VAT

hi respected seller,

i have a question regarding to VAT. i listed some products whose location in china. when a person buy ebay collect 20% VAt along with item price to customer. for example if item price is 10GBP then ebay collect 10+2gbp(VAT 20%)=12gbp. 

NOW MY QUESTION IS DID EBAY GIVE THESE COLLECTED 20% VAT TO SELLER? or NOT?

because as a seller we also pay 20% vat to chinese sellers when source any item to UK.

Accepted Solutions (1)

Accepted Solutions (1)

plpmr
Experienced Mentor

eBay collects thew VAT on behalf of the UK government and pass it on to them.

Answers (1)

Answers (1)

red_magpie
Experienced Mentor

Your items are listed as being located in China. As you're a UK seller, I take it you're using a wholesaler in China to drop-ship direct to your buyers in UK.

 

VAT is payable on entrance into the UK by the importer, which in this situation is you - or, if delivered direct to your buyers, your buyers. So surely the question isn't what eBay did with the 20% VAT collected on these sales. It's how you came to be paying "UK VAT" to a seller in China?

 

I imagine you've read eBay's announcement about collecting VAT. If not, see: https://www.ebay.co.uk/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&st=12&pos=3&query=...

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