Ebay business and VAT

[totaleclipseofthecart]

Hi I'm wondering if anyone can help me? I'm just about to change over to a eBay business seller account, I'm not VAT registered and don't need to be as my turnover will be know where near the £85,000. Will eBay still charge me 20% VAT on all my sales and will I need to take this in to account for all my listing prices? any help would be great thanks

[john1297576 · Accepted solution]

We all have to pay VAT, it is just that being Registered for VAT allows VAT PAID TO BE SET AGAINST VAT collected.

So answer is yes.

[totaleclipseofthecart]

Thanks for that I thought that would be the case I'm new to all this so just trying to make sure I have everything right before I proceed.

[papso22]

Ebay will charge you VAT on all the fees they charge you, which they also do to private sellers.  The difference is that they add it on to business sellers fees and include it in the fees charged to private sellers.

As you are not VAT registered you will not be able to claim any VAT you are charged, so you will need to treat it as an overhead for pricing purposes.

There will be no VAT charged on your sales to buyers because you are not VAT registered.