charging a seller fees on VAT and also charging a seller VAT on VAT

[mediumspal]

Hello.

I appreciate that the eBay rules about eBay charging a buyer VAT have changed (due, in short, to Brexit) So now my buyers in Germany get charged VAT, eBay adds it on to my sales price and I assume eBay passes it on to HMRC as they do not pass it on to me in the amount that they give me. However I am now finding that eBay are charging me fees on an amount which includes the VAT element and then they are also adding VAT onto the sub-total and then charging me that. The 'fees based on figure' includes an element of VAT which I do not receive and have no control over and then having added on regulatory operating fee etc etc they come up with an amount described as total fees and then add VAT on to that.                                                                                          Can they charge me fees on VAT ?                                                                                                                                                               Can then charge me VAT on a fee calculation which has an element of VAT?                                                                         I thought that it is illegal to charge VAT on VAT?                                                                                                                                    PLEASE HELP! I can provide the actual figures/numbers that I am talking about, if that helps. Many thanks. Gordon.

[papso22]

They are charging fees based on the total the buyer pays, even though that doesn't all get passed to you.  As they process the entire payment that makes sense.

EBay's fees have to have VAT added because their services are taxable.  That's not them charging VAT on VAT that is them charging fees based on an amount that is made up of a number of elements, one of which is VAT.

It's the same for a domestic sale by a VAT registered business.   You charge the buyer an amount including VAT,  eBay base their fees on that amount, and then have to charge VAT on those fees.  Different transactions different VAT.  

It's perfectly legal and set out in the fee policy.

[john1297576]

Your buyers in Germany are being charged GERMAN VAT which I believe is 19%. It is collected by ebay and paid over to the GERMAN TAXMAN, not HMRC.