Why has the item I've listed been listed for a much higher price? (It's not the buyer prot fee)

[vanchession]

I've just listed an item on Ebay (Game Pass Ultimate 1 month key). I listed it for £11.80, plus the buyer protection fee which is £1.19. This should be a total of £12.99, but when the item has been listed it's showing as £15.35 for some reason.

I've looked over and over the listing to see if there's anything I've missed, and there doesn't seem to be, I offered free postage, no promotions on the listing etc, but it's still showing as £15.35 even though it should only be a total of £12.99.

[moonlight-rhapsody]

They've added 20% VAT on to your £11.80.  This is what it says on your listing, under Postage:

"Price displayed includes VAT. The final charge may be different depending on the delivery address. Learn more"

[4_bathrooms]

Digital goods are subject to VAT which eBay is obliged to charge and remit when such items are purchased by non-VAT registered buyers:

"VAT on digital goods

From 28 April 2022, eBay will collect UK VAT from buyers of digital goods, and will remit that VAT directly to the UK tax authorities.

Digital goods (also known as eservices) are services which are provided electronically to buyers. Examples include the supply of software and the updating of software, the supply of images, text and information (such as ebooks), the supply of music, films and games online or by download.

A list of digital goods can be found at the HMRC site."

[vanchession]

Thanks for the quick replies.  So will I get the added VAT, or does it go direct to Ebay?  Basically, will I only receive the £11.80 I listed it for originally?

If not, then it seems a bit of a joke that not only is the buyer protection fee added, but a 20% VAT on top of that, which I receive none of.  Makes my listing seem artifically inflated in price, when I never even wanted that much for it in the first place.

[4_bathrooms]

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@vanchession wrote:

Thanks for the quick replies.  So will I get the added VAT, or does it go direct to Ebay?  Basically, will I only receive the £11.80 I listed it for originally?

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No, eBay charges the VAT to the buyer and remits it to HMRC. 

Just to explain eBay are obliged to charge and remit VAT in certain situations. One such situation is if an item up to £135.00 in value is located outside the UK - as the buyer is importing the item VAT is due and for items up to £135.00 eBay is responsible for charging and remitting that VAT.

Where digital goods are concerned HMRC treats online marketplaces (such as eBay) as the supplier unless the seller is a VAT-registered business seller. So eBay are responsible for charging and remitting VAT in your case.