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?

[*vyolla*]

Sounds like import VAT is being added, can you link me to one of the affected listings please?

[jonwillis81]

It's not due to go live until 7pm.

https://www.ebay.co.uk/itm/156634818833

[4_bathrooms]

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@jonwillis81 wrote:

It's not due to go live until 7pm.

https://www.ebay.co.uk/itm/156634818833

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Nobody can see it until it goes live. Is the item located within the United Kingdom?

Something else that might be affecting you is if you have changed your location when browsing or looking at the shipping options in a listing. If you have set your location to somewhere in the EU then looked at a listing that is located in the UK (such as your own) it will show VAT added. When you do that the change is "sticky" and can only be corrected by changing your location back to "United Kingdom". 

[jonwillis81]

I can't see how to unschedule it, it's grayed out. So I've set it to the closest time of 6pm.

I'll try to look at my location options to see if it thinks I'm outside the UK.  The delivery section of the item shows delivery to my postcode here in the UK

[jonwillis81]

It's now showing on site

- https://www.ebay.co.uk/itm/156634818833

I've tried using alternative browsers, incognito mode. Buy it now price still seems to include the VAT

[rumandraison]

I'm in the UK and when I look at your listing it's not showing me any VAT.

[jonwillis81]

Strange. So the buy it now is showing as £16?

For me it shows £19.20, and eBay told me the increase is due to VAT.

I've been digging a bit more into this. And it maybe caught by "VAT rules for supplies of digital services to consumers" where HMRC is treating eBay marketplace as the seller even for used goods.

[plpmr]

Can't see a reason for VAT.

However, you state in the listing "After discussing with ebay support. Please pick "other courier" (Free) if you want digital delivery to your ebay message."

Very bad advice because unless you post you stand the chance of losing everything because you cannot sell that listing for digital delivery.

[papso22]

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@jonwillis81 wrote:

Strange. So the buy it now is showing as £16?

For me it shows £19.20, and eBay told me the increase is due to VAT.

I've been digging a bit more into this. And it maybe caught by "VAT rules for supplies of digital services to consumers" where HMRC is treating eBay marketplace as the seller even for used goods.

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For me it also shows 20% VAT will apply.

You have to list digital items as classified ads by the way, but you have them in the correct category. 

[jonwillis81]

I've got a transcript telling me to do exactly that. As there is no option for digital delivery unless you are an authorised reseller.

They said to do this, instead of local collection.

What else is the alternative? 

[jonwillis81]

I've tried mobile app and web browser. It only gives me the option or auction or buy it now. Doesn't seem to allow classified as format.

[rumandraison]

Sorry I'm seeing £19.20 too but no mention of VAT, so I assumed that was the price without VAT  - my mistake.  I'm sure when I bought something from France before it mentioned under the bid price about VAT being added on top of the bid so that I was aware I would have to pay more, which is why I assumed it would show the same in this instance. 

[jonwillis81]

Some listing do, some don't. 

 

My listing does say +20% in search

 

[jonwillis81]

I tried moving it to Anti-Spyware category like other listings, but the 20% Vat is still applied to my listing, but not some other listings.

[4_bathrooms · Accepted solution]

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@jonwillis81 wrote:

I've been digging a bit more into this. And it maybe caught by "VAT rules for supplies of digital services to consumers" where HMRC is treating eBay marketplace as the seller even for used goods.

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I suspect you're right. It seems where digitally delivered services (which includes software) is concerned the online marketplace is the deemed supplier for VAT purposes if they "identified you as the seller but, sets the general terms and conditions, authorises payment or handles delivery or download of the digital service."

As I understand eBay's electronically delivered items policy you can't sell these software keys because you are not authorised by McAfee to sell them. There is a reason for this - in most cases when you purchase software you don't own the software just a license to use it. As per McAfee:

"What can I do with McAfee's software and services?

When you purchase our software and services, you're getting a limited license. This means we, our partners and suppliers still own all the rights to the software and services. We're allowing you to use them according to these terms.

If your license is for personal use:

You get a license for the software and services you've subscribed to, that belongs to you, and only you. You can't transfer that license to anyone else."

[2006jrgenpeter]

Abzocke des HMRC, das ist unglaublich.