VAT added to private seller

[jonwillis81]

Hi. 

I've had VAT added to my item. I am a private seller, not selling for profit, I'm not vat registered. I'm selling from the UK to the UK. Why is eBay adding 20% vat to my listing. 

I spoke to that support and they are absolutely sure this is correct behaviour. But to me it's wrong as I'm not vat registered so it's illegal for me to charge VAT. Unless eBay is buying it from me then reselling it, then surely they can't charge VAT as I've already paid VAT on it as the end user when I brought it originally. 

Can anyone shed light on this issue?

[benidicta]

Thanks for getting back to me well it’s getting very complicated,the address is a uk address in Devon where the buyer lives.I have tried to sort it out arranged a call back yesterday very bazar When I connected to the call it was an automated message but in German.Gobsmacked to say the least ,I don’t speak a word of German I am trying to work out what to do next I have checked all my a/c details they are in order nothing to say what is happening is due to thatI need to sort this out as I don’t know what repercussions this could have on me re tax man I don’t have a vat no I’m not a business I’m not very tech savvy and very frustrated at the moment as I think A1 is great but my second hand wig is turning into an international problem LOL😁I am trying to laugh about it but it’s getting on my nerves I’ve nothing to hide I pay my taxes Any advice would be appreciated,Very kind regards Veronica 
P S hope I’m making sense 


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[4_bathrooms]

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@benidicta wrote:
Thanks for getting back to me well it’s getting very complicated,the address is a uk address in Devon where the buyer lives.I have tried to sort it out arranged a call back yesterday very bazar When I connected to the call it was an automated message but in German.

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Who did you arrange a call back from; eBay or the buyer?

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@benidicta wrote:
I need to sort this out as I don’t know what repercussions this could have on me re tax man I don’t have a vat no I’m not a business I’m not very tech savvy and very frustrated at the moment as I think A1 is great but my second hand wig is turning into an international problem LOL😁

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There will be absolutely no repercussions for you. In certain circumstances eBay are obliged to charge and remit VAT on a sale; for example if you sold an item worth €150 (£127.50 approx.) or less to a buyer in Germany eBay would be obliged to charge and remit German VAT on that sale. Similarly, if a UK buyer purchased an item that is located outside the UK worth £135 or less eBay would be obliged to charge and remit UK VAT on that sale.

If you go into the sales record how much does eBay show the buyer paid? If it doesn't show any VAT being charged by eBay then no VAT has been applied. Can you explain what is making you believe that VAT was added to the sale price?

[benidicta]

Thank you you’re so kind to take the trouble to get back to me It is showing the below information 
£4  price of wigEBay protection 88penceVat 49pSo it’s showing vat 
Yes I did ask for a call back that’s why I am so puzzled.to get a German answer machine Kind regards Veronica 


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[lucy_farmer]

   Did you send under the Simple Delivery System?  did the buyer pay postage or did you?

(VAT on the postage cost, not the item has been popping up on the simple del system....?.)

[papso22]

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@benidicta wrote:
Thank you you’re so kind to take the trouble to get back to me It is showing the below information 
£4  price of wigEBay protection 88penceVat 49pSo it’s showing vat 
Yes I did ask for a call back that’s why I am so puzzled.to get a German answer machine Kind regards Veronica 


Sent from the all-new AOL app for iOS

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That's the VAT correctly included in the Simple Delivery postage charged to the buyer.   It is not VAT on the wig.

[benidicta]

Thank you for getting backPostage was Royal Mail just simple large letter paid for by buyer That’s why I’m so puzzled Kind regards Veronica 

Sent from the all-new AOL app for iOS

[4_bathrooms]

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@benidicta wrote:
Thank you you’re so kind to take the trouble to get back to me It is showing the below information 
£4  price of wigEBay protection 88penceVat 49pSo it’s showing vat 
Yes I did ask for a call back that’s why I am so puzzled.to get a German answer machine Kind regards Veronica 

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That is the VAT element of the buyer protection fee and the postage label. eBay are a VAT registered company so the BPF and any "Simple Delivery" shipping charge will have a VAT element - eBay are simply showing the amount of VAT they have charged and remitted.

[jonwillis81]

That makes sense.  I've had the same on a used keyboard insold.

 

[4_bathrooms]

Thanks for posting that - it looks like the VAT is only shown on the postage element and not the BPF.

[jonny_leonard]

I recently purchased as used golf driver head and the eBay system has charged me VAT and I am convinced that in 'the country of manufacture box' He has put Japan so eBay's automatic BOT has picked this up as an item from another country 

So a warning; to anyone on eBay selling and adding in a reference to another country, needs to be leave that slot empty, as eBay's stupid auto system will confuse itself and add VAT where it doesn't apply

[jonny_leonard]

If this is just an item bought from UK eBay  from a seller in the UK there is no VAT applicable Please seea following note I have already sent to another person

I recently purchased as used golf driver head and the eBay system has charged me VAT and I am convinced that in 'the country of manufacture box' He has put Japan so eBay's automatic BOT has picked this up as an item from another country 

So a warning; to anyone on eBay selling and adding in a reference to another country, needs to be leave that slot empty, as eBay's stupid auto system will confuse itself and add VAT where it doesn't apply.

If anywhere in the description box is mentioned another country well do not do it as the more tech orientated eBay becomes the more problems will occur as there is no common sense used when your a piece of code agggh

[jonny_leonard]

I understand exactly what you are saying in relation to the 'Digital info' but I got charged VAT on a second hand 4 year old item purely because the buyer added in the box country of manufacture JAPAN, eBay's BOT picks this up and says VAT applies due to one word, all sellers must be careful to leave this box blank on second hand items or lie.

