just bought on eBay and I saw suddenly a “UK VAT added to price” for the first time is this correct

[laugb2001]

Hi,

I just bought an item on eBay and I saw added to the final price before payment a "UK VAT added to price" to a value of 20%. I have never seen that before in more than 18 years on eBay. The seller is in UK and I am also in UK. Is this correct and have I really to pay it?

thanks.

Lau

[ncee1405]

''Import VAT is required to be collected by eBay as it is a legal requirement. Import VAT is due on ALL sales from overseas, not just eBay sales''

So was I wrongly informed that a purchase from China would not incur VAT as long as the price was below £15?

[ile136yz]

VAT is charged on the full amount, if the item is imported into the UK or the Seller is Registered abroad (even if the item is warehoused in the UK).

The Customs Import Duty used to have a starting point of £15, but not anymore.

NB.  The Customs Import Duty tax and the VAT are two different taxes.

[myriad*seller]

---

@ncee1405 wrote:

''Import VAT is required to be collected by eBay as it is a legal requirement. Import VAT is due on ALL sales from overseas, not just eBay sales''

So was I wrongly informed that a purchase from China would not incur VAT as long as the price was below £15?

---

Yes, you were wrongly informed. Import VAT is payable on all items regardless of value. The £15 limit was removed when we left the EU. VAT is calculated on the total of item price + postage so you pay 20% on top of your total order value inc P&P.  Import duty is also payable on items over £135 (or thereabouts) and again is calculated on the full order value inc P&P. 

[Anonymous]

The answer to this is simple. As soon as the VAT is  added at checkout you close the sale and look elswhere until this mess is sorted out. I am going with the consumer protection act under unfair trading regulations 2008 which states that vat should be included in original price. 

[jadie13910]

Hi jacquful,  I completely see what you are saying and I agree - the only problem is - only the seller can cancel/close the sale, in my case the seller totally ignored my request and threatened to put a negative "unpaid item" against my 100 % feedback and I was informed by eBay that ONLY the seller could cancell the transaction and I could do nothing - which eBay and the seller refused to do - It seems crazy but Amazon ( and other online sites ) seem to manage without this problem ( what you see advertised is what you pay ) but not eBay ! If I buy an item from say Marks & Spencer - EVERY item of clothing, underware, footware and the like are ALL manufactured in China, Hong Kong, Korea, Thailand, Mexico etc., etc., and they seem to manage it - what you see is what you pay ! 

The bigest problem on this forum is the so called " Community Experts " Completely fail to see the point I am trying to make - and I get accused of " stamping my feet " and generaly being " abusive " to these so called " Community Experts " which simply is not the case - They don`t seem to get it that most people do not want to have to " check this and check that" in order to purchase an item - Hence, I now use eBay far less and use Amazon more and more. I do hope the " Community Experts " are reading this !!!!!!!!!!!!

Thanks for your input.

[myriad*seller]

eBay are required to do this BY LAW

I fail to see what it so difficult to understand here 

HMRC require them to do this, I am sure they'd rather not - as it costs eBay huge amounts in VAT admin

This is not Sales VAT, this is Import VAT and eBay are required to collect import VAT by law. It also does not have to be included in the sale price as it cannot be calculated until the buyer checks out and chooses the delivery address. Different delivery addresses attract different import VAT rates. 

You are correct when you say prices shown to the consumer must include UK sales VAT. But this isn't UK sales VAT it is overseas import VAT, and this does not have to be included in the price as import VAT is not the same as sales VAT.

You can go and find a solicitor who will tell you the same, but it will cost you to find out what you are being told here is correct. 

[jadie13910]

Amazon also sell/import some of theire items ! so how come they sell for the advertised price EVEN if it comes from for example China  ????

Both eBay and Amazon are NOT selling you the item - But you buy the item THROUGH them, they are the agent or middleman - but it is the same , one can the other can`t - Why ?

[myriad*seller]

Because the tax laws set out by the UK government require them to collect the import VAT by law 

This link explains the law, and why eBay are legally required to charge you import VAT on top of the advertised price

I quote from the link.....

"From 1 January 2021, eBay will be legally required to begin collecting and remitting VAT for UK imports. From that date, eBay will have to charge buyers the applicable VAT amount directly and remit this sum to the relevant authorities" 

and 

"

The changes at a glance:

• From 1 January 2021, eBay will start to collect and remit VAT for UK imports on all consignments with a value of up to £135. There will no longer be a VAT exemption for small consignments up to £15.
• In cases where the seller is a non-UK business and the goods are already in the UK, eBay will collect and remit VAT for goods sold to consumers within the UK, regardless of their value.
• Sellers should begin listing the applicable VAT rates on all their existing and new listings as soon as possible.
• From 1 March 2021, eBay will make it mandatory to add the VAT rate on all UK and EU sites when listing items." 

https://www.ebay.co.uk/sellercentre/global-sales/2021-vat-changes 

[jadie13910]

And Amazon ??

