Some members have asked why it is that eBay’s final value fee charges continue to be charged on the final price of the item even when GST may not be applicable to the transaction, such as in overseas transactions.

Please note that the 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. Nor does it apply where GST is not applicable to a transaction.

In response to member enquiries, we have consulted the ACCC and further clarified our existing GST policy as follows:

How does the GST policy apply to final value fees?

Final value fees will continue to be charged on the final price of the item (inclusive of GST), which is similar to other companies that charge percentage-based fees on GST inclusive prices (such as credit card companies for department store purchases). That is, the calculation of the eBay final value fee for all transactions (including overseas transactions) is based on a GST inclusive price. In some instances a seller will refund part of the final price to an overseas buyer because GST may not be applicable to the sale. In such a case the final value fee is still calculated on a GST inclusive basis. This is because it is not possible for eBay to know whether the final price charged for the item has subsequently had any component refunded by the seller.