VAT Restriction Despite Being Under the 85k Threshold?

[vene_laur]

Hi,

Just wondering if anyone else has come across this problem? Is it some kind of error? Despite being under the threshold by 11k, eBay have still decided to restrict my account. Customer service have esculated the problem to the account team, but just wanted to know if anyone else had experienced the same thing?

Kind regards

[wh_laptops]

My year end is from 1st Jul to 30th June which was 65k

[61stephenuk]

Your VAT year doesn't end it's a rolling 12 months and as rainbowtrax said "If your turnover was 86.5k from 1st Jan to 31st Dec then surely, at that time, you should have become VAT registered "

[ile136yz]

With VAT it is acessed on the rolling year.

Why not take a couple of weeks off selling on eBay when your turnover reaches, for example £70,000 to keep below the required VAT Registeration amount.

[rainbowtrax]

The issue now is that you've already gone over the threshold so I don't know how you go about dealing with that retrospectively. Your rolling year turnover then needs to drop below £83,000 before you can deregister. To be able to deregister, you also have to satisfy HMRC that your rolling turnover for the next 12 months will remain below £83,000.

[4_bathrooms]

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@rainbowtrax wrote:

The issue now is that you've already gone over the threshold so I don't know how you go about dealing with that retrospectively. 

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If it was a rolling turnover from January 2022 to December 2022 they need to register now and also pay the 5% penalty (5% of the VAT that was due). After 9 months the late registration penalty doubles to 10%.

[rainbowtrax]

Thankyou, I thought there'd be something in place to deal with it, just didn't know what.

[papso22]

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@sheba-knows-best wrote:

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@papso22 wrote:

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@sheba-knows-best wrote:

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@ldvintagegems wrote:

Sent from my iPhone

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I hope I'm not hammering home a point that you already have covered. But have you actually checked: seller hub / performance tab / sales - then custom the dates to give 365 days? This will give you what ebay considered to be your 365 day rolling sales. 

If this shows over 85k then really, I think you're own figures may be wrong. Ebay tends to be accurate. If these figures show below 85k then you have a very strong hand to put before ebay.

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I wonder if this is the issue?  The law is a rolling 12 calendar months but eBay uses 365 days?  

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Isn't 12 calendar months, 365 days? What am I missing?

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EBay may be using rolling days and not rolling months. 

[suwoo79]

Not in our case, we have been given 30 days to provide a VAT number, had we kept a closer eye on our sales figures we would have restricted them rather than go over the threshold, now we have suspended sales whilst we apply for a VAT number, we intend to drop back below the threshold and the de register for VAT, but what long way round.

[4_bathrooms]

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@suwoo79 wrote:

Not in our case, we have been given 30 days to provide a VAT number, had we kept a closer eye on our sales figures we would have restricted them rather than go over the threshold

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Interesting. Did you go over the threshold solely due to your eBay sales; i.e. you were only selling on eBay and nowhere else?

I ask because some previous posters (like the OP) have received demands for VAT registration numbers from eBay when their rolling 12 month eBay turnover was between £70K - £80K; i.e. below the actual £85K threshold.

[papso22]

You won't be able to deregister immediately.