VAT on sale to other UK buyer When I'm not VAT registered

Hi, Long time eBay user (over 10,000 sales)

I'm registered as a Business user but do not meet the tunrnover threshold to be VAT registered.

I've just had another UK bidder contact me to say he has had a message from eBay following him bidding on an item to say that he is currently the high bidder and if he wins it would be subject to 20% VAT.

I have spoken to eBay and I'm being told that from this year eBay are collecting VAT one behalf of HMRC for some sales including sales from England to Scotland so if the winning bidder  paid me £100 if he wins the item including postage, he will have to pay 20% on top of this to eBay. I don't even know yet where the bidder is located but even if he is in Scotland this sounds like total rubbish to me !!!!

I sold 10 things to someone in Edinburgh yesterday and as far as I know he just paid what he bid + postage costs. I got the total - eBay selling fees and of course I am aware I pay VAT as part of those fees.

I do see if I look at a listing of mine it does say 'Starting Price Including VAT' however there is also an option within the listing tool to charge VAT as part of the price but I am not VAT registered so I do not select this. 

HELP!!!

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VAT on sale to other UK buyer When I'm not VAT registered

Reported as an unexplained glitch on some listings and additional VAT is not applied at sale end ... 

 

Basically ... VAT @ 20% is inclusive on all UK >< UK sales (between England, Wales, N Ireland and Scotland) ... 

but ... 

Even with an item showing as being located in the UK,  if either the buyer or seller uses an account that is or has been Registered outside the UK  site at any time, it will automatically trigger an additional UK 20% VAT  fee payable to HMRC/UK Government >

https://www.ebay.co.uk/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&st=2&pos=2&query=P...

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VAT on sale to other UK buyer When I'm not VAT registered

papso22
Experienced Mentor

To add, eBay CS told you rubbish, they are not collecting VAT on sales from England to Scotland. 

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VAT on sale to other UK buyer When I'm not VAT registered

being told that by cs is laughable! Next I will be having to pay vat to send to the isle of sheppey! Really it's not funny.

My business was a finalist in the ebay business awards 2023.
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