Ebay and VAT

[micvos_64]

Hi all

Just to let you all know, Ebay is charging import VAT at 20% on items below £135                         WHY???????????????

The Government site GOV.UK  search for Notice 143 (link below) and go to section 2.3 you will see:-

https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-14...

2.3 Limits for Customs Duty and Import VAT

The limits for Customs Duty and Import VAT are:

• commercial consignments (goods you’ve purchased) of £135 or less are free from Customs Duty and not subject to Import VAT - this does not include alcohol, tobacco products, perfume or toilet waters as these items are excluded from the relief of Customs Duty and VAT at import is payable.

(There are more points for you to consider, so please read).

So is Ebay taking our money legally or illegally?

Regards Mike Vosper

[micvos_64]

Hi all

Just had a package arrive from Australia, have paid customs on the item.

The customs sticker clearly states about items £135 and below are not subject to Import VAT (Notice143)

So are Ebay telling the truth as according to Customs Duty online (gov.uk - Notice 143) and my package CHARGE sticker states the same thing.

So not out of date.

Regards Mike Vosper

[redwick1]

Yes I am trying to have a look and see if there are any other announcements by ebay.

The HMRC changes are later than the ebay announcement
In any case they will be correct
Have you tried contacting HMRC

[micvos_64]

Hi redwick1

Yes, however, have you? It is just impossible because it is all automated and you speak to no one, so I will try via "email" way.

BTW I buy and sell ancient coins, so are HS (commodity) code 9705 0000 00 (Import code) which are at 5% reduced rate of VAT, so Ebay are overcharging charging at 20%

See:-

https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad#imported-goods-accoun...

EXTRACT:-
Imported goods: accounting for import VAT

These are normally charged at the same rate as if they had been supplied in the UK. But if you import works of art, antiques and collectors’ items they’re entitled to a reduced rate of VAT.

So there are 3 rated Zero (VAT free), 5% or 20%

Therefore the reduced rate is 5%

Regards Mike Vosper

[redwick1]

If it is ebay you are trying to contact then top of the page under help and contact then scroll down the page to see contact details It will be Chat with us or Call me back. Ebay dont do emails

If HMRC then it is online or an advisor online unless it is urgent.

When you find an answer we would be very pleased to hear it

If you buy and sell as you say then you should be registered as a business for ebay and maybe HMRC

[micvos_64]

Hi

I am registered with HMRC as self-employed, do not sell much through eBay as WAY too EXPENSIVE with eBay charges of circa 10% and this includes postage charge! (what a cheek) then if paying by Paypal - circa 3% which is more often than not. So that's 13+% on a mark up of 33% is just too much.

Now we have also the VAT debacle of 20% Import VAT when it should be 5% on Numismatic items (coin) and anyway I can not find any evidence eBays Import VAT on items below £135 is correct.

THE NAIL IN THE COFFIN

[tobiasd4]

To add to your woes, when you are moved to ebay Managed payments, you won't be able to sell coins,
I believe they are changing this at some point, but don't know when.
https://sellercentre.ebay.co.uk/selling/managed-payments/?targetgroup=C2C

[redwick1]

You seem to have an old version of the Customs

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

There was a £15 exemption before Vat which has now been removed

[micvos_64]

You say old version but the Notice 143 clearly displays:-

Updated 13 January 2021

So old ?

[redwick1]

Yes, I am sorry I mis read that and looking at it again it needs further investigation.
We have had some members coming on and saying they have been charged Vat on items.