First VAT return

[upclimb_ltd]

I'm doing my first VAT returns and would like some advice on here.

I'm registered as a business seller and charge VAT on my items which is collected by ebay.

My question is, how is that VAT reported to HMRC and how do I report that on my VAT return.

FYI, I didn't recieve that VAT collected by ebay.

[papso22]

You 'received' the VAT charged as part of what the buyer paid for you items and postage when they paid eBay.  What ebay passes to you will be less fees, so different.

Put very simply;

The VAT you put in box 1 of your VAT return is the equivalent of 1/6 of the selling price, including postage.

The VAT you put in box 4 is the VAT you have been charged on business purchases and expenses, including eBay's fees.  The difference between 1 and 4 goes in box 5 and is what you pay HMRC. 

You need to read VAT Notice 700, have a look at gov.uk and perhaps pay for 30 minutes of an accountants time.

[upclimb_ltd]

Hi, 

Thank you for your reply, I've got an account but they are not sure how VAT operate on ebay that's why I'm trying to find it out myself.

I've done what you said above and VAT paid on my Item subtotal(selling price) is £6707.47 and the ebay selling fees add up to £7058.04 (VAT on that is 1176.34). What do I do in this case as that VAT collected by ebay was not given to me.

Thanks 

[john1297576]

As you have a Limited Company and would have to have a proper Accountant, I suggest you show them the answer given by papso, after all you do pay Accountants so they should understand what he said.

[upclimb_ltd]

Hi, 

Thanks for your comment, yes I feel like they are not really useful.

1 more question if I may, as Ebay remit the VAT to HMRC I feel like I'm reporting 2 VATs (if I add it in box 1).

Is this the case, please your experience will be appreciated.

Thanks