EBAY LEVIES VAT WHEN IT SHOULD NOT BE LEVIED

[nicklancaster1959]

For the attention of all Ebay buyers

Import VAT is charged at the same rate that applies to similar goods sold in the UK and applies to commercial goods over £135 in value, and on gifts that are over £39 in value. The value of the goods for Import VAT is based on the: basic value of goods. postage, packing and insurance.

EBAY SHOULD NOT BE CHARGING VAT ON THIS GOOD I WILL REPORT EBAY TO HMRC. The total cost is £30

[pixiesen2012]

https://www.ebay.co.uk/help/selling/fees-credits-invoices/taxes-import-charges?id=4121&st=12&pos=4&q...

In 2021, there will be significant changes to the collection of VAT on items imported into the UK and EU, as well as certain shipments within the EU and UK. We've outlined below how these will affect eBay sellers.

Sales into and within the UK

From 1 January 2021, the UK introduced legislation which shifts the responsibility for collecting VAT for online purchases from sellers to marketplaces such as eBay in certain circumstances.

1. eBay is obliged to collect UK VAT on goods sold through eBay to UK customers in the following circumstances:
   • Goods imported into the UK, with a parcel value of up to £135. Note that there is no longer a VAT exemption for small consignments up to £15
   • Goods of any value sold by a non-UK seller, and shipped from inventory stored in the UK. Sellers may still have UK VAT obligations, and should consult their tax advisors for further information
   If an order fits either of these criteria, neither sellers nor carriers should collect VAT from UK buyers. eBay will collect the VAT from the buyer and remit it to HMRC.
2. If a buyer requires a refund – cancellation, full refund, less than full refund, or partial refund – eBay will refund the VAT to the buyer in cases where eBay collected the VAT on the original transaction.
3. eBay is obligated to collect UK VAT on the full value of the transaction including shipping costs, as the shipping costs are considered part of the total purchase. The VAT on the shipping charges apply at the same rate as the item(s) in the shipment.
4. eBay will not collect UK VAT if:
   • Consignment values are above £135. In practice, the recipient pays import VAT to the shipping agent as part of clearing the package through customs
   • The buyer is UK VAT-registered and provides their valid UK VAT registration number. In these cases, eBay will not collect UK VAT and instead the responsibility to account for VAT will switch to the UK VAT-registered customer
   • Consignments of goods containing excise goods such as alcohol and tobacco are imported into the UK. More information: Importing excise goods to the UK from the EU

[nicklancaster1959]

This the definitive document, which includes GIFTS. https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-14...

[61stephenuk]

Purchases on eBay are NOT GIFTS and are subject to import/supply VAT as explained in your link

[nicklancaster1959]

One upshot from all of this is an extremely useful conversation just now with a Senior Ebay Exec where it was possible to explain how recent Ebay changes, including the managed payment system ie getting rid of Paypal for Sellers was unfortunately making Ebay increasingly less attractive platform for recreational buyers and sellers. Since the conversation was recorded I earnestly hope that the former convenience of EBay and Paypal will be resumed. Since I am NOT giving my banking details to Ebay's database. Purchasing from ebay is a recreational activity - it is not a business it is not essential to this particular member of some 9 years of membership. Best regards to all other sensible ebayers !!

[nicklancaster1959]

Well as I said to the Ebay exec, ebay will only see a very significant reduction in purchases for what are low value but numerous items from across the globe. Shame but something I am happy to walk away from entirely, as recorded with Ebay's exec. Very good that he listened with an open mind. Shame that the international contacts through Ebay will diminish. A great pity.

[pixiesen2012]

VAT is payable on everything, there used to be a low value items exemption, but that has now been removed and the VAT has to be collected at the point of sale, which is what ebay are doing, customs duty, which is a completely different thing, is payable on items over £135