Should I fill in VAT box?

[bumblebeeknitting]

Should I update VAT box in listing?

I'm getting full amount paid, but shouldn't ebay take VAT first?  I'm not VAT registered as under the threshold,  but on the business listing I have,  it says inc vat when I enter the price.  

I tried adding 20% into the optional box below,  but when I sold one it didn't alter the amount in earned. 

I've tried researching this,  it might just be me but I find it really unclear! 

I can't find a right or wrong answer - it says ebay collects the vat from the buyer and remits it for sellers not registered,  but it can't be if I'm getting full amount, and I wasn't to make sure it is.

It is driving me crazy - Help! 

[sml192]

You do not need to enter any VAT details.  For UK to UK sales by a UK seller under the VAT threshold there is no VAT obligation. 

Ebay are only required to collect VAT under certain circumstances on sales where the item or seller are located overseas or if the item is sold to a buyer in the EU.

[bumblebeeknitting]

Thank you for the fast reply!

I thought VAT had to be paid on all products? If ebay are collecting it, why isn't it being remitted? 

I sell on a couple of other sites in digital form,  and they do collect and remit it, as the amount I'm paid is less the vat....

[sml192]

VAT only needs to be paid on products and services sold in the UK if the seller is registered for VAT or where the item or seller are located overseas.   Ebay won't, therefore, be collecting any VAT on your sales unless you sell to a buyer in the EU. 

Provided you are only selling to UK buyers then the other sites should not be collecting and remitting VAT on your sales.  If you are selling to buyers in the EU then they would be responsible for collecting and remitting VAT within the buyer's country at the applicable rate for that country, however, the VAT should be added to the price you charge not deducted from it.  The only VAT that you should be paying to those sites is on the fees that they charge, as with eBay. 

[bumblebeeknitting]

Thanks sml192, I will leave as it is and trust it's as it should be, I can't see any other choice. 

It was throwing me that the amount in the price box says inc vat.

It should say ex vat unless I've added a vat number in, I should think?

That seems to me that ebay are saying to the buyer "you are paying vat on this item" but instead of taking that vat as I expected them to (and they should according to what I've read) and remitting, they're handing it to me & I don't want it...because as far as the government would be concerned,  I'm the one charging and accepting the vat? 

On the other site for instance, I sell it digitally for £2.68, but the amount I put in the field box is £2.23, so they must take the vat. 

On ebay,  the amount I sell it for is £2.48, and the field box is also £2.48.

Its all confusing 😕 

I found this on ebay site;

• Sellers listing on eBay.co.uk and European eBay sites have the option to provide a gross price and separate VAT rate, so that eBay can determine the net price and correct amount of VAT to collect from consumers
• eBay will use the values provided by you when listing your items (gross price and VAT rate) to determine the net price
• eBay will then calculate the VAT payable by the buyer, based on the VAT rate of the item sold in the delivery country. eBay will apply VAT to any shipping charges at the same rate as the VAT applied on the item
• eBay will remit the net amount to the seller, and the VAT amount to the appropriate tax authority
• For non-EU/non-UK sellers, unless you have included UK or EU VAT in your pricing calculations, the VAT rate will usually be 0% and may be left blank
• Margin sellers may also leave the VAT rate blank. As eBay cannot apply a margin scheme, VAT needs to be collected on the full value of the item sold. If you indicate a VAT rate, this may lead to a reduction in the net amount you receive
• VAT-registered seller - As shipments between Great Britain and the EU are considered as export sales, in cases where eBay is not responsible for VAT, the prices will also be adjusted to show a net price to buyers. Buyers will still need to pay import VAT on delivery
• Where eBay has no obligation to collect VAT, e.g. an EU (or Northern Ireland) based seller shipping goods from within the EU to an EU (or Northern Ireland) based buyer, eBay will not carry out any additional tax calculations and the selling price will remain the same as at listing. Sellers who are registered under the EU One Stop Shop scheme will need to account for VAT at the appropriate value on their sales

"eBay will remit the net amount to the seller, and the VAT amount to the appropriate tax authority"

As mentioned,  I'm not VAT registered,  and there isn't the option on my listing to put a basic figure in. It says in brackets next to the field box "inc vat"...

