VAT charged on purchase price?

[rhough2]

I've just purchased a second hand loft ladder, from a private seller in a town near me (so collecting it personally) in the same country (England), and I've been charged 20% VAT.

My assumption is this is an error as VAT was not mentioned in the listing and I made an offer that was accepted by the seller. Only when I received the receipt having paid for the item did I notice VAT was charged.

Here is the item: 127150886392

Have I missed something obvious?

Here's the transaction info:

£64.25

3 Jun at 12:12 PM

1 item£53.54

VAT *£10.71

Order total£64.25

*VAT collected on this transaction based on applicable laws.

[papso22]

That is weird, I wonder if the seller registered on ebay.com as any hint of something non UK can have a very odd impact on VAT.

[rhough2]

That's a thought, I'll contact Ebay anyway.

[sml192]

Is the seller registered as being in the UK?  If they are registered in another country then eBay are required to collect VAT even if the item is already in the UK at the point of sale. 

[rhough2]

Hiya yes private seller, same country, second hand item being collected in person. It appears from other posts I'm not alone in this experience. My accountant laughed and said simple VAT fraud by Ebay - I think he was joking but I'm not sure now!

[papso22]

Is your accountant implying that ebay is not passing VAT they collect to HMRC,  whether it was actually chargeable or not?

What you don't know is whether there are any non UK markers on the seller's account.

Having said that, it might just be the latest glitch!

[rhough2]

Mystery solved and you are all spot on - the seller created their account when resident in the Channel Islands, so even though they have now moved back to the UK as far as Ebay is concerned this is an international transaction.

It looks Ebay have applied the HMRC rules as rather a blunt instrument as VAT is not due on second hand goods from private sellers.

This begs an interesting question. If Ebay are charging VAT does that mean that Ebay have sold me the item? If so, does that mean Ebay is liable should a second hand item they sold be faulty?

[papso22]

No ebay has not sold you the item, they have collected VAT and passed it on to HMRC as per their agreement with HMRC laws.

Your seller needs to open a new account or this will keep happening.