17-06-2021 9:56 AM
I have tried to take this up with Ebay as an 'International' entity, but can not get a rational response beyond "the Uk now has to pay VAT on goods arriving from the EU".
I FULLY understand that - BUT - Goods purchased from the EU SHOULD be '0' rated for VAT, ie, discounted to the value of the relevent VAT - generally +/- the same 20% we, in the Uk are obliged to pay.
As far as I can establish items listed on Ebay DE/IT/Fr ( etc ) - as occurs in the Uk - are listed "inc of VAT". acording to Ebay's own information.
Therefore an item listed on Ebay DE is listed with the relevent 20% (EU) VAT included in the (end of ) listing price for the 'winning' bidder. Uk buyers competeing with EU/German bidders are seeing an 'end price' - say €90, the same as EU/DE bidders, which is inclusive of (their) EU VAT. Uk buyers, if winning the item are then being charged an additional 20% VAT for the Uk revenue by Ebay, but the 20% German VAT is also being applied so a Uk buyer is paying - as far as I can see - 40% VAT ?
EU sales to a Uk buyer should be '0'rated for VAT.......one wonders where the EU/Ebay DE VAT is going? - possibly to the seller initially, who may or may not be being charged ( as well ) as part of their transaction.
I can not seem to get past the "first line of defence", ie, the 'general advice' level of Ebay "Help" representatives, who seem to have a very limited grasp on the issue or what an EU/UK '0' rate "at source" might be.
Are there any other buyers from Europe out there who take the same view or am I failing to see a simple /justifiable explanation ( it would not be the first time! )
Indeed, it would be very useful - should there be USA/Canada based Ebay users who purchase from the EU based sellers what the proceedure is for having their purchases '0' rated / discounted for (EU) VAT at point of purchase ? is it discounted within the checkout or in the listing price which they see ?
Why do you think that imports from the EU to the UK are zero rated for VAT?
Youll be charged an extra 20% VAT at checkout, eBay collect this and pass it on to HMRC.
Because VAT is charged by Ebay via it's EU platforms for payment to EU states. It is also now charging VAT "on behalf of" the Uk. It is a matter of fact that EU VAT is not chargeable for Goods for Export from an EU State to a 1/3 Country, which we now are. Goods for Export to a 1/3rd Country should be '0' rated and any taxes due charged either by agreement - which is what Ebay are doing on behalf of the Uk Govt. or at the point of 'Import' ( which is overridden by the Ebay process for items below €150 ) Therefore Ebay are charging EU VAT at 20% and then collecting 'another' 20% on behalf of HM Gov, so the VAT is being charged twice. At the point of 'sale' via Ebay De / Fr / It etc. for sale to a Uk based bidder, the End of Listing price should be discounted by the value of the VAT - as I believe was ( and may still be the case ? ) for buyers in USA etc when eligible to bid/buy via EU promoted Ebay sites..
Worthy of note too.......Uk Sellers to EU buyers should also be '0' rating the item for VAT in the 'list price', ie. not showing a price inclusive of Uk VAT albeit Ebay.co.uk, will ( or should be ) adding the relevent EU State VAT at point of sale to forward to the EU State under "new" post 01/07 rules. Again - Ebay Uk should not be taking UK VAT AND EU VAT or the same double charging of VAT will apply.