If it didn't say inc vat,  and I was seemingly getting whole amount, I wouldn't be so concerned as I would assume neither I or ebay are taking it from customer 🤷‍♀️

[susapric-68]

Even though it defaults to 0 i always add a 0 into that box, been a time when ebay glitched and it added the full 20%. took a while to notice why my sales had dropped

[bumblebeeknitting]

Mmm. I'll try adding a zero to the most popular one and see if it makes a difference when I sell one 🤞

[bumblebeeknitting]

No, it won't allow me to add a zero at all.  See screenshot of fields.

[therenewalworkshopltd]

As has been said by a few others, if you are physically based in the UK and are not registered for VAT, whether or not you put an amount in that box is immaterial.

The only time that VAT will be charged to your customers is if you have given Ebay your VAT number.

As regards the other site, I think you are probably misunderstanding what you actually being charged.

Which site?  Or if you don't want to say, then you need to ask them for a breakdown of what you are actually being charged.

[bumblebeeknitting]

Yes I probably am over thinking it. As o said,  eBay have next to the field of the amount "inc vat" . EBay have caused the confusion by adding that, it should just be blank and they add it after if necessary.  Attached are screenshots from other site - lovecrafts.  They make it much simpler to understand and make the choice with clear descriptions.

[bumblebeeknitting]

Screenshot 2

[bumblebeeknitting]

Screenshot 3

[bumblebeeknitting]

Screenshot 4

[magpiecorner1]

It's actually illegal to add VAT if you are not registered.  How would you get the VAT money - a tax on purchases - to HMRC, without being registered.

If you were VAT registered, you would add 20% to you retail price, and periodically you would send HMRC the balance of VAT you have received less any VAT you have paid on goods bought, and other business bills such a accountant fees and heating costs.

Well worth having a good read through the HMRC website and also sign up for HMRC webinars and question and answer sessions.  I'm still doing this after nearly 35 years of being self employed, both VAT registered and not.  Also worth booking a couple of hours with your accountant, he can guide you through the whole VAT and a whole host of other stuff.

Best of luck!

[therenewalworkshopltd]

You do realise how easy it is to find the website that published that.

And then I went back as I just noticed your first post with the name.  🙂

However, for that particular site, they are classing it as them doing the transaction and not yourself.

Therefore, for whatever obscure reason, they have decided that they are responsible for collecting VAT.

Though from what I can gather, though you are able to choose a price, you are effectively giving them permission to sell to other people.  Which is why they are making the sale and not you.

So at a guess, they are basically giving you a commission.

But I haven't dug that far into it.  I would however advise that you fully understand what you are actually doing there.

Irrespective of this, it DOES NOT apply to Ebay and 99% of other websites.

[bumblebeeknitting]

Exactly! That's why I panicked when I knew the ebay sale amount said "inc vat", then when I sold something and I was paid it was for the same amount!

I haven't put a vat number in as I'm not registered,  so expected the amount I received in the sale to be less the vat....I think ebay have the set-up wrong 🤔 

[therenewalworkshopltd]

No, Ebay don't.  It's the other site with a very odd setup.

[bumblebeeknitting]

I do realise how easy - and I mentioned in my reply. Lovecrafts. 

Yes I suppose it is like they're paying me a commission. 

Ebay do say they remit vat. But can't see how;

From ebay site;

"eBay will remit the net amount to the seller, and the VAT amount to the appropriate tax authority"

I definitely don't have the turnover to be vat registered, and never will.

So don't want to charge vat myself or collect, but happy for selling sites to collect and add on, which is what it looks like they should do to me at least. 

[therenewalworkshopltd]

You are literally worrying about nothing here.

Forget about VAT and Ebay paying it.  Until you are VAT registered, you will not be collecting it.

What you are reading, is for overseas sellers.  Or you selling to other countries.

If you are ever in the situation where Ebay needs to collect the VAT, they just will!  It literally doesn't matter what you put in that box on the listings for VAT.  It is only applicable, when you are VAT registered.

[bumblebeeknitting]

You're right.  I am. 

I don't think it would have even been on my radar if ebay hadn't put "inc vat" next to the amount box, and advertised that the prices buyers see are inc vat.

That's not actually the case for a lot of small businesses like me, so they shouldn't have that on there unless I've added a vat number.  

I have driven myself crazy trying to work this out with lots of conflicting "official" info 🙄