ebay charging VAT on non VATable items - or "delivery fee"?

[hillviewer82]

According to the 'Lean More' tab:

eBay has introduced a delivery fee for certain items purchased on eBay.co.uk, and charges VAT on the eBay delivery fee where the fee applies.

If eBay is obliged to collect VAT under the deemed reseller rules, VAT will be collected on the full value of the item plus the eBay delivery fee in accordance with applicable laws.

Here's the transaction:

£15.78

£2.45

VAT *£0.71

Order total£18.94

VAT is 20%, but of what?  It's a book, so zero rated.  If it's the 'delivery fee' why isn't that shown as part of the calculation?

I doubt The Pinks read these boards any more as it must be too depressing....is the 'ebay Xmas party fee', sorry 'buyer protection' scam VATable?

[jonatjonatjonat]

Its on the postage label.

[hillviewer82]

But 20% of £2.45 is £0.90, not £0.71.

[4_bathrooms]

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@hillviewer82 wrote:

But 20% of £2.45 is £0.90, not £0.71.

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I think this is an issue with the way eBay is displaying the information.

The book was sold by a private seller. If that is the case eBay charged a buyer protection fee (4% + 72p inc. VAT) which is actually (3.3333...% + 60p) + VAT as well as a "Simple Delivery" postage label. The VAT on the buyer protection fee would have been approximately 20p (with rounding) so it looks about right.

The VAT is the VAT levied on the BPF & SD label; no VAT has been levied on the book itself.

[sml192]

The Buyer Protection Fee and Simple Delivery prices both include VAT. 

[4_bathrooms]

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@hillviewer82 wrote:

But 20% of £2.45 is £0.90, not £0.71.

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Just to explain:

20% of £2.45 is 49p.

The postage label price is shown excluding VAT but the book price is shown inclusive of the buyer protection fee which was approximately (£14.49 + 4%) + 72p including VAT. The buyer protection fee was therefore approximately £1.29 inc. VAT (£1.08 exc. VAT); i.e. 21p: 49p + 21p = 70p. Due to the BPF actually being ((3.3333...%) + 60p) + VAT some rounding happens which means totals can be a penny or two out (the VAT on the BPF was therefore 22p).