VAT Number for Business Account Odd Advice From Ebay Customer Support

[whoojamaflipruth]

Apologies, but this is a copy of a topic I raised on Member to member support plus an update.

I have received one of the You must change your account emails, so am looking into doing this.

My sales are way below the VAT threshold, so I would not ever need to register for a VAT number.

However, Ebay Customer Support via an email just sent me :

Please know that once you have upgraded the account to Business, then it is compulsory for every business seller to display your VAT ID Number on the account and on your listings.

So once you have upgraded the account, you can apply for the VAT ID.

Now if the HMRC is sharing to you that you do not need to apply the VAT ID, then please share the Screen Shot of their notification or response, so that we can exempt your account temporarily form the VAT ID Requirement.

This is bonkers.

Why would I write to HMRC to ask them if I need a VAT Number, if I can read their guidelines, which plainly state that I do not?

They also sent me a link for a telephone chat which I took up. Things then took an even more bonkers turn.

I have now been told that I can operate a Business Account without a VAT Registration Number, but that Ebay can write to me at any time, if I reach a figure pre-determined by them, but the Agent could not tell me what it is, as she didn't know!, and demand that I upload a VAT Number!

Does anyone actually know what the true situation is?

Thanks

Ruth

[cobwebcottage]

The VAT threshold is £90 k  p.a although Ebay panic and have asked sellers to register long before that. They also  calculate it on a rolling basis rather that a financial year. Unless you are looking to expand dramatically now you are a business seller, I wouldn't worry about it.

[whoojamaflipruth]

Thanks for the reply.

I was aware that VAT is on a rolling 12 months, but I cannot get a clearly defined set of rules for operating a Business Account without a VAT number. All I have found so far is Sellers being told that they have to enter one, even though they are nowhere near the threshold, and having all of their listings suspended!

Regards

Ruth

[cobwebcottage · Accepted solution]

I'm not VAT registered and have been trading on Ebay for years.

[therenewalworkshopltd]

I wouldn't pay too much attention to what they are telling you, it's quite clear that whoever wrote that, really hasn't got a clue what they are talking about.

The statement:  "Please know that once you have upgraded the account to Business, then it is compulsory for every business seller to display your VAT ID Number on the account and on your listings."

Is technically correct.  In that, if you are VAT registered, then you must display your VAT number.  But that's it, it goes no further than that.

As long as you follow the HMRC rules as regarding registering for VAT, then you have nothing to worry about.  You run your Ebay account as a business, end of!

[whoojamaflipruth]

Thank you for the super quick replies.

It is great to hear from peole that do have first hand knowledge.

Kind regards

Ruth

[ukmarc_gelen3]

Hi just a quick question in regards to the vat number on a business account 

Would this number be the unique tax reference number on the HMRC app 

[myriad*seller]

No, thats your UTR (Unique Tax Reference) number

The VAT number is on your VAT paperwork you were given when you registered 

[ukmarc_gelen3]

So sorry to bother you so I have that letter In front of me now when I applied to get my UTR number 

The tax reference I have on that letter is my NI NUMBER  

I can't see any other number on the letters I have 

If I contact HMRC will they be able to tell me the information I need 

[myriad*seller]

Are you VAT registered?

If not, then you don't have a VAT number... 

[61stephenuk]

On this account you are selling as a private seller,you shouldn't have a VAT number unless you have recently registered for VAT and will be changing to a business account

[ukmarc_gelen3]

I got an email asking to change to a business account which I'm thinking of doing but I know I won't exceed 90000 per annual 

So im unsure why I need a vat registerion 

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@61stephenuk wrote:

On this account you are selling as a private seller,you shouldn't have a VAT number unless you have recently registered for VAT and will be changing to a business account

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[therenewalworkshopltd]

As per previous posts.

Unless you are not uk based, or exceeding the threshold, then you do not need to be registered for VAT.

It is ignorance of support.  They simply do not understand what they are asking people and are getting things confused.

However, if you are a business, then you DO need a business account and DO need to be registered with HMRC as a sole trader/partnership/Ltd.

To put it simply, if what you are actually doing, is buying stock to sell on, then you ARE a business.  If you continue to trade without changing your account etc, you are actually trading illegally.

If all you are doing is selling off your own personal possessions, then you are not a business.

There is simply no half way house here, you are one or the other.

[ukmarc_gelen3]

And that's the information I needed to know many thanks for clearing things up for me 

[papso22]

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@ukmarc_gelen3 wrote:

And that's the information I needed to know many thanks for clearing things up for me 

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Judging by your previous sales you need to change to a business account. 

[isaa-shaza]

I’m at £76k, when would they ask me to?

[isaa-shaza]

Hi, I’m at £76k, when will they ask me to?

[therenewalworkshopltd]

I would suggest that you put that question into some context.

It is meaningless and asking on more than one post, will not help.

[papso22]

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@isaa-shaza wrote:

I’m at £76k, when would they ask me to?

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I am surprised they haven't asked you to register for VAT already.  They allow a margin for error and off ebay sales as legally, if a seller isn't VAT registered and should be, then ebay are responsible for the undeclared VAT on the ebay sales.  So they don't wait for you to get too close to the 90,000 threshold.

[isaa-shaza]

£76k turnover, when will they ask for. Vat number