Tax in Australia

Full Member
reutsharon
Posts: 27
Joined: 05 Dec 06
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11 Nov 07 11:06:36 am
ok i know i am gonna sound stupid to all of u, please don't laugh at me :cry:
i am trying to start something here, i am selling on ebay, dropshipping from china, i have no idea what is going on with the tax, do i need to open ABN number? is it like a business?
i just move here to oz, and i am a little bit confused about the rules and everything...i know there is a subject about this issue here in this forum, but i can't find it, please if someone can tell me how do i find out about the tax for ebay?
i mean if i sell something do i need to pay the tax? i know there is every time i am selling something - it's show 'get paid send invoice', i never send it, and i never received from any buyer on ebay....
anyway i really need help, i hope i am doing the right thing. if not - what is the right thing to do?
thanks!!!!
reut

Full Member
grace-salehoo
Posts: 331
Joined: 15 Jun 06
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11 Nov 07 09:55:00 pm
Hi Reut,

I've just moved to Australia also, so I've been looking into these things as well :)

If you are working as a sole trader then you just need to add the income you earn from selling on eBay etc to your overall income when you do a tax return at the end of the financial year. Make sure you keep records of how much you buy stock for, how much you sell it for, the eBay fees you pay, your profit, and any other expenses.

Basically you need an ABN number if your income is $75,000 +. You need to register for GST once you are earning $75,000 and over and an ABN number is necessary to do this.

Once you have an ABN number you need to put it on your website (if you have one) letter heads, business cards etc - anywhere that is going to be circulated in public.

If you are working from home then don't forget you can claim tax deductions on business expenses (rent/mortgage, utilities, internet bill etc). So remember to keep receipts and all your bills for the year.

Link hidden: Login to view

I would strongly recommend that you find an accountant to do you yearly accounts for you to make sure everything is in order.

Usually it only costs about $300-$1000 per year for an accountant to do your accounts for you and file your tax return. It saves a lot of effort and it's well worth the money if you have a couple of different sources of income.


Grace

Full Member
reutsharon
Posts: 27
Joined: 05 Dec 06
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12 Nov 07 01:36:07 am
thank u so much!!!!!!!!

Full Member
stylish-me
Posts: 7
Joined: 23 Oct 07
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12 Nov 07 08:07:46 am
Dear Reut,
Grace was right, get your ABN as you might also be needing it when you deal with local wholesalers. I reckon you'll be able to apply online at Link hidden: Login to view.

For your ebay sales, keep a record of the sales invoice by printing it out using Selling Manager. This is a basic tool that you can obtain from ebay if i'm not mistaken. Just print them regularly because above 90 days transaction won't probably be retained.

Just create a spreadsheet for all your sales transactions on ebay and another spreadsheet for all your documented expenses of your ebay business.

Good reading materials/guides you can download from Link hidden: Login to view are n3029.pdf and n10710.pdf

Regards

Bryan

Full Member
reutsharon
Posts: 27
Joined: 05 Dec 06
Karma: 
13 Nov 07 12:53:25 am
you are the best!!!
thank u so much for thet, i have one more question:
when i sold somthing, i have a link with 'get pay -send invoice!', do i need to do thet? what is that invoice for? is anyone really send them? i know i never received any, and i purchas a lot from ebay.
thanks
reut

Free Member
tgibbings
Posts: 3
Joined: 04 Nov 07
Karma: 
13 Nov 07 05:32:12 am
Just be aware if you claim a tax deduction for part of your mortgages (eg if you use 10% of your home to run your business you can claim 10% of the interest on mortgage as a tax deduction). If you do do this it will have captial gains implications when you sell the house.

Full Member
stylish-me
Posts: 7
Joined: 23 Oct 07
Karma: 
13 Nov 07 07:12:38 am
Hi Reut, yes you can click the send invoice button once you've sold an item. This actually sends a copy of the invoice to your registered email address on top of what is sent to the buyer. I reckon you can use this as a reference or alternatively you can print the invoice as provided by the selling manager tool. I prefer the invoice from selling manager as it has a distint record number.
Bryan

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