Setting up GST and currency exchange for TradeMe : Omnivore Support

TABLE OF CONTENTS

Overview
Examples and Scenarios

Overview

The price of your Trade Me product listing is affected by the tax component and the currency exchange rate if your store currency is not NZ Dollar (NZ$)

From 1 December 2019, if you are an international seller (i.e not based in NZ) on Trade Me GST will be applicable on your products. Trade Me will collect the GST on your behalf and remit it to the New Zealand Government.

The final price on Trade Me depends on the following:

Is the product taxable in your home country? i.e. the price we retrieve from your eCommerce system has a tax component included?
Are you required to pay tax on a sale in New Zealand? i.e. do you need to add the NZ GST component of 15% for the product sale, (this now compulsory for International sellers)?
Are you using the Omnivore daily currency exchange rates or you have set your own custom exchange rates?

NB: If you are a large seller and pay GST to the IRD in NZ you can opt-out of Trade Me adding 15% to the price of your listings and collecting GST on your behalf. Please contact Trade Me for this.

Depending on the answers to the above questions, you will likely use one of the scenarios below.

Examples and Scenarios

1. New Zealand retailer selling on Trade Me.

Your prices entered in your eCommerce system are in NZ$
There is no currency conversion.
Most likely you don't need to configure anything. Omnivore should understand if the product is taxable or not and accordingly calculate the NZ GST component.
If you sell a mix of both taxable and non-taxable products and your eCommerce system is Magento, you might need to set the GST free classes in Settings -> Feeds -> Non taxable classes

2.1. Prices in AU$ without GST, and GST added on Trade Me

Example: your Australian consumer price is AU$ 110.00
The Net price is also AU$ 110, since there is no tax included in the product price.
The Net price in NZ$ using the daily exchange rate of 1.095 is: AU$ 110.00 * 1.095 = NZ$ 120.45
Because there is 15% NZ GST, the final consumer price on Trade Me is NZ$ 138.52
Note: the ex GST price will be sent back to your eCommerce store as TradeMe will remit the GST on your behalf.

2.2. Prices in AU$ with GST, and GST added on Trade Me

Example: your Australian consumer price is AU$ 110.00
That means a Net price of AU$ 100.00 and a GST component of AU$ 10.00
The Net price in NZ$ using the daily exchange rate of 1.095 is: AU$ 100.00 * 1.095 = NZ$ 109.50
Because you are paying GST in New Zealand, there is a 15% GST component added to the NZ$ Net price: 109.50 * 1.15 = 125.925 rounded up to 125.93
The final consumer price on Trade Me is NZ$ 125.93
Note: the ex GST price will be sent back to your eCommerce store as TradeMe will remit the GST on your behalf.

3. UK based retailer selling on Trade Me

The same principles apply as in the examples above, except the standard UK VAT rate is 20%.
Note: the ex VAT price will be sent back to your eCommerce store as TradeMe will remit the GST on your behalf.

4. You enter your prices including tax in your home market

For Shopify and Bigcommerce, Omnivore can retrieve this information automatically, you just need to ensure you have correctly set up your eCommerce system.
For Magento, this is assumed to be true by default.

5. You enter your prices excluding tax

For Shopify and Bigcommerce, Omnivore can retrieve this information automatically, you just need to ensure you have correctly set up your eCommerce system.
For Magento, you will need to let us know if this is the case, by submitting a ticket.