. This includes GST.
The fee that eBay charges is separate. The fees are a business expense you incur to sell your items using that platform.
We had a similar post from another community member you may find helpful.
Hi Danielle
I am a little confused over what you have said. When reporting income in the financial statements it is exclusive of GST as this is a tax that is collected on behalf of the ATO and paid to them when the BAS is lodged. Is this not correct?
Thanks
Hi @ClaritySeeker,
Okay so you advised the 'value of your product includes GST' that you sell on eBay.
You are correct that GST is collected on behalf of the ATO and you pay that to us when you lodge your BAS. When you complete your activity statement, you have the choice to report GST inclusive amounts or GST exclusive amounts.
I was advising to not take away the fee component from your sale when reporting the amounts. I apologise if that was unclear.
Sorry if I confused you. Thanks for your help.
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