20% tax within UK?.

[petefromlb]

Hello,

I have an item listed for £489 plus £11 P&P.  The Buyer (based in UK) is interested in purchasing, however when in shopping bag, the price increses by 20% (even if within the UK). Do they apply VAT now on private sellers, or on mim. price?.

Would appreciate any help.

Thank you,

Pete

[john1297576 · Accepted solution]

"Do they apply VAT now on private sellers, or on mim. price?".

But you arn't a Private Seller? You are selling illegally and should be registered correctly. That might help sort out the VAT situation, if you registered correctly.

[petefromlb · Accepted solution]

I do agree that I should pay the VAT not the UK buyer on top of the final price.

[redwick1 · Accepted solution]

You can only pay the vat if you register as a business and the tax man

[redwick1]

You are selling lots of brand new items and should be registered as a business and possibly for VAt

That is what the 20% will be.

It is not clear how it works yet but if it is showing when the buyer goes to their basket then that is what they will have to pay

Where did you buy all those new items?.

Starting 1 January 2021, eBay is required to collect VAT on certain orders delivered to UK addresses:

• Orders up to £135 sent from outside the UK
• Orders where the item is located in the UK, but the seller is not a UK seller

You'll see the VAT included in your order total at checkout, and you can view and download a tax invoice from the Order details page in your purchase History

[petefromlb]

Thank you for your reply.

You are right. Not really clear as some items priced at £360 have no extra costs applied in the basket. So there must be a limit (I guess).

[redwick1]

I think it is something to do with country of origin

Vat has to be paid on items that are imported into this country.

We are still trying to find the answer with no clear help from ebay

[petefromlb]

I have forgotten to add that the buyer is from UK, so it's domestic transaction and it shouldn't be the buyer's responsibility to pay 20% on top of the total price. Really strange situation.