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EBAY is collecting VAT on all my sales
Since 27th Jan eBay have started collecting VAT on all my UK sales. I am VAT registered and based in the UK. Nothing has changed as far as I am concerned but eBay are adamant that they need to do this and can't explain to me why. They didn't collect VAT prior to the 27th Jan.
Is this happening to anyone else and if so, how have you managed to get it to stop.
On all my sales I now get this message **Order total includes eBay-collected VAT. We have deducted this amount and will remit it to the UK Tax Authorities.
Effectively, I am now receiving 20% less than I used to prior to 27th.
Also, my VAT return will change because I now do not need to remit the VAT as eBay are already doing it
I just don't understand why.
Can anyone help, please?
hajool
OP7 months agoHello
Thank you for that. I am a partnership. No directors or anybody overseas. I have spoken to eBay several times. They tell me they are correct and if I have problem to contact HMRC. Will do that but can't see how they can resolve eBay's mistake!
I tried searching the main seller boards but didn't find any similar issues. Can you point me please?
papso22
Mentor7 months agohttps://community.ebay.co.uk/t5/Business-Seller-Board/HMRC-have-advised-us-that-your-seller-account-belongs-to-a/m-p/7993660#M342567
papso22
Mentor7 months agoIf you search the main seller boards you will find others that have had this problem. It's probably because ebay thinks you are belong outside the UK and they usually send you a warning email about it. This email says HMRC told them you were 'overseas' which they won't have done.
The real problem is that there seems to be no way to convince ebay they are wrong, assumuming they are, as you will see from the other posts.
If you are a limited company, then having a director from outside the uk could be a trigger, if you are a sole prop domiciled in the uk (as one of the posters was,) then it's a mystery.
I think the solution is that HMRC should tell ebay that they are wrong and that the ebay error is making everyone's VAT returns wrong. However given that it's not an HMRC error I don't think they will do this.
You need ebay to tell you why they think you 'belong overseas' so you can prove you don't. That will be very difficult. If you are trading as an individual you could try a Subject Access Request.