Vat on 2nd hand goods from within the uk

[noranotyard]

This item 233863382919 is 2nd hand and located within the uk (Bedford) why am I going to be charged vat on it?
It doesn’t state this in the listing itself only on the price shown in the search list (I put in valve overdrive in a search , in the list of them it displays the +vat but not in the add itself, I’m not happy paying vat on 2nd hand goods, if the seller is a business then they pay vat on the profit they make selling 2nd hand goods , so why am I to be charged 20% on the full price ?
Not happy.

[plpmr]

looking at that item number -

 because the seller is in USA, even thought the item is claimed to be in UK.

clearly something is wrong, perhaps the item location or eBay is basing charges on where the seller is located?

[redwick1]

Yes I think you are right
Ebay says

Orders where the item is located in the UK, but the seller is not a UK seller

[noranotyard]

Thanks, he’s kindly cancelled it, he said he lives in the uk and the item is in the uk , so it must be that when he joined eBay he was in the USA and needs to update his profile as a logarithmic program probably automatically applies the vat message, I have looked at listings that are definitely seller and item in the USA and get no vat message, although do on an item from Italy. This is post Brexit aggro I suppose.
Thanks for the reply.

Sent from my iPhone

[redwick1]

I sell some second hand goods only in the UK and have not had this with customers but know others have

It is hard to say but does seem to be with the seller

This may not help as we are not sure yet why some have been charged and others not

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

You'll see the VAT included in your order total at checkout, and you can view and download a tax invoice from the Order details page in your purchase history

I feel HMR should be asked why

Ebay does not seem to have an answer

[arkwebus]

@noranotyard 

You are - of course - quite right that VAT is only chargeable by VAT registered traders.  They add 20% and - if sold on eBay in UK - the price should be inclusive.

There are simplified schemes which some traders choose to use [but do not have to] whereby they then pay over to Customs on a lower percentage.  This saves paperwork and they do not need to record VAT on purchases/expenses [Input Tax].  

The item number does not show up anything.  There are certainly problems with eBay adding VAT at present particularly when the item is in the EU.  There was a long article in the Sunday Times

[arkwebus]

The fact that an item is secondhand does not relieve it from VAT [if only!]. There is indeed a scheme for antiques based on the profit but not simply S/H

I suspect [and I cannot see the item so it may now have been taken down] that as said eBay "thinks" it is in USA.  Importing that would incur VAT even under the previous rules if over £15.

@noranotyard 

[noranotyard]

Vat should only be added to 2nd hand goods if sold by a business, and then the vat is only on the profit, and can be applied at 16.67% not 20, this is on the gov uk web site.

Sent from my iPhone

[papso22]

That's not right. The seller still charges 20% VAT but accounts to HMRC for VAT on their profit, which will be less.

[noranotyard]

Look it up on the gov website.

https://www.gov.uk/vat-margin-schemes


Sent from my iPhone

[papso22]

Did you read beyond the first lines? Margin schemes are an accounting easement, they allow someone who by law has to charge VAT at 20% to only account for VAT included in their profit margin, which is 1/6 of the margin. This is to allow for the fact that there will have been no VAT to reclaim on the purchase of the item. No one can charge VAT at 16.67%, that's simply how you work out the VAT included in an amount.

[red_magpie]

looking at that item number - because the seller is in USA, even thought the item is claimed to be in UK.

???? The seller of item no. 233863382919 is in the UK, and the item is sold as used.

I can't see how VAT could be payable on it.