eBay Adding £0.75 + 4% To Sale Price AND An Aditional £0.75 + 4% To Postage????

[selling-uk]

Right, we are all aware that eBay have started adding a BPF of (IIRC) £0.75 + 4% of the total sale price (inc P&P) , yeah?

BUT, today I noticed when editing an item, when I hit "Save", I got a red error message satating that I needed to add a postage option.

This was weird as it had had one previously (RM Tracked 24 @ £4.25).

So I selected Custom Postage, and entered the same and after saving the postage was showing as £5.10, so an extra £0.85 on top of what I entered.

This is addition to eBay already adding the £0.75 + 4% to the actual item price, making that a total of £1.50 + 4% of the total price.

Surely that cannot be right?

[the-nutwood-collection]

I think eBay is adding 20% VAT to the shipping (£4.24 + VAT is £5.10) because T24 is a vattable service.  However, the price of £4.25 includes VAT (£3.54 + 71p).  Ebay is vatting the VAT.

If I'm right, you can't reduce the shipping to £3.54 to make it right for the buyer, because eBay will remit the 71p to HMRC so you'll be out of pocket.

Also, if I'm right, this is yet another eBay bug that needs to be fixed - and fast.  HMRC doesn't appreciate people making up their own VAT rules.

Maybe the coding was done in the US.  I dealt with US developers, and they just couldn't understand VAT.  It doesn't work like US sales tax, and they couldn't get their heads around it.

[unclestein]

Apparently ebay don't have glitches, it's always the customers fault!