Will ebay report to HMRC after a partial refund?
Summary: In the discussion initiated by m7mda7md7sien, they raised a concern about whether eBay will report their transaction to HMRC after issuing a partial refund. sml192 participated in the conversation, though no specific details or conclusions were shared in the content.
Hi guys,
A quick question, please.
I sold only 1 item: new laptop for £1700 + £20 delivery fees. That triggered the HMRC notification and I have supplied my NI number fine.
Now, If I partially refund the buyer those £20, will eBay still notify the HMRC in January or not?
I just don't need the hassle of these communications and reporting with HMRC and I am OK with refunding the £20 if this will skip the notification.
Anyone knows, please?
Thanks so much
3 comments
sml192
·3 months agoNo, if your total sales for the year after the deduction of any refunds ends up being less than the threshold (£1,707 for 2026) then eBay would not be required to report your sales to HMRC.
You may be under the threshold anyway if you purchased the postage through eBay as those costs are not included in the calculation:
'Your total sales for the year are calculated based on the full amount received for your sales transactions excluding:
Cost of shipping labels purchased on eBay
VAT collected and remitted by eBay
VAT charged on fees
Amounts deducted by eBay for fees, coupons, cancelled or deleted orders
Returns'
From HMRC's internal manual:
'IEIM901740 - Determination of Amount
Reporting Platform Operators (RPOs) are required to report the total Consideration paid or credited to the Seller as well as any fees, commissions and taxes that are withheld or charged by the RPO. The amount of Consideration is the amount that is actually paid or credited to the Seller after the deduction of any fees and commissions etc, which should be noted and reported separately.
Since Consideration is defined as being ‘paid or credited’ to the Seller, the amount of Consideration should be calculated on a ‘cash basis’, i.e. the amount received by the Seller in a Reportable Period after deducting any refunds or cancellations made in that period.'
m7mda7md7sien
OP3 months agoThat sounds great. Thanks a lot for your reply.
It triggered the message as soon as the buyer paid. Then, I paid for the postage through ebay. The net order earnings on ebay is £1699, however, the year-to-year total still shows as £1719.
peverilbuyer
·2 months agoYou shouldn't worry anyway - it's clear that you're not trading if it's just one computer so HMRC are not going to be looking to get tax from you. The thresholds (item numbers or value) are just there as 'alerts' to HMRC to try to spot those making money as a side hustle and not declaring it.