netfleet going to ex gst across the board

[DomainNames]

Hopefully we will soon all get confirmation on the ex. GST or incl. gst issue on aftermarket auction platforms etc.

I believe Netfleet will soon be confirming (or changing?) netfleet bidding as ex gst across the board ( Standard catalogue sales, drops auctions etc)

This will be a great to help clarity for newbies and oldies! This means any sales will need to have 10% added to it for GST on top of the winning bid price shown.

Is this more clear to you guys. Should wining bids be EX GST or should it be winning bid Inc GST like Ebay http://pages.ebay.com.au/help/policies/seller-gst.html

It is still confusing different areas of the same website are ex gst and some are inc gst apparently?

I spoke to Mark at Netfleet and they are doing some awesome work to help everyone where they can with problems / issues. Hand claps for their hard work and netfleet.com.au website which has been beneficial so much to the industry and many of us here. Where would thedomain aftermarket / drop industry be without netfleet.com.au, drop and others? Obviously they now get a good reward for their work when names sell via them at their auction etc. They deserve it. O fees on standard listings sold is great also and I hope they always keep that!

 

[Nova]

It should be inclusive. I disagree with ever displaying a price exGST, it's irrelevant.

 

[Shane]

It should be inclusive. I disagree with ever displaying a price exGST, it's irrelevant.

In retail transactions, yes displaying a price ex-GST is somewhat irrelevant.

But in B2B transactions (which domain sales will generally be) the accepted method is to quote prices ex-GST, as this is the "real" price paid for the item once GST paid has been offset against GST collected.

 

[Nova]

The "real" cost is determined at BAS time when the inputs vs credits are calculated. IMO, quoting exGST is of no benefit - it's not like it's hard to subtract 10% from the price in your head

Displaying exGST is really only to give the impression of lower prices.

 

[snoopy]

In retail transactions, yes displaying a price ex-GST is somewhat irrelevant.

But in B2B transactions (which domain sales will generally be) the accepted method is to quote prices ex-GST, as this is the "real" price paid for the item once GST paid has been offset against GST collected.

If netfleet isn't actually collecting the tax then I'd say it is problematic to be quoting something as ex gst.

How will buyers know what the final price is before buying a name/bidding? They'd need to guess the GST status of the seller.

If they do pay the GST can they trust the seller to send a tax invoice so they can claim it back?

Will sellers be comfortable say "ok your final bid was $XXXX, now I need to add GST" - it is a potential issue for a transaction right from the start. I would imagine some buyers are going to feel mislead (especially the smaller ones who aren't used to ex-gst pricing) if they are asked to pay 10% more.

 

[coreyg]

Interesting read for the ATO

Cheers
Corey