For each successfully completed payment made via the Handkrafted payment facility, the client has the option of receiving a tax invoice that we issue to them on behalf of you (and for online purchases via our checkout workflow, an invoice will be sent to the client automatically following payment).
Where you are registered for GST (which can be updated via the Maker Profile menu in your online account), the invoice will clearly mark the GST included.
Handkrafted will also provide makers with a tax invoice for any marketplace fees they have charged the maker (ie. the commission), noting that fees charged by us are GST inclusive.
A maker charges a client $1,100 (inclusive of GST and Handkrafted’s commission) for a coffee table, collecting payment via a single upfront payment.
The maker will send a payment request to the client for $1,100, with our payment system clearly notifying the maker that they will receive $990 after deducting Handkrafted’s $110 commission (assuming the maker is on an agreed commission rate of 10% as a subscribing Premium maker).
Once the payment is complete, our system will provide the client with a tax invoice from the maker for $1,100 (inclusive of GST). The tax invoice will reference a GST line item of $100 (assuming the maker is marked as GST registered).
The maker will also receive a tax invoice from Handkrafted for the marketplace fees charge of $110, inclusive of GST. The tax invoice will reference a GST line item of $10.
The maker will be liable to pay the ATO GST of $90 (ie. $100 charged minus $10 input credit) for the $990 amount they received.
Feel free to contact Handkrafted at [email protected] if you have any questions or would like further insight.