Paying VAT on listing and FVF

[ketogenic-essentials]

I'm a newbie business seller, so apologies if I'm being daft,  but is it usual to be charged 20% VAT on listing fees / shop fees and FVF.  I'm a micro business so not VAT registered.

Thanks in advance.

[sml192 · Accepted solution]

Yes, as a UK VAT registered business eBay are required to collect and remit VAT on all the fees that they charge to sellers (private aswell as business) and buyers.  VAT registered sellers/buyers can claim the VAT back. 

[ketogenic-essentials]

Aha, okay. Thank you. As a private seller previously the VAT was included in the fees so it wasn't obvious. As a new business seller I made my first sale today and looked at the fee breakdown. I just wanted to check that this was normal and I hadn't done anything in error when I set up my account.

[therenewalworkshopltd]

You might want to actually look at registering for VAT.

I can see that your selling food items and guessing, that they are zero rated.

If so, then it could be worth it, as you will then be able to claim the VAT on all your purchase and costs.

[ketogenic-essentials]

That wouldn't be appropriate for me. Whilst I will have to pay VAT on my eBay costs, my purchases are mainly VAT free.  

[therenewalworkshopltd]

Fair enough, but if your sales are zero rated, then you will be entitled to a refund from HMRC every single quarter.  Worth investigating.  Speak to your accountant about it.