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  May 2005 |
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***GST Policy - Additional Information in response to member queries*** |
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31 May 2005 | 07:30PM EST

We appreciate your feedback in relation to our recent GST Policy modification. As announced last week, the Policy will be modified (effective Monday, 13 June 2005) in response to concerns raised with us by the Australian Competition and Consumer Commission (ACCC) and eBay buyers and sellers, regarding some Australian sellers using GST-exclusive pricing.
These concerns came about because some sellers were adding GST to the final price of an item which could be considered misleading and deceptive conduct and accordingly in breach of consumer protection laws.
We’ve been taking on board your feedback and wanted to provide you with some additional information that we hope is of assistance to you.
Under the modified policy, sellers who are required to be registered for and charge GST must include the GST component in the final price of the item, meaning that they must not add the additional 10% on account of GST after the buyer has won the auction or purchased the item using Buy It Now. Accordingly, for sales covered by this Policy, 1/11th of the final price of the item is considered to be the GST component.
As an example:
Final price at Auction End = $11.00
1/11th of $11.00 = $1.00
In this example the seller must set aside $1.00 out of the final price of the item for GST.
Some of you have asked about the ACCC’s role in relation to the modification. eBay works closely with regulators both in Australia and throughout the world to help ensure the best possible trading experience for the eBay community, and this Policy modification is no exception.
The ACCC is a national law enforcement agency in Australia which enforces consumer protection and fair trading laws, and promotes competition in the marketplace. Among the areas it administers, the ACCC aims to ensure that consumers are not mislead or deceived as to the final prices and true costs of items. The ACCC has published several guides on GST-inclusive pricing, and have provided examples of what is considered acceptable practice. As an example, the ACCC has said that stating “$125 + GST” or “$125 + 10% GST” is not acceptable and may possibly be in breach of consumer protection laws. Other industries are facing similar issues with respect to GST-inclusive pricing.
If you haven’t already seen the ACCC’s News Release with respect to the Policy modification, you can obtain a copy here: http://www.accc.gov.au/content/index.phtml/itemId/608311/fromItemId/2332
In the release, the Chairman of the ACCC Mr Graeme Samuel says:
"Once the ACCC contacted eBay in order to raise its concerns about GST exclusive pricing on the eBay Australia website, eBay offered to change its GST policy in order to provide certainty for all users of the website. The ACCC believes this outcome will reduce confusion for all eBay customers and ensure that eBay sellers are competing on equal terms".
We’re also pleased to let you know that we’ve added some additional information and FAQs in the GST Policy, in response to your feedback. Please refer here for an updated version of the Policy.
Remember, this policy only applies to sellers who are required to be registered for and charge GST. If you’re unsure whether you’re required to do this, please contact the Australian Tax Office (www.ato.gov.au) or your legal or tax adviser.
The policy will come into effect on Monday, 13 June 2005.
Thank you for your understanding, and please do continue to provide us with your feedback.
Regards,
The eBay Team
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***Important Clarification to GST Policy Change*** |
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23 May 2005 | 12:11PM EST
 This is an important clarification to our announcement today regarding changes to eBay’s GST Policy.
PLEASE READ CAREFULLY.
eBay announced today a change to its GST Policy, under which sellers must include GST in their item prices and not add GST on top of the final price of an item.
Our announcement incorrectly stated that the policy change would become effective 24 May 2005. The date that the policy change actually comes into effect is Monday, 13 June 2005 (that is, three weeks from today). We sincerely apologise for any inconvenience.
Below is a copy of the corrected announcement.
This GST policy only applies to those sellers who are required to be registered for GST, and accordingly, does not apply to those members who are not required to be registered for GST.
If you are a seller who is required to be registered for and pay GST, you must ensure that the GST component is included in the price of the item from the time it is listed. You must not add GST on top of the final bidding price or Buy It Now price once your item has been won or bought. This means that all listings on eBay are considered to be GST inclusive, where GST is applicable to the transaction. It is the seller’s obligation to ensure that they are meeting all obligations with respect to GST.
We are aware that many sellers required to be registered for GST already include GST in their prices, in accordance with eBay’s previous recommendations.
eBay’s GST policy now requires this as a compulsory condition of listing. We have made this change after liaising with the Australian Competition and Consumer Commission (ACCC) and receiving member feedback.
This means sellers who are listing on eBay from 13 June 2005 and that are required to charge GST will need to set aside 10% of the final value for GST purposes. The 10% must not be added afterwards by the seller.
You should also note that sales to overseas buyers (exports) are considered GST free. Where GST is included in the price of an item and your winning bidder or purchaser is located overseas, you may consider refunding the GST component of the item’s final value to the buyer or reduce your postage and handling accordingly, in order to subtract the GST component from the final value.
For more information, please refer to eBay’s GST policy or contact Customer Support via the online webform.
You may also wish to visit the websites of the ACCC and the Australian Taxation Office.
Regards,
The eBay Team
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***Important Notice – GST Policy Update*** |
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23 May 2005 | 07:00AM EST

