Why are we paying VAT on Antiques (anything that's over 100 years old)

[4minutemile]

Have you noticed that we're charged VAT on 100+  year old items?

The rules at HM Revenue & Customs are that if the item is over 100 years old and the postage & packing is only a minor part of the overall cost then VAT must not be charged.

Why are we paying VAT on items that are over a 100 years old? Why are our buyers paying VAT on items that are over a 100 years old?

When I buy in an auction abroad an import through Customs at an airport I have to declare what I bought. When I declare that the items are over 100 years old there is no VAT to pay.

This is ripe for a Class Action!

[roger_roger_over_and_nowt]

Ebay charge vat on their services,not on the item itself.

[*vyolla*]

What kind of VAT are you talking about, do you mean import VAT on international purchases?

[4minutemile]

Here is a UK example. Bought a collection which was entirely more than 120 years old.

2 items         £104.61

Postage          £3.40

VAT                   *£0.91

Order total £108.92

Obviously the VAT is not applied to the lot(s) concerned. In this case the VAT must  have been applied to service commissions which do not appear on this invoice because the seller has to pay for those.  But HMRC rules state that when the cost of providing a service and delivering the item is a small part of the overall cost (and they state a percentage) then no VAT is applied to the whole. Why is there any VAT on this invoice? I haven't read the rules for a few years now but there shouldn't be any VAT on this invoice.

[papso22]

There is no VAT charged on the items, the VAT will be on the postage and/or the buyer protection fee, both of which are vatable services supplied by ebay (postage if it was Simple Delivery)), and not part of the purchase of the items from the seller.

You are misunderstanding the HMRC rules.  

[4minutemile]

Here's a 160 year old collection from the United States. Now I know that some states in the United States charge their own state taxes and others do not. In this case the tax (the VAT) is charged for receipt in the UK. If I was bringing the collection in through an airport I wouldn't pay a penny in VAT on this.

2 Items        US$52.94

Postage        US$6.25

VAT                *US$2.96

Order total US$62.15

It's obvious that the VAT isn't being charged on the lot or the postage. It's being charged on something else. Possibly the commissions that the seller had to pay for. Why is there any VAT on this invoice?

[4minutemile]

The HMRC rules were pretty clear. I used to work for them.

If they've changed the rules they've changed. But there should be no VAT on my invoice for those items.

I'm supplying the stamps myself. I'm not using any derivative ebay postal service to print labels from. They are the real deal. Bought and paid for at a Post Office.

What am I paying VAT for?

[papso22]

Are you asking from the perspective of buyer or seller?  I thought you were the buyer but now you say you are supplying the stamps yourself  which makes you the seller.

Can you screenshot the actual invoices you are querying, and confirm which you are?

Did you work in VAT compliance with HMRC?  I am not saying there should be VAT on antiques by the way, but that is not the issue here  despite the thread title. 

[asleepingdragon]

I've got two ids and I stay logged in on the UK site with one and the US site with the other so I can just buy with either id, no need logging in and out.  I buy a lot (too many) dolls/teddies and clothes etc for them.  I've found often I buy on the US site and VAT is randomly added to one item and not to something which appears identical to me.  Never been able to understand it.  It never seems to have any rhyme or reason as to whether VAT is added or not.  Given up trying to understand why it happens.

[sml192]

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@4minutemile wrote:

Have you noticed that we're charged VAT on 100+  year old items?

The rules at HM Revenue & Customs are that if the item is over 100 years old and the postage & packing is only a minor part of the overall cost then VAT must not be charged.

Why are we paying VAT on items that are over a 100 years old? Why are our buyers paying VAT on items that are over a 100 years old?

When I buy in an auction abroad an import through Customs at an airport I have to declare what I bought. When I declare that the items are over 100 years old there is no VAT to pay.

This is ripe for a Class Action!

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Antiques are not necessarily zero rated for VAT.  It will depend on the type of seller, where the item is located or deemed to be located at the point of sale, and the structure of the sale. 

[4minutemile]

The United States has different rules in each self-governing state. You would end up paying taxes for California but you probably wouldn't end up paying taxes for Texas.