Private sellers now being charged VAT

[mramos-uk]

How is it possible that being an UK based private seller since 2012 and only selling my second hand goods (one or two , once in a while, not every month for instance), not exceding £1000 ever , mostly not going over £150 even, I noticed for the first time that my Ebay invoice for May 2019 was showing a charge of 20% VAT over my £12 selling fees, making it final for £14? Vat on my piano keyboard was already paid when bought new, and once I was not informed I did not charge my buyer VAT, I’m not a business seller anyway, even if I was informed. Is this legal, or are private sellers now also Ebay’s share holders and responsible for what the company has to pay for income now under the recent EU regulations for companies established in tax-free Luxembourg? It was not enough having us supplying the goods and the work of packing and posting for a functioning company...without being part of it , can it like a nice try to have us to cover their income taxes too? 

[corred · Accepted solution]

@mramos-uk 

Private sellers have been charged VAT as part of our seller fees for some time........it is included in the 10% fees we pay.....eBy invoices now simply itemise it to show the VAT element....this is not payong eBays taxes.......you are bying a service from eBay (the advertising & selling your goods) and that service is vatable.....the VAT is not on the item you sold......eBay UK is a UK VAT registered company

You sold the keyboard for £119 + £9.99 postage.....on that basis your fees would be £13 inc VAT......if VAT were added at 20% then you would have been charged £15.60.......I can only suggest if charged £14 then you must have had outstanding fees of £1 from a previous sale as eBay do not collect fees inder £1 

[mramos-uk · Accepted solution]

That’s right , and fortunately there are also other platforms to choose for selling as well, thanks for the explanation indeed

[corred · Accepted solution]

@mramos-uk

Indeed there are......I sell vinyl on a different platform........they also charge VAT on their fees

Any platform you choose to sell on where you pay to advertise MUST by law also include VAT in those fees as you are still buying a service from you

The only platforms where VAT is not an issue are those where you do not pay to advertise but none have the same multi million user audience that eBay has

[arkwebus]

All registered traders who sell goods or services charge VAT. Many include it [as eBay does] so for example when you go to the pub and buy two glasses of wine costing £6 the pub includes £1 VAT which it - no doubt - passes on. 

Similarly with eBay. Their 10% at £14 includes £2.33 VAT which again they pass on to help fund all our services. 

If you go to - for example - a bricks and mortar auction house you will pay upwards of 20% plus VAT of 20% [in effect 24%]

@mramos-uk 

[redwick1]

Ebay fees for private sellers are 10% of the end price of the item plus the postage

You sold two items in April

The keyboard and some knobs 

Did you pay the fees for the knobs

The keyboard plus the knobs would be £141 so £14 fees

To check your fees go to the Account tab on your My ebay page then Summary then Fees

Does it actually mention Vat on your invoice?

[mramos-uk]

Yes it actually does, for the first time ever! I even thought that I registered as a Business Seller without knowing, but not, I only sell what I don’t need whenever it happens, so months go without selling

[mramos-uk]

They said it would be corrected in a first contact, on the second chat they could not know further as they don’t know much more about taxes 🙂

[ruby*tuesday]

We all pay VAT on pretty much everything we buy on a Daily Basis. I just paid VAT on a Plumber 's Invoice.