VAT EXTEMP 85K GBP

[stabilitysneakers]

Hello 
We are a newly established company in the UK and we were told by the government that we are exempt from VAT on sales up to 85k gbp.
Despite this concession offered to us by the UK, we have found that the ebay charges 20% VAT on our sales, how can we rectify this situation?

Thanks

[papso22 · Accepted solution]

That screenshot shows eBay charging VAT on your fees.  Although weirdly your fees are in US$.  When you registeted was it on ebay.co.uk and are all you details for the UK?

EBay UK has to charge VAT on fees as they are VAT registered.

[stabilitysneakers]

Yes, all our information is registered in the UK, the reason why this sale is in USD is because I sold a book in the USA.
All our information is held by the UK company and the UK government.
We also sell on Amazon. Our information is the same as the information here. We told Amazon that we have an exemption up to 85k GBP. They examined our company and saw that we did not have a VAT registration. They do not deduct 20% VAT from us.

[61stephenuk]

You are not paying VAT on your sales,you are paying VAT on your fees which all sellers have to pay as eBay is a business supplying a service to sellers.

Private sellers have the VAT shown as inclusive in their fees

Business sellers have the VAT shown exclusive in their fees.

[stabilitysneakers]

I understand.
Thank you for your concern.
We were also selling on Amazon, Amazon was deducting an extra 20% VAT from us, we stated this and started not to deduct from us because we have an exemption for sales up to 85k GBP.

[papso22]

I don't think you do understand.   Assuming Amazon is charging you fees from a UK based entity,  they must also charge VAT on their charges to you.