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VAT now payable on previously owned items brought from a private seller?
Summary: golden-horse1 expressed surprise at being charged VAT on a dog training aid purchased from a private seller on eBay, noting that the VAT was not reflected in the initial offer plus postage costs. They later realized that eBay is adding VAT to the buyer protection fee and postage costs. tobiasd4 explained that eBay must charge VAT on fees and that VAT is included in the fee breakdown. golden-horse1 questioned the legality of not displaying the total upfront, as VAT is generally not charged when buying from a private seller who doesn't profit. They referenced UK law and eBay's policies, which suggest VAT should be included in the order total at checkout.
I've never seen this before.
I've just brought a dog training aid from a private seller. It was at a considerable discount to the original retail price and they accepted my offer. When the invoice came in I noticed that the total was not the same as the offer + postage costs listed when I made the offer, and on closer inspection it seems eBay has unexpectedly added a little over £1 in VAT.
I know it's exactly a lot but I've never seen this before and it's come at the end of a string of transaction issues with eBay. Is this a new normal, you now have to pay VAT on previously owned items or is it yet another example of eBay apparently having problems?
Edit: the item is in and being sent from / to mainland UK.
Edit: OK, I've figured it out. It seems eBay is NOT showing VAT at the offer stage, and VAT is being added to the displayed postage + to the buyer "protection" fee if the offer is accepted.
tobiasd4
Mentor5 days agoAs a business ebay has to charge VAT on their fees.
What you seeing is VAT on the buyer protection fee.
However VAT is included in the fee, but ebay break it down on invoice.
If you buy from non UK seller, you pay VAT regardless if item is new or used.
golden-horse1
OP5 days agoI understand that eBay charges VAT on their fees, what I don't understand is why they are not upfront with what the total is at the checkout. Also I'm pretty sure that hiding the final price like that is illegal when it comes to dealing with consumers.
Also under UK law VAT is not chargeable when there is no profit, i.e. when buying from a private seller and the seller makes no profit.
According to this link, eBay acknowledges that VAT is not payable on some items and they also state that the total is given up front, i.e.:
tobiasd4
Mentor5 days agoAs I said VAT is included in BPF you see when buying.
Ebay confused things by breaking it down on invoice.
You are paying ebay the BPF, not seller.
Purchases from business sellers are not subject to BPF.