BEWARE - EBAY NOW CHARGING VAT

[Five and In]

I received my Ebay invoice this morning and the amount they were charging me was about £150 more than I expected.
As I had changed my "package" with Ebay during the month, I assumed it was some sort of "glich" and phoned them to sort it out.

I was advised that as of 1st August, Ebay had changed the country that they do their billing from and as such, by law now have to charge 20% VAT on their services to anybody classed as a business seller and there is nothing the seller can do about it.

As I am not VAT registered, but self employed and classed as a business seller, in short I'm stuffed!!

I phoned HMRC for advice and the inbred, mutated twat that was advising, basically said "tough shit" and the only way to reclaim the VAT amount would be to go VAT registered as I will not be allowed to claim it back through my self assessments.
I will look into that, but do not think it's viable for me at this point.

When your Ebay invoice (if you get one) arrives, scroll past the total amount as they have shown the VAT details at the bottom where most of us would not be looking.

[littlewiggy]

They "have to" charge VAT my eye.

I'll believe that when Nelson gets his arm back.
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[derby1884]

littlewiggy wrote:

I'll believe that when Nelson gets his arm back.

Ah....I see you read that in today's Guardian, too

https://www.theguardian.com/commentisfree/2017/aug/22/toppling-statues-nelsons-column-should-be-next-slavery
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[Flaming Pie]

Nothing at all to do with VAT, but there is an interesting article in the 20 Aug 17 Guardian titled' 'l lost £1,165 to eBay fraudster when selling my electric guitar'. Could be worth eBay buyers/sellers on this forum taking a look at it. If it was me, l would have taken the Fender Strat to the buyer in person and let him open it in front of me.

[GrestytheLion]

My missus is a business seller on eBay, spoke with her accountant and was told that any vat costs would be added into her selling fees and consequently become an overhead against her profits.

In theory she would then have that returned by paying less tax.

[DySporting]

My listing fees have increased from 10p to 12p - I assumed this was the VAT being lumped in - figures work. I sell books along with programmes so I’m going to up my prices very slightly to try and accommodate. So a new pb goes from £3.85 to £3.99

[Five and In]

GrestytheLion wrote:

My missus is a business seller on eBay, spoke with her accountant and was told that any vat costs would be added into her selling fees and consequently become an overhead against her profits. In theory she would then have that returned by paying less tax.

Very true Gresty.
I suppose that in the long run, it will balance out because, as you rightly say, it can be offset against profits on the tax returns.
It just stinks that they get the interest on our money in the meantime and the initial shock of a 20% hike on charges was hard to take.

[GrestytheLion]

It is hard to take Five and In

I'm guessing as they pay little tax on their profits in the UK it's their way of showing they are good citizens by claiming that they are collecting VAT and paying into HMRC.

The fact that there is a VAT registration system in this country for those with a certain turnover feels irrelevant as eBay will now take the morale high ground in what they pay the government in VAT revenue.

[kenners46]

Does that mean as a business seller if i sell a football card for £1 ebay are now taking 33p (10% and 20%) of it and paypal 26p ?

[Five and In]

No Kenners.
The 20% hike is on their "services" and not the selling price.
A 15p listing effectively now costs 18p for example and whatever package you subscribe to will be subject to the 20% also.

[kenners46]

Noted, thanks for that