GrahamC Posted September 23, 2012 Report Share Posted September 23, 2012 Two sellers purchase an item that costs $100+gst from distributor, and both sell at auction $200. Now some auction houses will add GST on to that, but TM everything seems to be sold GST inclusive. So, ignoring the GST component in TM's success fees, the GST registered vendor nets $74, and the non GST registered vendor nets $85. In this scenario, the latter earns 15% more. But the actual percentage will vary. So the non-GST registered vendor can afford to sell below the price that the GST registered vendor sells at. Quote Link to comment Share on other sites More sharing options...
Godly3vil Posted September 23, 2012 Report Share Posted September 23, 2012 It has been like this since as long as I can remember, I somehow don't see it changing in many of our lifetimes. I just placed an order from overseas and I don't feel guilty about it at all, maybe if my LFS had purchased some of the fish I have bred instead of getting them from up north I would have spent more effort and money with them. Goes both ways, if they won't support the hobby why should the hobby support them, especially since I am saving over 65% on what I ordered overseas and that includes shipping, even if I could somehow convince the LFS to source me the same products I bet it would still take 2-3months to get it when from overseas it should be here by the end of the week. It is not my fault they can't and wont compete with the growing internet shopping market. Quote Link to comment Share on other sites More sharing options...
GrahamC Posted September 23, 2012 Report Share Posted September 23, 2012 I read once that it made economic sense for vendors to drop their low margin, high maintenance customers and just concentrate on their high margin customers. Quote Link to comment Share on other sites More sharing options...
livingart Posted September 23, 2012 Report Share Posted September 23, 2012 that makes sense until you factor in word of mouth Quote Link to comment Share on other sites More sharing options...
smidey Posted September 23, 2012 Author Report Share Posted September 23, 2012 Two sellers purchase an item that costs $100+gst from distributor, and both sell at auction $200. Now some auction houses will add GST on to that, but TM everything seems to be sold GST inclusive. So, ignoring the GST component in TM's success fees, the GST registered vendor nets $74, and the non GST registered vendor nets $85. In this scenario, the latter earns 15% more. But the actual percentage will vary. So the non-GST registered vendor can afford to sell below the price that the GST registered vendor sells at. i would be seeking a better rate of auction fees if i was a business selling on TM due to volume of use as it is no different to trade rates elsewhere, the more you buy/use the better the price structure you get. I wonder if that happens. Quote Link to comment Share on other sites More sharing options...
GrahamC Posted September 23, 2012 Report Share Posted September 23, 2012 Only probably happen when a significant competitor appears to TM. Quote Link to comment Share on other sites More sharing options...
smidey Posted September 23, 2012 Author Report Share Posted September 23, 2012 Only probably happen when a significant competitor appears to TM. so your saying it doesn't happen or you don't know? Quote Link to comment Share on other sites More sharing options...
GrahamC Posted September 23, 2012 Report Share Posted September 23, 2012 http://www.trademe.co.nz/help/663/top-seller-programme Quote Link to comment Share on other sites More sharing options...
smidey Posted September 23, 2012 Author Report Share Posted September 23, 2012 http://www.trademe.co.nz/help/663/top-seller-programme there's the GST issue gone if you sell enough Quote Link to comment Share on other sites More sharing options...
jackp Posted September 23, 2012 Report Share Posted September 23, 2012 there's the GST issue gone if you sell enough That's only 15% of the auction fee, not total amount of sale Quote Link to comment Share on other sites More sharing options...
smidey Posted September 23, 2012 Author Report Share Posted September 23, 2012 That's only 15% of the auction fee, not total amount of sale oh yep. good point :oops: Quote Link to comment Share on other sites More sharing options...
phoenix44 Posted September 24, 2012 Report Share Posted September 24, 2012 A lot of GST paid can be offset via creative accounting not available to most normal people. Quote Link to comment Share on other sites More sharing options...
F15hguy Posted September 24, 2012 Report Share Posted September 24, 2012 yes because thats completely legal Quote Link to comment Share on other sites More sharing options...
camtang Posted September 24, 2012 Report Share Posted September 24, 2012 good accountant's find loop holes. much like good lawyers find technicaly ways out of things Quote Link to comment Share on other sites More sharing options...
phoenix44 Posted September 24, 2012 Report Share Posted September 24, 2012 There's nothing illegal about reducing your GST and tax obligations if you do it legally. Quote Link to comment Share on other sites More sharing options...
Artem Posted September 24, 2012 Report Share Posted September 24, 2012 Its a very fine line between tax evasion (illegal) and tax avoidance (legal). Basically you need to have the intent to pay taxes, you're just reducing the amount Quote Link to comment Share on other sites More sharing options...
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