PayPal and ATO

[allykatjie]

Hi all
Quick question is there a transaction limit in Australia at which point PayPal will disclose information to the ATO? Something like the 200 transactions or 20k in the USA? I thought I had read somewhere it was $20,000 without a transaction limit, but somewhere else I read $10,000, can anyone clarify?

[GreenBean]

The amount that causes reaction is $1,000

warning copy of old email from paypal on topic
Here is the email I received:

-----
Your PayPal account balance is nearing $1000 AUD. When your balance reaches
this amount, we'll need to confirm your identity.

----------------------------------------------------------------------
Why do I need to give PayPal more information?
We value your business and want to help you continue to use your account
with minimal disruption. But, just like a bank, we need to confirm your
identity to comply with Australian Anti-Money Laundering and
Counter-Terrorism Financing laws as outlined in our User Agreement and
Product Disclosure Statement. By confirming your identity, you'll help keep
PayPal a safe place to send and receive payments online.

----------------------------------------------------------------------

What do I need to do?
We need you to provide proof of identity documents to help us confirm your
identity. Please log in to your PayPal account and go to the Resolution
Centre under "My Account" to find out what you need to submit.

Please provide these documents as soon as possible to avoid limitations
being placed on your account.

If your balance reaches $1000 AUD before we've completed this process, we
will be required to limit your access to many features of your PayPal
account. Any limits we place on your account will be removed within 2-3
business days of you completing the steps set out in the Resolution Centre,
and us confirming your information.
.................................................. ..................................................

What volume do you intend doing is crucial to what action you take, imo.

[rsot]

Wow - time to spread sales OP - keep the amounts low

[bananaappeal]

20k in ebay sales will get your information forwarded to the ATO by eBay Australia

[allykatjie]

When you say $1000, does that mean the PayPal balance has to sit at $1000 or over, or has had a total of $1000 go through it? I sell pretty low volume compared to a lot of people here, my balance never reaches $1000 before withdrawing, does this make a difference? I never remember getting this request on my old account any information would be great.

As for the ATO limit of $20000, does the number of transactions matter like in the US? What I mean is could you sell 500 items @ $4000 total for example, would this be reported to the tax office?

[bananaappeal]

Originally Posted by allykatjie

When you say $1000, does that mean the PayPal balance has to sit at $1000 or over, or has had a total of $1000 go through it? I sell pretty low volume compared to a lot of people here, my balance never reaches $1000 before withdrawing, does this make a difference? I never remember getting this request on my old account any information would be great.

As for the ATO limit of $20000, does the number of transactions matter like in the US? What I mean is could you sell 500 items @ $4000 total for example, would this be reported to the tax office?

20k in eBay sales. I wouldn't imagine a there is a transaction limit. Though you could spend $60 and call a professional

[allykatjie]

Can anyone clarify the $1000 limit? Thanks guys

[bananaappeal]

Originally Posted by allykatjie

Can anyone clarify the $1000 limit? Thanks guys

1000 in balance, not 1000 in total sales of the account life. Keep the balance under 1000 at anyone time to avoid hitting the roof. Though in the big picture having a non limit pp account is alot more beneficial and easier on the brain.

[allykatjie]

Thanks again. Appreciate it.

[munchkinxx]

Is it $20k in Ebay sales a year? If so, will creating another email and linking it to the same PP account avoid this?

[drphilly]

Always keep accounts separate. Last time I remember it was 10K in a financial year.