Australian Business eBay Users Must Charge GST On Purchases

by Mary Swire, for LawAndTax-News.com, Hong Kong

26 May 2005

Australia's Competition and Consumer Commission announced on Monday that all traders selling products via internet auction site eBay's Australian operation will be required to include GST in the price of their listings from June 13, 2005.

"eBay Australia is implementing the changes in response to concerns raised by the Australian Competition and Consumer Commission and eBay members," ACCC Chairman, Graeme Samuel, explained, continuing:

"The ACCC contacted eBay in 2004 with concerns that many traders were listing items for sale on the eBay website with auction or fixed Buy It Now prices which were exclusive of GST. This was often only made known by the seller through information provided some pages from the initial bid or Buy It Now price for the listed item. Some eBay buyers reported that they had been charged an additional 10 per cent on top of their winning bid or Buy It Now price without having been properly alerted beforehand of the additional charge."

He added:

"Some traders using eBay to sell products were also concerned that their competitors' prices appeared to be lower because they did not include GST. "

eBay Australia has reportedly liaised with the ACCC to modify its GST policy, which now makes it a requirement for all sellers on the eBay site to include any applicable GST in their auction or Buy It Now price. Before the policy was modified, this was not required of sellers, although it was recommended.

Mr Samuel concluded by announcing that:

"The modified policy only applies to eBay sellers who are required to be registered for GST."

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