VAT on buyers fees?

[unclestein]

I bought a secondhand item from a UK private seller and I've just noticed that ebay have charged me VAT on the so-called 'buyer protection fee' (see screenshot).

I've looked through all the T&C's and as usual they are quite ambiguous such that it says 'ebay may charge VAT on the buyer protection fee in some territories', but this is a UK to UK sale!

I fully understand the legality of VAT being collected on behalf of HMRC by ebay and that VAT goes (or should go) to the HMRC, and I also fully understand that the total price WAS indicated at the point of sale, and it is included in the price breakdown AFTER the sale but I can't see why ebay are charging VAT on it in the first place?

Is this yet another glitch in the ebay accounting software that will never be resolved, or are they up to something? Some transparency wouldn't go amiss...

[papso22]

Buyer Protection is a taxable service supplied by ebay, it is subject to VAT like all their fees.

[jckl1957]

It is not a glitch - as advised, Ebay collect VAT on their fees and it is included in the 4% + 72p which is now added to all private sales.

[unclestein]

It clearly states in the T&C's that there's no VAT chargeable on the buyers fee if the buyer and seller are in the UK and the item for sale is not digital software, therefore it's either a glitch or the T&C's are wrong.

[tobiasd4]

This shows how ebay calculate buyer fee, it clearly shows VAT is charged,it is included in the 4%.

[unclestein]

That doesn't make any sense at all

[jckl1957]

Can you post a link and a quote for the Ts & Cs, please.

This is what I have found:

https://www.ebay.co.uk/help/buying/paying-items/buyer-protection-fee?id=5594

It clearly states that the BPF does include VAT.

Other terms and conditions

• The Buyer Protection fees displayed on this page are inclusive of UK VAT at 20%

[papso22]

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@unclestein wrote:

It clearly states in the T&C's that there's no VAT chargeable on the buyers fee if the buyer and seller are in the UK and the item for sale is not digital software, therefore it's either a glitch or the T&C's are wrong.

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I don't think it does. 

[john1297576]

Please show where you have read this? Are you sure you are  not reading NO VAT ON SALE PRICE?

VAT is charged on sale price if seller is outside the UK or registered outside the UK.