YOUR GST QUESTIONS ANSWERED!
Q: Is GST included in the price of my products?
A: Yes. The price you set in your store admin includes GST. For example, if you price an item at $110, then the price ex-GST is actually $100 ($110 divided by 1.1). The price that the customer sees is $110.
Q: How do I calculate GST?
A: You have a product that is priced at $110
Divide this by 1.1 to get the ex-GST amount ie) $100
Therefore the GST amount is $110 - $100 = 10
Q: How is commission calculated for Australian sellers?
A: For a product priced at $110, Hardtofind charges $40 commission + a GST amount of $4 (10% of $40) which we pay to the Australian Tax Office. Therefore you receive $60 + a GST amount of $6 (10% of $60) which you must remit to the Australian Tax Office.
Q: How is commission calculated for Non-Australian sellers?
A: For a product priced at $110, Hardtofind charges $40 commission + the full GST amount of $10 which we pay to the Australian Tax Office on your behalf. Therefore you receive $60
Q: Does GST apply to all sales from imported goods or only if I have a turnover of more than $75K?
A: The law applies to ‘electronic distribution platforms’ (aka ‘online marketplaces’). Sellers on Hardtofind are therefore subject to this new law even if they sell less than $75K per year. Sellers who deliver to Australia but not via an electronic marketing platform would only have to register for GST themselves if they sold more than $75K per year direct to Australian customers.
Q: We sell items that are exempt from tax eg) kids' books, so do we still have to charge GST?
A: Yes, all sales on Hardtofind are subject to GST regardless of GST status.