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...