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?

[bob_bello_art]

Hi

If you a private seller and you select buyer to pay the protection fee....buyer has to pay VAT on that fee and eBay collect that fee on your behalf and pass it to the goverment....

[jonny_leonard]

Nio that did not happen

[papso22]

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@bob_bello_art wrote:

Hi

If you a private seller and you select buyer to pay the protection fee....buyer has to pay VAT on that fee and eBay collect that fee on your behalf and pass it to the goverment....

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Private sellers cannot select whether or not the BPF is charged by ebay.  The VAT charged on that fee by ebay, is collected by ebay and passed to HMRC by ebay on their own behalf.

The BPF is nothing to do with the seller, and neither is the VAT on that fee.

[sandstormy]

VAT is for POSTAGE only,not for anything more.!

[bob_bello_art]

Yes you can

[bob_bello_art]

eBay do not apply VAT on postage...
If you buy from business seller and the seller is VAT registered the
seller is responsible for the VAT eBay just calculated it and you pay it to
the seller and the seller MUST report it to HMRC. If it is international
purchase you pay custom VAT
but eBay has to put VAT on all fees that are collected from the seller or
buyer...
so if the seller pay the buyer protection fee seller pay the VAT on the
BPF, if the seller transfer the BPF onto buyer, buyer pay that fee and VAT
on that fee...

[sml192]

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@bob_bello_art wrote:
eBay do not apply VAT on postage...

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The prices for Simple Delivery include VAT as it is a service provided by eBay.

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@bob_bello_art wrote:
If you buy from business seller and the seller is VAT registered the
seller is responsible for the VAT eBay just calculated it and you pay it to
the seller and the seller MUST report it to HMRC. 

---

Yes, if the seller is based in the UK.  If they are based overseas with stock in the UK then eBay is responsible for collecting VAT.

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@bob_bello_art wrote:
If it is international
purchase you pay custom VAT
but eBay has to put VAT on all fees that are collected from the seller or
buyer...

---

Where the item is located overseas EBay are responsible for collecting VAT on purchases up to £135.  For purchases over £135 the carrier is responsible for collecting both VAT and Import Duty, usually at the point of importation but can also be collected upfront by eBay on behalf of the carrier as in the case of items shipped via either the GSP or EIS.

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@bob_bello_art wrote
so if the seller pay the buyer protection fee seller pay the VAT on the
BPF, if the seller transfer the BPF onto buyer, buyer pay that fee and VAT
on that fee...

---

No idea what you are talking about here.  The Buyer Protection Fee, as the name suggests, is always paid by the buyer.  There is no option for the seller to pay it as it is nothing to do with the seller.

[crochetlady1358]

Hi I’ve just been charged VAT on an item for the first time and just like you I’ve had no sensible replies from the help centre.  I sold a child’s cardigan and as far as I know children’s clothing is VAT exempt and also my year’s takings are only £58 and VAT threshold is something like 90,000 annually.  So I’m very confused !

[papso22]

You sold an item so you could not have been charged VAT on it.

If you could you screenshot the page with VAT on, we can explain what happened.  If you paid for the postage it was probably VAT on that.

Or it might be the VAT the buyer was charged on the buyer protection fee and postage, shown to you as part of the breakdown.

[skswindon]

This happened to one of my listings. I am a UK business operating under the VAT threshold and all my items except one do not have VAT added. The exception was a listing for a "Hornby R0149 Virgin Night Mail Express Train Set" which, when I listed it, had VAT added to the buy-it-now price and a note that VAT would be liable on the winning bid. I didn't know this until a potential bidder queried why VAT was being added.

After a lot of faffing about I found that if I listed it as a "Hornby R0149 Virgin Night Mail Train Set", ie removed the word "Express", no VAT was added. No matter which order the words were in if the word Express was included in the title VAT was applied - remove Express and no VAT was applied. Everything else about the listing was unchanged.

I'm a (retired) programmer and this bizarre behaviour has me flummoxed. 

So, if this happens to you, try changing your listing title - remove words until it lists correctly. Note that you have to wait a few minutes before viewing the item using another ebay ID or while you are logged out. You can't see that VAT is being added when you look at your own item - again, bizarre.