In the UK HMRC webite says: Prices advertised to the public in ordinary retail shops include VAT.

[reilge4]

This is Law in the UK,  so does this not apply to eBay? I only noticed this as a couple of small items I bought recently were more than the advertised price. (+20%) 

Is eBay breaking UK law?

I've never had this before,  normally the price I paid was the price advertised.

[papso22]

Sellers who use eBay to sell are not 'ordinary retail shops'.  Buyers don't buy anything from eBay.

There will be legitimate reasons why you end up paying 20% more, probably due to the seller's location,  and no laws are being broken.  In fact it will be the law that makes VAT applicable.

[reilge4]

Beg to differ, many of the sellers using eBay are retailers. eBay are only acting as the middleman in the transaction. Regardless if you're working out of your house or garage if you sell to the public you are a retailer and therefore any prices should include vat. The only exception to this in my opinion is if you are trading as a wholesaler. They still charge vat but the buyer in this case (if they are a retailer) can claim the vat back from HMRC. If I am wrong, somebody please let me know so that in the future I will be asking every seller if their prices include vat!

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[plpmr]

"Is eBay breaking UK law?"

Best not to take or ask for legal advice on the boards.

However, eBay is not a shop, it's an advertising platform.

[reilge4]

Yes I understand that eBay is an advertising platform/middleman and that their revenue comes off the sellers end of the transaction, but if they are advertising prices to us the UK public then the advertised price should either include the vat or state that it's excluded. If the sale is just a one off say from me to you and neither of us is vat registered then the price advertised is the price paid by the buyer.
I should state that I'm only considering transactions within the UK.

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[sml192]

There are 2 types of Vat:

Sales Vat  which applies only to sales from a vat registered business seller;

and

Import Vat  which applies to all sales including those from non vat registered business sellers and private sellers. 

The advertised prices on eBay include Sales Vat  where applicable, as is the case in normal retail shops.  Sales Vat  cannot be added afterwards. 

Any Vat added at checkout will be Import Vat.   Import Vat  is triggered if the item or seller are located in another country, or the seller's registered address is in another country.  If the seller is vat registered then any Sales Vat  should be removed before Import Vat  is applied.