Tax on items shipped from the EU to UK

[grahamp223]

I recently bought an item for EUR 45 and was told in the "pay now" email

Yamaha CDX-393/ CDX-396/ CDX-493/ CDX-496/ CDX-593/ CDX-596…

Accepted offer: EUR 45.00

+ EUR 37.80 VAT will apply

•           You saved EUR 9.90 below the asking price

1. How can the VAT be 84% of the purchase price?
2. Why is there no mention of tax payable in the listing, contrary to what Ebay says on the page below?

https://www.ebay.co.uk/help/buying/paying-items/paying-tax-ebay-purchases.html?id=4771

The seller cancelled the order for me, but this can't be right, and I should be able to see these costs before committing

[john1297576]

Without all the facts it is difficult to understand the figures you give, but as I understand it prices on ebay have VAT included, but you as buyer are importing into the UK so 20% VAT is added by Ebay and collected on behalf of HMRC.

Your offer of 45 euros would include German  VAT T 19% , so you would be charged at 20% on the 45 Euros plus the postage. Mention of UK taxes would not be mentioned on the listing as for a start seller does not know where buyer will be.

Where the seller gets his 37.80 and saving of 9.90  from  I have no idea.

There is no mention on the listing of additional GERMAN Taxes, and if you received an Ebay invoice it should be purchase price plus postage, plus UK VAT at 20%. 

It sounds to me that any invoice you received was sent by the seller and not ebay.

[grahamp223]

Hello

The message I quoted from was not an invoice as such, but an email from Ebay telling me my offer had been accepted. I assume that "you saved 9.90" refers to the difference between my offer and the asking price. So it was definitely Ebay telling me "+ EUR 37.80 VAT will apply".

I called them and they explained that the tax amount was what they are required to collect by HMRC and that the calculated amount should be taken up with them!

I got my sale cancellation and it's been relisted as item 273831064872, if you want to look.

How do I avoid getting caught like this next time?

[tobiasd4]

If you buy from another country, you are the importer, so up to you know costs before buying.

You are lucky seller cancelled,

had you paid seller & then refused to pay any import fees, you would not be able to use ebay MBG & would have lost money & item.

[grahamp223]

But Ebay clearly labelled the 37.80EUR as VAT - and that's 84%!

Please tell me how I can determine the costs before buying. I am inclined to never buy from abroad again

[*vyolla*]

I don't know what's happening there. I just added that item to my basket and then went to checkout and I'm just seeing the item price plus £10.72 postage, it's not even adding import VAT at 20%. 

[grahamp223]

My fear is that you don't get told the tax until after checkout.

[tobiasd4]

Tax can only be calculated when final price  and postage is known.

[*vyolla*]

I was at final stages of checkout, the next process was to authorise payment.

You can't get charged more after you've paid. 

[grahamp223]

To clarify what happened to me:

I made an offer.

At that point I had commited to buy if it was accepted (without knowing the tax).

Ebaytold me the offer was accepted and I should pay the offer price + postage + 84% tax.

Doesn't seem right at all.

[papso22]

How much in total were you actually being asked to pay?

[grahamp223]

The actual email looked like this:

I can't remember if I clicked "Finish Your Purchase". I certainly didn't want to pay that amount

[tommystrezures]

The figure of +37 Euros isn't the postage charge by chance is it?

[red_magpie]

My fear is that you don't get told the tax until after checkout.

Importing items direct from a seller in another country isn't like buying from the shops. It isn't up to the seller or eBay to explain what import duty, VAT and handling charges will be payable when items are imported.

eBay explains in its guidance that when importing an item from abroad it's the buyer's responsibility to check what import charges may be applicable. There is plenty of guidance online from HMRC.

Where things become more complicated is when a buyer may not even realise that although their item is listed as UK stock, VAT may still be payable if the seller is abroad - usually in China. But this doesn't apply in this case.

[grahamp223]

No, the postage was 12.49 Euros. I can only think that Ebay is wrongly describing the 37.80 as VAT. It can't be VAT. Perhaps it is import duties - nearly doubling the price.

I've learnt my lesson and will never purchase Ebay items from abroad again.

[grahamp223]

It isn't up to the seller or eBay to explain what import duty, VAT and handling charges will be payable

But ebay is the party that collects these extras, so it obviously calculates them

[papso22]

They tell you what is payable once you enter into the agreement to buy, because that's when they have the information about your location and know what to charge you.

They don't have to warn you in advance, explain what they are, or give you a rough estimate, beforehand.  In fact they can't do most of those things until they know where you are because you bought it.

[grahamp223]

Wow. That's enough to put anyone off!