Paying VAT as a seller in the UK?

[sussex-coast]

I'm in the UK (always have been). I'm not a business, just selling personal items. A few weeks ago I looked into why my totals were so low after fees and saw that I'm being hit with VAT on every sale. Very few of my items are going abroad so I don't understand? Am I meant to have ticked a box somewhere to say I'm VAT exempt or does every seller pay 20% VAT on items sent within the UK?

[four_mid_able]

Ebay have always charged VAT on sales etc but some time back they just changed the way it's shown on your bill.

Paypal do same.

[sussex-coast]

Guess that's why I never noticed it before. The FVF is bad enough (mostly 10.67% in the categories I'm selling right now) but with an extra 20% it's crazy. 

[arkwebus]

You need only [and can only] pay VAT if you are registered with HMRC.  EBay's fees do [of course] have VAT  but for non-registered sellers this is included in the 12.8% [etc]

@sussex-coast 

[purveyor_of_tat]

You're not being charged VAT in the way you think. 

eBay do charge private sellers VAT on the fees but, it is included in the 12.8%, not added on afterward. 

Can you provide an example screenshot of why you think you're paying VAT on top?

[sussex-coast]

Here you go, see the separate VAT charge? It's been on everything, I've checked for a few weeks now.

[**grandpa**]

That is correct. Private seller fees are 12.8% + 30p.

eBay provide a service (allegedly) and, therefore, that attracts VAT.

It is made up as 10.67% + 20% VAT = 12.8%.

[purveyor_of_tat]

As I say, it is included - it's just that eBay unhelpfully display how it breaks down. 

The 30p fixed order fee in your screenshot is shown as £0.25 which if you add VAT on to, becomes the 30p they advertise. 

12.8% of £69.00 = £8.83. Add on the fixed order fee of £0.30 and that equals £9.13 which is what you were charged and is inclusive of VAT. 

[thesmi42]

Your example is correct, VAT has been included in the final value fees which gives a total of £9.13 based on 12.8% +30p.

[crg_collectables]

You pay vat on the service ie the fee. Similar to if you paid a plumber you might get a bill for £200 with £40 vat added. You dont pay vat on the item value.

Vat registered businesses can claim this back but non vat registered businesses can still consider it as an expense.

[second-hand-rosie]

Yes I've just noticed it on mine today so you pay vat on buying your items originally then pay vat again when you sell them its a disgrace this country 

fleeces you ever corner you take it makes you sick!!!!

[*vyolla*]

You're paying VAT for using eBay's service. 

It's included in private seller fees, nothing has changed.

Private sellers are just seeing it now because eBay have changed the way they set out your invoice breakdown.

[second-hand-rosie]

Its on the sale not for ebay, I was watching a thing on TV the other dsy about they said we shouldn't be paying vat only business sellers should not private sellers we have already paid vat on our items and seller them on for less than we originally paid. We already pay ebay for using it that's reflected in ebay fees.

[papso22]

Sorry but you are not making any sense.  Where are you seeing this VAT you are being charged?  Can you provide a screenshot?

[crg_collectables]

This is what I see, note the vat is only on the fee, if it was on the total it would have been more like £1 vat:

Total fees-£0.78

VAT(20%)-£0.15

Total fees (includes VAT)-£0.93

[tommystrezures]

And that is correct.

Its the same at any bricks and mortar auction house etc. You have to pay VAT on the fees they charge. Ebay  in its role as the "vendor" will be VAT registered and thus have to charge vat on their fees.

[fotherbale]

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@sussex-coast  - The VAT you are seeing there is the VAT which is levied on the ebay fees only.  It is not VAT on the item final value. 

You are not being charged VAT for a second time on the item itself.

As has been explained to you by several people already, but you seem determined to fail to understand!

[123cherryj]

I don't understand why I am paying over 13% in fees? 
example I sell at total of £36.99 Total deductiblefees and VAT are £5.03. 

[myriad*seller]

You pay 12.9% + 30p for each item sold. 

For low value items, the 30p fee makes it appear that you pay more than 12.9%, but if you check your fees and remove all the 30p set fees you will see the fees you pay are 12.9% as they should be. 

[arkwebus]

Because eBay likes to make money [they are a business after all].  If you - as a private seller - sell most items [not including motors] eBay charges 12.8% + 30p on the total including postage/delivery.

That is where the £5.03 comes from. 

EBay does say "list for free" but that just means you to not pay 35p [ as business sellers do] to list. Final fees are always payable!

EBay does - from time to time - offer 70% off its fees but this is with so many conditions that I have never been able to accept the offer,     @123cherryj