VAT added to postage, not advised in listing.

[sweetcharity.2013]

I'm wondering if I missed some announcement re VAT added to postage?

I purchased an item today, postage listed as £2.91. It was a Best Offer (Auto Pay) & when the charge was made it stated as below in the details. 58p being 20% VAT on £2.91. Only a small amount but not as advertised. Seller is UK registered since the early 2010's & obviously it's not them that's added it.

29 Jan at 1:10 PM

1 item

£10.00

Standard tracked delivery

£2.91

VAT *

£0.58

Order total

£13.49

*VAT collected on this transaction based on applicable laws.

From original listing:- 

Postage:

£2.91 Standard Tracked Delivery. See details for postage

Located in: ***, United Kingdom

[papso22]

I think you need to ask ebay that question. 

[sweetcharity.2013]

Thanks papso22 , I've asked in the Weekly Chat 29.1.25. Just wondered if I'd missed something really. 

[papso22]

I have seen nothing announced.  I did wonder if it was a glitch to do with simple delivery but the price shown should include VAT, nit have it added on.

[sweetcharity.2013]

I was guided to this by Marco:-

eBay delivery fee

eBay has introduced a delivery fee for certain items purchased on eBay.co.uk, and charges VAT on the eBay delivery fee where the fee applies.

If eBay is obliged to collect VAT under the deemed reseller rules, VAT will be collected on the full value of the item plus the eBay delivery fee in accordance with applicable laws.

HOWEVER, buyer beware there is no mention of VAT being added on the actual listing that I can see. 

Another charge for buying from Private Sellers? I am beyond caring, roll on the 4th...

[papso22]

I can't find anything about this fee in the help section, so I have asked for clarification from Marco direct.

[sweetcharity.2013]

Did you get any update @papso22 from @marco ? 

I see another buyer has been charged & is querying this VAT charge.

It does seem to be another hidden charge - could it possibly relate to reselling eg 2nd hand goods? I wonder why ebay can identify that VAT is applicable at the point of payment but unfortunately not at the point of listing. I wonder if it's a legal requirement to advise prior to purchase if VAT is applicable?

[john1297576]

Could this be the explanation ?

Charges made by the Royal Mail Group Limited for postage are exempt from VAT under its remit as the universal postal service and subject to price and regulatory control. Postal services provided by the Royal Mail are not exempt when the same or similar services are provided by both the Royal Mail and other suppliers.

If I understand that correctly if service supplied by ebay then VAT is added.

What ever it means surely ebay  should advise members and not just add it on unannounced.

[sweetcharity.2013]

'What ever it means surely ebay  should advise members and not just add it on unannounced.'

My thoughts exactly! Although in the Community Chat 29.1.25 Marco directed me to a ebay help page re VAT, so they could say it's there if you want to look for it. Unfortunately it's not actually on the listing that VAT is applicable, so another surprise charge for your common-or-garden buyer along with those other ones coming into force. I still haven't a clue if my charge was on postage @20% or as Marco stated the whole transaction at some other %, which would be even more concerning... if I was staying to buy that is!

[papso22]

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@sweetcharity.2013 wrote:

Did you get any update @papso22 from @marco ? 

I see another buyer has been charged & is querying this VAT charge.

It does seem to be another hidden charge - could it possibly relate to reselling eg 2nd hand goods? I wonder why ebay can identify that VAT is applicable at the point of payment but unfortunately not at the point of listing. I wonder if it's a legal requirement to advise prior to purchase if VAT is applicable?

---

I was told that Marco had a look and decided that it wasn't added VAT it was just the breakdown of the total transaction.

But that doesn't seem to that work for what happened in your case where the item was 10 and the postage was 2.91, so even if the postage included VAT you should only have been charged 12.91.

[sweetcharity.2013]

Thanks @papso22 

I am totally befuddled by the transaction & a further one with the same seller where I was charged VAT (suspiciously working out at 20% of the P+P). Just bought some 2nd hand stuff from another Private Seller & no VAT charged, but maybe they're not using ebay Simple Delivery as john1297576 pointed out, so VAT is included in the list price. 

I think this might be a query being raised again in the near future by savvy buyers, if there's any left next week...