[myriad*seller]

This is the Amazon policy 

https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=GVGNK597JQE4A423

You will note it says 

"For certain destination countries, Amazon.co.uk will estimate and collect an import fees deposit during checkout. These funds will be used to pay import fees on your behalf to the appropriate authorities, when your package reaches the destination country. The estimated import fees deposit will be displayed in the order summary in the checkout.

If an estimated import fees deposit isn't displayed in the checkout order summary, additional charges for customs clearance will have to be borne by the recipient. "

So Amazon are also collecting the VAT they are required by law to collect on lower value items. Items over £135 are charged VAT and additional import duty by the importing country before delivery, in the same way they are on eBay  

[myriad*seller]

This is the link to the government website that explains why you are being charged import VAT on purchases from overseas or from sellers located overseas when goods are in the UK  

https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk

[myriad*seller]

---

https://www.instituteforgovernment.org.uk/explainers/tax-brexit

"Goods ordered from a retailer abroad

The rules for goods ordered from a retailer depend on whether or not the goods are:

• worth £135 or less, and
• not alcohol, tobacco or perfume.

If they are, then no customs or excise duty will be payable. VAT will be payable, but it is the responsibility of the foreign retailer to register for VAT with HMRC and charge its UK customers VAT as part of the purchase price (just as if a UK retailer were selling to them). The UK purchaser should not have to do anything when the goods arrive in the UK.

If they are worth more than £135 or contain alcohol, tobacco or perfume, the UK consumer has more to do. The foreign retailer is not required to charge VAT or excise duty (whether at the UK rate or its own) on the sale. Instead, the UK consumer must pay HMRC the tax owed. Usually, the postal service or the courier will pay HMRC on the individual’s behalf, then require the individual to repay them before the goods are released. They may also charge an administration fee for this service: for example, Royal Mail charge £8 per parcel, while some private courier companies charge substantially more."

---

[myriad*seller]

https://www.lawsociety.org.uk/en/topics/brexit/vat-after-brexit

Law Society guidance on the new import VAT rules 

[jadie13910]

I give up ! How hard can it be to purchase two coins through eBay for the advertised price - only to find yourself in an ENORMOUS wrangle AND in danger of losing ones 100 % feedback rating since 2001 through no fault of your own ?

Anyway this is my last post on this subject - I am sick of it  

[myriad*seller]

If you buy them from the UK, from a seller located in the UK then the price you see is the price you pay

If you buy coins from overseas or from a seller located overseas then you pay import VAT and possibly import duty if the items are over £135

Import duty and VAT are calculated from the total of item price + P&P 

eBay are not to blame, ALL online retailers are legally obligated to charge import VAT 

[dodgeram-durango]

The whole point of this RANT is to get Ebay to alter their ways and make it equal for UK based sellers as they are being undercut by foreign business on prices till THE TAX is added at checkout with NO WAY of CANCELING the BUY!

 A totally fair price structure with all quoted prices on an even keel!

[purveyor_of_tat]

Ranting here will do no good. It is better heed advice on how to buy on eBay.

Buyers are best of placing items into their baskets and then going to the checkout. If the price displayed at checkout isn't to their liking, items can then be removed from their basket.

If the seller is registered outside of the UK or they based outside of the UK, VAT (import/export duty) will apply – even if the item itself is in the UK.

Click on the seller's feedback score to go to their feedback profile.
1 – Check their 'based in' location.
2 – Click 'view items for sale' on the right.
3 – Scroll half-way down the left-hand side bar to find 'seller information' to check their registered location.
4 – View on an item for sale and check the item location.

[Anonymous]

A solicitor is not needed. Its trading standards that have the authority to
act on this. The whole point is the consumer protection laws in uk that are
being contravenened as the retail price must include VAT and not added in
retrospect which is misleading.That contravenes the fair trading act.
Simply put it is illegal. There is going to be a debate in Parliament soon
regarding online sales and of course these huge companies that are not
paying tax.

[Anonymous]

Same here. I will be informing trading standards of ebays actions and let
them deal with it. In future if any vat is charged retrospectively I will
pull out of the sale .

[myriad*seller]

You don't think eBay have solicitors who have ensured that this is what eBay are legally required to do?

UK Sales VAT must be included in the price

Import VAT cannot be added until the destination of the item is known, which is not known until the buyer goes through checkout, as the duty/VAT is different depending on the destination of the item

But you go ahead and waste trading standards time, and they'll tell you the same

This is NOT UK sales VAT  this is import VAT and is legally added to the price by eBay

But you clearly won't listen until TS confirm what you are being told is true, so go and waste their time to be told the same as you are being told here if it makes you happy.