Used Items platform issues.

[Sally-san]

Hi so I've got a friend who wants to build a platform where people can sell their wedding or matric dance dresses.

And she has 2 issues.
The first is how to handle tax.
The plan is to take 10% of the sale price and pay tax on that 10%. But is this fine or does she have to pay tax on the entire sale and not just the 10% in which case the platform is almost not viable as she would have to take such a large cut that most people would opt out.

The second issue is how does she protect both parties. The initial plan was to have the buyer pay on the platform, after which the seller can either send or deliver in person (whatever they both agree on). After which the buyer goes on the platform to confirm receiving the goods, and the money is released. However, this has few flaws in the sense that that buyer can lie or not confirm delivery.

Any info on tax or solutions on how to protect both parties would be appreciated.

 

[My_King]

Hi so I've got a friend who wants to build a platform where people can sell their wedding or matric dance dresses.

And she has 2 issues.
The first is how to handle tax.
The plan is to take 10% of the sale price and pay tax on that 10%. But is this fine or does she have to pay tax on the entire sale and not just the 10% in which case the platform is almost not viable as she would have to take such a large cut that most people would opt out.

The second issue is how does she protect both parties. The initial plan was to have the buyer pay on the platform, after which the seller can either send or deliver in person (whatever they both agree on). After which the buyer goes on the platform to confirm receiving the goods, and the money is released. However, this has few flaws in the sense that that buyer can lie or not confirm delivery.

Any info on tax or solutions on how to protect both parties would be appreciated.

Just saying good luck figuring that out. My last issue on BoB was a guy that bought something. 2 weeks later apparently its not what he wanted and wanted to return the item and wanted a full refund including postage.

But seeing as the stuff is sold as secondhand, how can TAX be charged? Perhaps I dont understand this thieving system called TAX.

 

[saor]

But seeing as the stuff is sold as secondhand, how can TAX be charged? Perhaps I dont understand this thieving system called TAX.

Site owner is taking 10% profit, like a listing fee / facilitating the sale fee etc. They're then paying 10% tax on that amount as it's a form of income that needs to be declared & taxed.

 

[My_King]

Site owner is taking 10% profit, like a listing fee / facilitating the sale fee etc. They're then paying 10% tax on that amount as it's a form of income that needs to be declared & taxed.

Thanks

 

[Sally-san]

Site owner is taking 10% profit, like a listing fee / facilitating the sale fee etc. They're then paying 10% tax on that amount as it's a form of income that needs to be declared & taxed.

thanks for that information