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So not out of date.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

[ruby*tuesday · Accepted solution]

Is Legal since Jan 1st. EBay collect the Import VAT and send it to HMRC. See ANNOUNCEMENTS to the right of this Page.

[micvos_64 · Accepted solution]

Hi ruby*tuesday

eBay announcement dated jan 1st I can not seem to find!

However, I have been through all I can find in gov.uk and can find no requirement for eBay to collect VAT for HMRC.

Please point me to the HMRC import VAT to do with this.

Thank you.

Regards, Mike Vosper, Numismatist

[papso22 · Accepted solution]

Have a look at the main seller discussion boards, loads of threads, information and speculation on those.

[micvos_64 · Accepted solution]

Hi ruby*tuesday

Discussions are not what I need, the facts are, so please point me to HMRC legal requirement for Import VAT that eBay is charging, as far as I can see no legal requirement exists.

See my reference to HMRC Notice 143 above.

also eBay are charging 20% on antique coins over 100 years old, this is not correct as Numismatic items (coin) are subject to a reduced rate of Import VAT of 5% - again it is in the above entrys by me.

Regards Mike Vosper, Numismatist

[redwick1 · Accepted solution]

That reply was from papso22 not ruby*tuesday

As papso22 says there are discussion groups trying to work out what is going on.
There does seem to be a problem

If you dont want to read the discussion boards to find out then contact ebay or HMRC
They are the people who should be able to give you the facts

They are the people to deal with if you are sure you have been overcharged

[micvos_64 · Accepted solution]

OPS

My mistake, sorry redwick1 will have a look at discussion boards, loads of threads, information.

As I said you only have to look at HMRC to find the fact, eBay seems to think that have to collect Import VAT - it is NOT a listed requirement that I can find.

Regards mike Vosper, Numismatist

[papso22 · Accepted solution]

There is no import VAT under £135 because the VAT is now sales VAT accounted for by the seller, it's the same amount but different terminology. Import VAT was payable by the buyer direct to HMRC on import, sales VAT is now paid to the seller by the buyer in the sales price and the seller then accounts for it to HMRC.

[micvos_64 · Accepted solution]

Hi papso22

That is incorrect as Sales VAT in the UK is the seller's responsibility for them to pay, as is the sellers in the EU, on any value.

If you are VAT registered you would need to account for VAT on the VAT return - THAT IS NOT EBAYS JOB.

Now I was VAT registered in numismatic which has VAT on the profit only NOT the total value (Global Accounting) sales VAT in sellers account remember not all the value of the coin was VATable.

See HMRC Notice 143 above, clearly states £135 and below:-

Goods value Customs charges applicable
£0.01 to £135 No Customs Duty
No Import VAT
£135.01 and greater Customs Duty due,
Import VAT due

Excluding the following: alcohol, tobacco products, perfumes and toilet waters. These items do not benefit from the relief of Customs Duty or VAT at import, and alcohol and tobacco products will also be liable to Excise Duty.

You are confused as Sales VAT is NOT Import VAT a totally different thing.

Regards Mike Vosper, Numismatist

[papso22 · Accepted solution]

I am not confused , I know they are two different things, as i explained, but perhaps if you explain a bit more clearly what your issue is, I can try and explain it in a way you might understand. One thing you need to read is about ebays role as an OMP post 1st January. Also, Notice 143 is not the place for most of the information yoh need, that refers to import vat and I have explained that it is no longer import vat under £135, but there is still vat to pay.

[micvos_64 · Accepted solution]

Hi all

Have had a good look at OMP and can see what is happening and now understand the basics.

It looks like papso22 is correct as is eBay

I have an issue with VAT with items in Commodity code 9705000030 the code for Collections and collectors' (partly removed) numismatic interest because the Import VAT over £135 is 5%, not 20% as eBay are charging below £135.

If 20% then I am seriously concerned.

Regards Mike Vosper, Numismatist

[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.