Sellers - Goods and Services Tax (GST)

All items include GST in the sale price.

What are the implications for a GST registered entity selling through Tropicaltech?

When a GST registered company or person, or one that is required to be registered, obtains the services of Tropicaltech to sell their items, whether by direct marketing methods or through auction, GST at the rate of 10% would apply to goods sold.

The company or person would subsequently be required to prepare a Business Activity Statement, which depending on the status of the entity would be lodged with the ATO every month or quarter.

Is GST payable on the marketing commission?

Yes, the marketing commission is considered a taxable supply of Tropicaltech's services. Accordingly, GST on any fees or commissions would be required to be charged to the vendor by Tropicaltech.

How will the GST be treated on new goods, used goods and marketing commission?

In general, if the vendor is registered or required to be registered, the sale of new or used goods will attract GST. The vendor is required to charge the purchaser the GST, collect the GST and subsequently remit the amount to the ATO (after claiming any applicable input tax credits)

The marketing commission and ancillary costs if any to any vendor (registered or not) will be subject to the GST provisions.

Who is responsible for the remittance of GST imposed on the sale of items through Tropicaltech, the agent or the vendor?

In accordance with general law principals, the vendor is ultimately responsible for the collection and remittance of any GST applicable to the sale of an auctioned item.

In most circumstances, where the vendor is registered, the GST-inclusive sale price, less marketing fees or commission, is passed on to the vendor who must then account for GST in their business activity statement.

Will GST apply to used goods, that have already had GST paid on them?