My original

I recently purchased as used golf driver head and the eBay system has charged me VAT and I am convinced that in 'the country of manufacture box' The seller has put 'Japan' so eBay's automatic BOT has picked this up as an item from another country 

So a warning; to anyone on eBay selling and adding in a reference to another country, needs to be leave that slot empty, as eBay's stupid auto system will confuse itself and add VAT where it doesn't apply. and having spoke to eBay who (for the first time in twenty years of dealing with them) was unhelpful and suggested I talk to the seller to get my VAT back as he kept telling me that the seller made a mistake and I kept telling him no he did not it was eBay's system that is screwing things up AGGGGH

[papso22]

You are putting 2 and 2 together and getting 5.

[4_bathrooms]

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@jonny_leonard wrote:

I recently purchased as used golf driver head and the eBay system has charged me VAT and I am convinced that in 'the country of manufacture box' He has put Japan so eBay's automatic BOT has picked this up as an item from another country 

lot empty, as eBay's stupid auto system will confuse itself and add VAT where it doesn't apply

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That is not what happened.

If your sales record looks like the one posted by @jonwillis81 the VAT shown is the VAT charged on the postage. If you look carefully there is a small asterisk next to the postage charge and an identical one next to the VAT charged in the first section indicating the VAT was that charged on the postage:

£2.87 + 20% VAT = £3.44 (£3.44 - £2.87 = 57p).

The only odd thing is eBay shows the Buyer Protection Fee including VAT. eBay are a VAT registered business; the BPF and the postage label eBay charges the buyer are therefore VATable. No VAT has been levied against the item price.

[benidicta]

Thank you for all your information i do feel ebay is getting more and more complicated due to the A1 and maybe other issues i haven't worked out yet  .I am finding it more than frustrating in a lot of ways. 

I am promoting all of my items as due to my change in circumstances I have decided to sell some of my costume Jewellery items , stamps etc and some of my coins,I give the proceeds to my local charitys,but i am finding very little traffic  on some items or no traffic at all. I'm leaving them on Ebay while I'm deciding what to do,I have never experienced such slow selling ,

I do appreciate your input on the vat though  ,every thing is so disappointing I'm just glad I'm not a business. 

[jonny_leonard]

Thank you for a positive response. I did have some people tell me I
don't know what Im talking about, but in over 20 years of using eBay I have
NEVER been charged VAT on any 2nd hand item bought within the UK, I even
couldn't get through to the agent I spoke with about the issue. this guy
had put country of manufacture as Japan and eBay's BOT picked up on this
and decided it was an item out of the country and addedVAT to my invoice,
usually if you explain o ebay they help you but the guy I talked to was
quite intractable, and even suggested I get in touch with the seller to ask
for a refund, as if that would happen.
Regards John

[4_bathrooms]

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@jonny_leonard wrote:
this guy
had put country of manufacture as Japan and eBay's BOT picked up on this
and decided it was an item out of the country and addedVAT to my invoice,

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Again, that is not what happened. If the item is located in the UK and the seller is registered in the UK eBay does not charge VAT on the item's selling price regardless of the stated country of manufacture. If the item is being sold by a UK-established VAT registered business seller the seller (not eBay) will have a VAT element included in the price.

Anything you pay eBay for - such as a "Simple" Delivery label and the Buyer Protection fee when purchasing from a private seller - includes a VAT element. This is because eBay are a VAT registered company so anything you purchase from eBay will have a VAT element included. In certain circumstances eBay are the deemed supplier of an item for VAT purposes so the item price will include a VAT element. This includes any item that is located in the UK that is being sold by a seller who is registered overseas. Note that eBay does not have a search filter for seller location; the "UK only" filter applies only to the item location.

Can you please take a screenshot of the sales record showing the price you paid including the VAT that was charged? If not, can you please state the breakdown that is shown in the sales record including the item price, postage/shipping, Buyer Protection fee and VAT charged?

[jonny_leonard]

The guy is private seller not anything to do with proper business selling
Like most answers I've had of people who don't believe me try putting
country of manufacture outside of the UK on anything you sell and see what
happens to buyers costs
Regards John

[4_bathrooms]

I'm a VAT registered business so all my prices will include a VAT element regardless of the country of manufacture. 

Can you please post the item number or the information I asked for in my earlier post? The item number would probably be the most helpful piece of information.

[4_bathrooms]

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@jonny_leonard wrote:
Ive had of people who don't believe me try putting
country of manufacture outside of the UK on anything you sell and see what
happens to buyers costs

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I've just performed a search for "manufactured in Japan" (there isn't a search filter for "Country of Manufacture) and selected the private sellers only option. I checked the first 5 results to see if they had specified the "Country of Manufacture" item specific as "Japan"; three of them had. Here are the 3 results where the country of manufacture item specific was specified as Japan:

1. A music CD listed at £14.24. This is £13.00 plus the Buyer Protection fee (£1.24) - no VAT has been added to the selling price, only the BPF.
2. A vintage pinwheel calculator listed at £26.72. This is £25.00 plus the BPF - again, no VAT is being charged just the BPF.
3. A vintage fishing reel listed at £26.72. Again, this is £25.00 plus the BPF with no VAT being charged.

So, there clearly isn't an issue with the Country of Manufacture item specific. Can you please post the information I previously requested so we can determine exactly what eBay charged you?