Seller won't send a VAT receipt

[steve.b-w]

I am a VAT registered and have requested a VAT receipt but the seller business refuses to send one, even though the business has confirmed it is also VAT registered. It says that it is not obliged to because I purchased "as a private individual and not as a business entity".  But as a self-employed sole-trader my 'business entity' name is my name as listed with HMRC. I do not need to trade under any other 'business name' or need to have a separated/different accounts for private versus business purchases (in the same way I don't have to legally have a business bank account to process my business transactions). It is up to me what eBay purchases I register as 'private' versus 'business' expenditure. In addition, this seller is not displaying their VAT number on the listings page, which contravenes eBay's policy. How do I get eBay to take action against them.

[papso22]

Ebay says that business purchases require an ebay business account.  This not only prevents a business masquerading as a private individual (a criminal offence), but also makes it clear to a business seller that consumer law doesn't apply to the transaction. 

VAT registered sellers only have to provide VAT invoices to VAT registered customers.  If you are using a private account to buy, the seller has no easily available evidence that they are required to provide one.

If the seller is not displaying a VAT number but you know for a fact they are VAT registered, you can let ebay customer service know, but they won't be interested in the VAT invoice issue.

[steve.b-w]

Not sure what advantage there is in a VAT registered business 'masquerading' as a private individual - because couldn't then reclaim the 20% VAT element.

Regardless, all businesses have to first abide by HMRC legislation - whether selling from eBay listings or elsewhere. eBay policy doesn't trump UK law, as in:

“VATREC4010 -VATinvoices: requirements to provide invoices: The legal obligation to provide a VAT invoice

VAT Act 1994, schedule 11 paragraph 2A allows for the making of regulations which may require invoices (to be referred to as “VAT invoices”) containing specified particulars to be provided by taxable persons supplying goods or services to other taxable persons. Such regulations are in VAT Regulations 1995, Regulations 13-20."

I have provided my registered VAT number - that is all the seller requires (and can be checked with HMRC if concerned). In addition this company is breaking eBay policy by not displaying its VAT number on it's listings.

When I purchase goods for business use from sellers on Amazon (or anywhere else) I don't have to use a separate Amazon account. As said, as a self-employed sole-trader my name is my registered business entity with HMRC. I don't need a business name, a business bank account or to be incorporated, a partnership, LLP or anything else similarly structured.

When I reclaim VAT for a business purchase I have to store and be ready to present a VAT receipt if requested.  I can only do this if the seller sends me one - which they are obligated to do on request - as per the law above.

[john1297576]

Never having been involved in VAT I cannot comment on that, but “ I don't need a business name, a business bank account”, I suggest you ask your bank about that. I am way out of touch with Banking, having been retired for many years, but in my day a business account was charged differently to a private account, and if used for business purposes, account would have to be converted.

[steve.b-w]

I can categorically confirm that sole traders are not legally required to open a business bank account because they are not a separate legal entity from the business itself (as I'm sure others would/could verify here). Although some might advise not to use a bank account where private and business transactions are in the same place (to make it simpler when doing the accounts). But it's quite simple legitimate to use an 'ordinary/private' account for only business transactions and to keep this separate from any other account. This also saves a considerable amount on charges that banks gleefully apply for every business transactions (which incurs no more time/cost to them for processing a private/domestic transaction).  Banks see you coming when they know you're a small business!

[papso22]

I agree that ebay rules aside, if you have provided the seller with proof that you are actually a trader for the purposes of the VAT regs, they need to provide you with a VAT invoice.

It would have helped if you had provided that information in the first place!

[steve.b-w]

OK, I only sent my VAT number after getting the first negative response. But, obviously, the only and reasonable default assumption must be that anyone asking for a VAT receipt has has got a good and legitimate reason for doing so. As in, what possible benefit could I have derived from wasting my valuable time in going to the trouble of requesting this - and then looking out for the reply? Exactly what was I going to do with this receipt if I didn't actually need it?

Why be so difficult and waste more of their time in replying to be continued requests and annoyance? Why not just send the invoice on the basis that I wouldn't ask for one unless I didn't it. 

Once again, eBay and its sellers don't trump the obligations that HMRC lay down on business in respect to VAT law. If I go into a shop and ask for a VAT receipt, they don't ask me to prove that the purchase is for a legitimate business expense - or ask for my VAT number. eBay (and it's seller) are just a shop - but online. The same should apply to them. Amazon provide VAT receipts automatically (after the good are delivered). eBay needs to follow this example.

[tobiasd4]

You can't compare ebay and amazon. 

You buy from amazon, whereas on ebay, you buy from seller using eBay website. 

It is the seller who provides VAT invoice, not ebay.

[red_magpie]

Not sure what advantage there is in a VAT registered business 'masquerading' as a private individual

Probably none, because by the time sales reached the threshold for VAT registration the pretense of being a private seller would likely unravel anyway.

Engaging in a business activity e.g. buying or making items for resale reqires registration by law and by eBay, for very good reasons. Not doing so denies consumers their right to return items and other statutory consumer protection rights and evades eBay fees payable by business sellers.  VAT registration, where required, is a related but seperate issue (as is tax evasion, on which eBay is cooperating with HMRC to identify potential business activity).