Why has Ebay started charging VAT on books bought from the EU when books are zero rated for VAT?

[anj943j]

Hi

Its not just the EU its all countries outside the UK. See my comment on this discussion:-

https://community.ebay.co.uk/t5/Buyer-Central/Is-there-now-20-VAT-added-to-EU-purchases-I-noticed-th...

I have reported the issue via live chat and am waiting for ebay's response - The law changed today so online market places have to collect VAT on behalf of HMRC but as you say books are 0 rated so should not be affected,It seems that Amazon and Abebooks have 0 rated books correctly but eBay have not.

On ebay It does not affect all book sales I am finding some from overseas without VAT still- especially if the seller is using the global shipping program but there is no clear pattern as to which overseas books have 20% VAT added and which do not.

If you want to report it go to help support, type in technical issue then go to chat and report the problem- it may help getting it fixed more quickly if more people report the problem.

[justabitoffun3414]

Thanks, I already tried the live chat but they didn't seem to understand
the issue, even though I spelled it out as clearly as I could. It would
have been easier for me to explain quantum physics to my cat.

[gl1500j]

I tried the same thing (ebay live chat) and got nowhere as well, plus it was going to be sent via global shipping so would I have been charged twice? I have filled out a GOV survey on the import information page and asked to be sent an email to comfirm whether or not VAT needs to be payed. My books were used ones if it makes any difference.

[rupertpukin]

I spotted this on a book which I bought from Germany earlier today. VAT had been added to both the cost of the book and the cost of the shipping. I spoke to someone at eBay, who was adamant that, since UK left the EU, VAT is charged on all items bought from an EU country. I pointed out to her that books (and other printed matter) are exempt, under VAT Notice 701/10. She wouldn't budge so, and insisted that VAT was correctly added to my invoice.

I then spoke to someone at HMRC, to confirm that there has been no change to validity of VAT Notice 701/10, and that books and other printed matter are still 0% VAT rated. This was confirmed to me by HMRC..

I have just come off an online virtual chat with another eBay employee. This was her reply:

"Edmund, I apologize for this inconvenience and hassle caused to you from the core of my heart. I would like to share with you that there is a temporary technical issue on site due to which VAT is being charged on book purchases. Please don't worry as eBay is already aware of this issue and will fully refund you the VAT incurred on book purchases. I would appreciate if you could upload the relevant documents on the below link for verification purposes: https://ocsnext.ebay.co.uk/ocs/mudcwf?deptName=UKCollectRemitRefund"

[rupertpukin]

PS Further to my post earlier (12.55pm today), I had a call-back from the eBay representative with whom I first raised this issue, this morning (16th Feb 2021), and who had been adamant that eBay were correct in adding VAT to any books bought by UK buyers, from sellers abroad, since 1st Jan 2021. She said that she & her colleagues were still looking into the matter. I pointed her to the live chat record which I have posted above (she could see it, herself, on her computer). She reiterated, then, that I should use the link to reclaim erroneously-charged VAT (which I have done - 3 books since the start of the year). I asked the woman on the phone if eBay would be actively refunding any UK buyers of books bought from abroad for this overcharge, who were unaware of eBay's mistake................and I was told that no, they would only do so if a complaint/application for VAT refund was made, by the buyer, about a specific item, to eBay.
Utterly ridiculous.

[anj943j]

Ebay have recently fixed the issue for books ( if listed in the books category) there is more info in this discussion:-

https://community.ebay.co.uk/t5/Buyer-Central/Is-there-now-20-VAT-added-to-EU-purchases-I-noticed-th...

However if books are listed in other categories or for other items which should be either 0 rated or subject to 5% VAT the problem remains and issues will have to be reported to eBay as they arise.

There is a much bigger issue in that eBay need to go through all their categories and check that the correct VAT rate is being applied, however I doubt this will happen unless someone shouts.

[rupertpukin]

Thanks. Though this happened to me this very morning (16 Feb 2021). Buying from a seller in Germany. Item was correctly listed in Books, Comics & Magazines category. VAT added, by eBay (not, to clarify, fault of the seller; but fault of eBay). First eBay representative to whom I spoke on the phone was adamant this was correct ('because of Brexit'). Backtraciked now. They really need to get their act together.

[anj943j]

I cannot see any books in my searches showing VAT for either either auctions (where it used to say +20% VAT will be applied to or buy it nows where the price on ebay.co.uk is 20% higher than the foreign ebay site.

Have you got any more info (without giving details of items you have bought) on books were VAT is being charged for books on ebay.co.uk, if so I will follow up with my contacts as well.

[rupertpukin]

Yep, sure. Happy to give you details of the item I just bought this morning, from a seller in Germany. VAT added, by eBay.
(PS Please don't judge me.............this might look pornographic............but it's actually a v collectable art/photo book; correctly listed under Books, Comics & Magazines category; it is, actually, I would argue, a book rather than a magazine.............but this distinction should have no material importance; as books, magazines, newspapers & any other printed matter are exempt from VAT in UK)..
Item number (eBay UK site): 284177623647
eBay link: (eBay UK site): https://www.ebay.co.uk/itm/Exhibition-in-Paris-von-Patrick-Margaud-Softcover-32-Seiten-Fotos-kein-Te...
Best Regards, and thanks for your help with this.
PS having checked my records, I have been charged VAT on 3 other book/printed material purchases from abroad since 1st Jan 2021.
Edmund

[anj943j]

Its a mystery why this is happening. Were all the items auctions where VAT was added after the sale? For buy it nows its easy to check- just look at the price on ebay.co.uk and then look at the price on ebay.de or ebay.fr etc. If VAT is being added to a buy it now the price on ebay.co.uk will be 20% higher.

At least you have a link to reclaim the VAT now.

[rupertpukin]

Yes, thank. Good advice, I'm not sure, to be honest. And, as you said in your earlier comment of Jan 1st, above, it doesn't appear to have happened in all cases. I have bought, maybe, c 8 or 9 books from abroad on eBay since Jan 1st (some from EU and some from US/Australia etc.). 4 of them had VAT added, and the others didn't. Like you, I can't see any pattern (in terms of EU vs other countries; BIN vs auction; Global Shipping Programme vs seller's own shipping). I only spotted it, for the first time, this morning; and then found the previous 3 2021 VAT-added examples after ploughing through my records. I have submitted a claim for refund of VAT for the four books which I was charged VAT for; but think it is, frankly, criminal, that eBay, having now (v v v late in the day) recognised the error and admitted their mistake, are not actively refunding every UK book/printed material etc. buyer who has been charged VAT for their purchases from overseas over the last 6 weeks. That must be a LOT of overcharged money, in total.

[eurobooksltd1]

I have the same problem, I reported it today, only to be told to contact each country and get a letter to them. According to the person in the chat, is not Ebay charging but each country.  I am going to opt out from GSP until this is resolved.