The matter of how E bay deal with VAT on exports to Europe when they are sent with the Global shipping service . We have made a recent sale into the EU and E bay have paid us the sale amount less 20% VAT. The item was sent to the E bay shipping center at Shipley and e bay then sent it on the the EU country. The invoice received from E bay stated that they E bay are the buyer. We have therefore sold it to E bay and they have sold it on at a price which covers the shipping and the VAT as it is applied in the EU. Now it we export an item we can as an exporter sell the item net of VAT provided we have proof of export. If we send the item as a parcel the shipping company provide us with the relevant documents to allow us to do this. If it is a large machine when we deliver to a Port we then are provided with documents from the freight forwarder used. With the Global shipping service we are delivering to a UK address and there is no paperwork provided which HMRC will accept apart from the name and address of the person receiving the item, this is not proof that the item has been exported. We can not therefore sell the item net of VAT. We are therefore selling the item at 20% less that the actual price it made on the E bay platform as E bay have not paid us the VAT and we cant not zero rate the item. The fact that be buyer is in the EU does not matter we still need proof that is has left the UK. When any item is sold to a buyer in another country it does not mean the item has left the UK so all sellers using this service are out pf pocket by 20%. This may not matter to some but it will if they have an inspection from HMRC for a VAT audit because the missing VAT will have to be paid. I have taken the matter up on the phone with E bay and I have received an e mail telling me proof of export will be sent but this has not been done.
