yam.83

I am selling on ebay as well as my own website. Can I claim ebay listing fees and relist fees and postal costs as a legitimate business expense? How do the revenue calculate the profit if any from sales on ebay if the item has had to be relisted multiple times? I have enough trouble understanding ebay invoices as it is?

Would the revenue look at my cost price and then sale price and match up listing and paypal fees against each item to calculate profit or loss? presumably I only pay tax on a sale if there is a profit element?

David.Pagotto

Hi Yam,

Yes you can.

You don't need to do it on a per item basis. Just calculate it monthly and use your ebay invoice total.

E.g.

Sales $1,500
Stock cost $500
Ebay invoice $100
Postage costs $200

Profit $700

Obviously you would have other expenses to add as well. There are different ways of accounting as well but this might be the easiest.

Hope this helps.

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