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Netfleet.com.au now EX GST made more clear

Discussion in 'Netfleet.com.au' started by DomainNames, Apr 7, 2011.

  1. DomainNames

    DomainNames Membership: Community

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    IMPORTANT: Price does NOT include GST This message comes up when you make offers and bid now.

    good work from Netfleet now making it clear when you make an offer for names that are for sale that bids do NOT include GST
     
  2. snoopy

    snoopy Membership: VIP

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    Going to be very problematic in my view, should be the other way around as sellers are now going to have to ask for the 10% extra and buyers won't know what they are up for at time of bidding because they won't know the sellers GST status.
     
  3. DavidL

    DavidL Membership: VIP

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    auDA Member:
    Yes
    If the seller is registered for GST, they need to send an invoice to that effect and the buyer will pay them an extra 10% on top of the bid price.

    But then the buyer will be able to use that GST payment as an input tax credit so it will completely offset the same amount of GST payable during the quarter.

    So buyers will be neither better nor worse off regardless of the GST status of the seller.

    That's my understanding anyway...
     
  4. snoopy

    snoopy Membership: VIP

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    If the buyer isn't registered but the seller is they'll be paying an extra 10% and won't be able to claim it.

    I think the issue is sellers insisting on buyers paying 10% more than the price displayed and buyers trusting a seller to send a tax invoice. The second issue is that when a buyer clicks "buy" they won't know what they are up for because they don't know the sellers GST status. In my view it would be far better to have a price where the seller is liable for GST, in other words the buyer knows the price they'll need to pay and the seller will know whether they need to pay GST or not.
     
  5. DavidL

    DavidL Membership: VIP

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    auDA Member:
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    No the seller wouldn't charge for GST if the buyer isn't registered for GST so it works out the same.

    I just bought a bunch of co.uk names. I was informed, quite naturally to me, that if I was registered for VAT I would have had to pay an extra 17.5%. I wasn't, so I didn't.
     
  6. snoopy

    snoopy Membership: VIP

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    If the seller is registered for GST and the buyer isn't registered the seller has to charge GST.

    The reason why you didn't have to pay is most likely because it is an export sale.
     
  7. Timmy

    Timmy Banned

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    I've never had a problem with GST from buyers whether they be registered or not.

    I am registered for GST, so I have to charge it regardless.
     
  8. DomainNames

    DomainNames Membership: Community

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    you have to pay GST whether you are registered for gst or not. When you go to coles or woolworths you pay gst. Australian Domain names are no different.

    Netfleet has made it very easy now for people see and understand how much they are bidding and how much they will pay.
     
  9. DomainNames

    DomainNames Membership: Community

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    David I dont think thats correct. Its irrelevant if the buyer is registered for GST or not. If they are in Australia ( not an export sale) they must get charged GST thats the ATO tax rules.
     
    Last edited: Apr 8, 2011
  10. Nova

    Nova Membership: Community

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    Being registered to collect GST only means you can claim the GST component in purchases. It in no way reflects the price of purchase - it's merely the seller that is impacted by GST status.

    That's my understanding and I may be wrong, but I'd only be listening to an accountant :)
     
  11. DavidL

    DavidL Membership: VIP

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    auDA Member:
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    Ah man... I hate GST that's all I know!!!

    Anyway when we first set up the aftermarket we were advised to include GST in all prices. People started complaining as sellers seemed to, more often than not, add GST onto their sale prices.

    It seemed that many people assumed that prices were GST exclusive despite our statements to the contrary (although once a deal is done, buyers tend to suggest that GST should not be added and sellers suggest it should be... what they really think should should be taken with a pinch of salt!).

    So rather than fight it, we changed it to what it seemed the majority wanted. Have we made a mistake? :(
     
  12. jam

    jam Membership: Trader

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    I want the price I bid to be the price I pay.
    I'm not registered for GST so any domains I sell will not have GST added.

    Adding 10% is the wrong way to go about it in my opinion.

    If someone adds 10% on a price, ill tell them to go.......selves, Its not my issue that they haven't factored in GST.


    GST should not be mentioned on netfleet except for the products they are selling, and they should already include GST.
     
  13. DomainNames

    DomainNames Membership: Community

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    Netfleet has made it all EX gst across the site to make it clear. The snapper auction is EX gst and they add it on later so you need to factor in your bid accordingly. Do you want them to make it inc gst for the auctions?
     
  14. jam

    jam Membership: Trader

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    Yes.
     
  15. Nova

    Nova Membership: Community

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    NetFleet GST thingy

    I just had a thought in regards to the NetFleet GST issue. I know it's recently been implemented that GST isn't included etc, but there is a solution.

    The ABR does have an API from memory, why can't the NF system do an API lookup for the ABN the domain is registered to, and automatically deteremine GST status and apply that to the listing? It wouldn't work for domains that aren't registered with an ABN of course (ie. those under a state BN), but for the majority it would work fine IMO.
     
  16. Mark

    Mark Membership: VIP

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    Interesting idea Nova. Might be hard to manage like you say though for non ABN domains.

    Will pass around the team and see what they think

    Thanks
    Mark
     
  17. djuqa

    djuqa Membership: Trader

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    When it is an issue of the application and enforcement of taxation laws, it is not a democratic process.

    The majority of smokers would rather not pay tobacco taxes and excises, but must.
    The majority of drinkers would rather not pay Alcohol excises and taxes, but must.

    The same principle applies to the charging and listing of domain auction sale prices including GST.
    All products and services that have a GST chargeable status MUST have a Net (Including GST) Quoted price.
    http://www.ato.gov.au/businesses/di...0&doc=/content/00221985.htm&page=8#P210_12550
    Disclaimer: the above is not given as taxation advice, but as a common sense approach to the problem.
    If in doubt use the ATO Faq's
     
    Last edited: Apr 11, 2011
  18. DomainNames

    DomainNames Membership: Community

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  19. DomainNames

    DomainNames Membership: Community

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    so drop should make their daily drop auction inclusive of gst in the bidding also?

    https://www.drop.com.au/my_account/knowledgebase.php?action=displayarticle&id=9

    * Bids displayed exclude 10% GST (we add the GST to your winning bid and your invoice)
    * Bids displayed exclude the domain registration price (we add the registration fee to your winning bid and your invoice)


    so shouldnt all their reported sales have 10% added on them to show what the name sold for inclusive of gst? example did hardware sell for Hardware.com.au $33,333 or did it really sell for $36666.30? ( inc gst)

    https://www.drop.com.au/auction/history/ so all these need 10% added?
     
    Last edited: Apr 11, 2011
  20. snoopy

    snoopy Membership: VIP

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