VAT added

[bluebellfressia]

Well I sold a Cassette Tape for £1.99  The buyer ended up paying £5.49 for it, inclusive of postage of course.

But why the VAT too?  I thought the buyers protection was bad enough.

It's no wonder sales are low or non existent!

[papso22]

Was the VAT on the postage (which would be correct by the way)?

[bluebellfressia]

@papso22 

I have no idea, I've not seen it before.  I have attached a photo.

Oh I assume it was as postage would have been about £2.70 

Thank you for pointing that out to me.

[unclestein]

Today I was charged VAT on the buyer protection fee (aka buyers fee).

Although it was included in the total cost indicated at the point of sale it was only when I looked at the invoice I saw they had added 55p to the £2.77 buyers fee (see attachment).

I see no reason for them to charge VAT on the buyers fee, although the T&C's state in the usual vagueness that 'VAT may be charged in some territories', but this was a UK to UK sale.

[the_book_seekers]

Private sellers have always paid an element of VAT, but it has always been inclusive . I'm not sure why ebay has now chosen to show it as separate. It has caused confusion.

[sml192]

---

@unclestein wrote:

Today I was charged VAT on the buyer protection fee (aka buyers fee).

Although it was included in the total cost indicated at the point of sale it was only when I looked at the invoice I saw they had added 55p to the £2.77 buyers fee (see attachment).

I see no reason for them to charge VAT on the buyers fee, although the T&C's state in the usual vagueness that 'VAT may be charged in some territories', but this was a UK to UK sale.

---

As a UK VAT registered company eBay is legally required to collect VAT on any fees that it charges.   Fees charged to private sellers and buyers are generally shown inclusive of VAT as private individuals cannot reclaim the VAT.  However, the VAT has to be shown separately on any invoice. 

[unclestein]

But there is no reason to charge VAT on the buyers fee as the item from the UK and the item is a secondhand microphone and not digital software.

[sml192]

---

@unclestein wrote:

But there is no reason to charge VAT on the buyers fee as the item from the UK and the item is a secondhand microphone and not digital software.

---

VAT applies to all service fees.  The VAT doesn't relate to the item itself so the type of item and where it is coming from is irrelevant.