This is an important announcement to advise our community of an upcoming change to eBay’s GST policy effective 24 May 2005.
This GST policy only applies to those sellers who are required to be registered for GST, and accordingly, does not apply to those members who are not required to be registered for GST.
If you are a seller who is required to be registered for and pay GST, you must ensure that the GST component is included in the price of the item from the time it is listed. You must not add GST on top of the final bidding price or Buy It Now price once your item has been won or bought. This means that all listings on eBay are considered to be GST inclusive, where GST is applicable to the transaction. It is the seller’s obligation to ensure that they are meeting all obligations with respect to GST.
We are aware that many sellers required to be registered for GST already include GST in their prices, in accordance with eBay’s previous recommendations.
eBay’s GST policy now requires this as a compulsory condition of listing. We have made this change after liaising with the Australian Competition and Consumer Commission (ACCC) and receiving member feedback.
This means sellers who are listing on eBay from 24 May 2005 and that are required to charge GST will need to set aside 10% of the final value for GST purposes. The 10% must not be added afterwards by the seller.
You should also note that sales to overseas buyers (exports) are considered GST free. Where GST is included in the price of an item and your winning bidder or purchaser is located overseas, you may consider refunding the GST component of the item’s final value to the buyer or reduce your postage and handling accordingly, in order to subtract the GST component from the final value.
For more information, please refer to eBay’s GST policy or contact Customer Support via the online webform.
You may also wish to visit the websites of the ACCC and the Australian Taxation Office.
Regards,
The eBay Team
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***Coming Soon - Changes to eBay’s Invoice and View Account Status pages*** |
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20 May 2005 | 03:31PM EST

We’re making it easier for sellers who have subscribed to eBay products (for example, Selling Manager Pro), to find information on fees and corresponding credits for their subscriptions in their monthly invoices.
In the next few days, improvements to the invoice and View Account Status pages will make it easier to locate and sort subscription credits such as free trials, promotions, and discounts on other purchased services.
Here’s a brief description of the changes:
- Changes to the invoice—Sellers will now be able to find the Discounts section containing the subscription credits immediately after the Monthly and One-time Fees section containing the subscription fees. These two sections will be at the end of the invoice, after the Transactions section that contains insertion, listing upgrade, and final value fees.
- Changes to View Account Status pages—On these pages, sellers sorting transactions by Fee Type will now see subscription fees and credits grouped together. A subtotal will be provided for all subscription fees.
These changes apply to the following subscription products: Selling Manager Pro, eBay Stores, Sales Reports, and Picture Manager.
You will begin seeing these changes on the View Account Status pages in the next few days. You will see these changes appearing in your invoices for the next billing cycle (May 31st or June 15th, depending on your billing cycle).
Regards,
The eBay Team
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****** FREE Gallery Promotion ****** |
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16 May 2005 | 12:15PM EST

eBay.com.au is pleased to announce a FREE Gallery Promotion! You can choose Gallery for FREE for three days only, commencing Tuesday 17th May, 2005.
All items listed on eBay.com.au between the hours of 12:00:01am AEST, Tuesday 17th May and 11:59:59pm AEST, Thursday 19th May, 2005 will be eligible for Gallery for FREE.
Adding your item’s photo to the gallery enables potential buyers to preview your item instantly in the Listings view. Use a gallery photo to help attract more buyers and a higher price. On average, listings using Gallery attracted 72% more bids than listings that used no listing upgrades.*
Price promotions on eBay.com.au only happen every once in a while, so make sure you take advantage of this opportunity. For more information, see eBay’s price promotion page.
Have fun trading on eBay!
Regards,
The eBay Team
*This represents an average based on data from June 2004 transactions on eBay.com.au. No representation is made that a seller's final price, number of bids or conversion rate of a specific item will increase by the average percentages noted above.
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***eBay Site Issues Update*** |
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10 May 2005 | 08:10PM EST
 This afternoon a primary hosting provider for eBay in the San Francisco Bay Area experienced a power outage, and all site functions were temporarily down. eBay has been working with our hosting vendor to fully restore the site. As of 15:10 AEST all listings were available to view and bid on, however, some other site functions remained intermittently available. We will work to resolve these remaining issues during the next several hours.
eBay will be issuing credits and listing extensions, per our outage policy.
The listings on eBay’s sites around the world sit on 21 complex databases. Today’s outage affected the listings on those databases in two ways:
- One group of databases was unavailable from 12:33 AEST until 15:10 AEST. Since the items in these databases were unavailable for more than 2 hours, eBay will credit all fees associated with these listings. In addition, eBay has extended these listings by 24 hours and added an additional two hours to the credit and extension period.
- The second group of databases was unavailable for less than 2 hours, from 12:33 AEST until 14:15 AEST. Since these items were unavailable for less than 2 hours, eBay will credit all listing fees associated with these listings, but will not extend the listings. We will also add two hours to the credit period for these listings.
We thank you for your patience, and we apologise for the inconvenience this may have caused. We will provide additional information on this situation as it becomes available.
Regards,
The eBay Team
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