SD gets better VAT charged

[suema_62]

Had my first 'Simple Delivery' sale and noticed item said  VAT rate: 20.00%. Im not VAT registered, do not charge it and the item for what little i could see with SD was going to UK (Northern Island)

So (I know) I contacted CS and the VAT is charged on the delivery service !!!!  so use SD and its another extra 20% on shipping for buyers. Whilst Royal Mail is VAT exempt and Evri would include VAT in their fees the fact ebay are an enabler on a delivery process and thus a service they have to charge VAT.   I'll just leave that here.....

[incredible_how]

It said it included VAT at 20%?

I wonder if it is because eBay pay vat and as you are buying from them rather than direct then they have to pay it?

[cbclassicbuyer]

There has always been VAT content on postage as far as I'm aware but only certain postal services, 24 /48 hour tracked certainly does. 

[suema_62]

Under item it just said VAT rate 20% no qualification as to what on but in the listing breakdown re what buyer paid the VAT was charged on the postage amount. Yes ebay provide the service hence charging VAT.  As no fees to list/sell guess thats why no VAT charged to sellers to use ebay lol.

Order total

£15.10

eBay collected from buyer

Buyer Protection fee

-£1.16

Postage

-£2.45

VAT

-£0.49

Selling costs

Transaction fees

£0.00

Order earnings

£11.00

[incredible_how]

yes clearly there is 20% vat in the postage. 

and yes the tracked RM do have VAT on them

[suema_62]

VAT is on the service not on Royal Mail postage which direct from a post office does not have VAT as exempt. If buying Evri label direct VAT is included. This extra 20% on shipping costs is because ebay are purchasing not us. So use SD and postage is 20% more not less.

[suema_62]

Ah I do see that Royal Mail with extra services have sneaked in VAT. Many ebayers would chose the standard second class parcel which doesnt have VAT but has a tracking number.  So if SD is imposing the trackable service that includes VAT and an Evri label that includes VAT are they adding VAT onto VAT? Doesnt help that 'postage' in my example doesnt indicate the type of postage.

[suema_62]

Ok falling on my sword with confusion.  The Royal Mail charge does not compute with 'Our Prices' from RM but seems ebay have done a deal and the VAT is actually taken out of the postage price charged and shown separately. Therefore as usual the CS info was false. Cheapest small parcel second class with tracking from your friendly Post Office is £3.90 no  VAT now yet Standard tracked RM via ebay is £2.94 including VAT. Proof in pudding re home collection, compensation, losses and damage.

[incredible_how]

Post Office counter prices are higher than online Royal Mail costs.
Simple delivery does not match with RM prices. If you have to exclude Evri (because drop off is too far away) it is more expensive. in that very common up to 2kg small parcel, which online from RM is £3.45. I suspect the £2.94 is sent Evri not RM.

[peverilbuyer]

So i can currently have collected from my door with label provided a 1.99kg small parcel (99% of what i sell) with cover upto £150 for £3.45. But from tomorrow i'll have to print a label, go to the Royal Mail website and arrange a collection and that will cost £1.02 more (£4.47). That really should illustrate to Ebay that they need to leave things alone, or make it optional or delay implementation until 'Small Parcel upto 2kg' is an option and costs no more than buying it direct. This change only assists one party at the moment and it's not the buyer or the seller. 

[edwardian-dreams]

Yes that table doesn’t say under “both carriers selected” what charge there is for each carrier 

seems to be a “from” thingy

so what is the charge for RM when you have both selected 

anywhere to find it?

[incredible_how]

certainly not the up to 20% off that was alluded to is it?

82p more for the average up to 2kg via Royal Mail (item worth less than £150)

I know we, the sellers, are not paying the Buyer Protection or the postage, but I suspect we are all jiggling our prices down a little.

I am only looking at the Royal Mail prices on the SD chart, because I am miles from an Evri Drop off - a round trip of 16 miles, and I don't drive. So I have deselected Evri. So buyers who buy from rural sellers have to pay more

[wintersdawn1]

Removed -  just saw the table was already posted above.

[incredible_how]

when you  don't exclude one carrier or the other, it'll be the price in the first column, and just go with the cheapest I suspect, it'll not be up to you the seller to choose. I'd have thought that the up to 1kg is Evri

[drag0n_fire]

Could  be construed as a form of mis-selling? Will be interesting to see what HMRC make of it because as it's reported on the invoice technically ebay will have to pay the 20% to the Inland Revenue when there is no VAT on postage as I understand it. I'm baffled and confused!!

[ruby*ryan]

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@drag0n_fire wrote:

Could  be construed as a form of mis-selling? Will be interesting to see what HMRC make of it because as it's reported on the invoice technically ebay will have to pay the 20% to the Inland Revenue when there is no VAT on postage as I understand it. I'm baffled and confused!!

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There is VAT on the services used for SD. 

https://www.royalmail.com/information-vat-and-postal-services

If ever you have used any of those services via RM, you would have been paying VAT. Likewise if you ever used any of the couriers.

[ett1954]

"Could  be construed as a form of mis-selling?" - The irony is obviously lost on you.

[lucy_farmer]

Hmmm .... yeah there's um... 'lashings' of stuff on there.      😎 

(and you certainly wouldn't want to buy somebody else's ; ' just flogging off a collection of their own stuff'!  😂)