VAT charge for Role Playing Game Books from EU

[hungover24x7]

I have had an ongoing issue with Ebay adding VAT charges to role playing game books.

The category for RPGs is Toys and Games > Wargames & Role-Playing > Role-Playing and contains sub categories for genres like fantasy or science fiction or specfic games like Dungeons & Dragons.

Just look in the fantasy sub-category: https://www.ebay.co.uk/b/bn_16568331. Its full of books! However, if the seller of one of these is in the EU then Ebay adds a 20% VAT charge at the checkout because the root of that category is "Toys and Games".

If you reach out to support they ask you to get the seller to relist the item under the 'Books' category in order to avoid the VAT being added. This is not helpful. The seller has listed the item under the correct category and its unreasonable to ask them to do the work to circumvent Ebay's poor implementation when it comes to identifing the VAT category of items.

I am fed up with this issue and fed up with having to chase them for refunds on VAT that they should never have collected in the first place.

I would love to see an implementation that at least attempted idenfify books properly. At the very least they could look at the ISBN numbers on the listings that have them. AI would probably do a decent job looking at the images as well.

[plpmr]

No matter what its listed under eBay will charge VAT as it's coming from outside UK.

[ett1954]

Not so. Books are zero rated in the UK, and Ireland for that matter.  I drew eBay’s attention to this in July 2021 when the VAT rules changed regarding import and export within the EU.  I was advised that “ it would be rectified shortly”.   3+ years on we are in the same situation. 

I sell books and have customers charged increased VAT rates across Europe on military manuals. A WW2 collectible manual has a sub category of books which doesn’t incur additional VAT ( most EU countries have a reduced rate of VAT on books)  however, for example, a Vietnam war manual doesn’t have a books  sub category for a similar manual; as don’t most categories in military collectibles.

eBay collect fees on the value of taxes collected so work it out!

This  is an illegal imposition of VAT which has now been going on for years and of which eBay have been made aware. Until the authorities make them comply they will do nothing so we have to suck it up.  Basically more fees for eBay.

[hungover24x7]

The support personnel state that items listed under the "Books" category are exempt from VAT so its not a simple as that. There are many types of items that are 0 rated for VAT in the UK and they shouldn't be collecting VAT on any of them.

[hungover24x7]

I have had similar experiences going back a couple of years. They told me that they were going to fix it and yet here we are, same problem and same useless work around offered. Very frustrating.

[plpmr]

you say that what I say that eBay will charge VAT no matter what is "not so", but then agree that eBay do charge VAT.

[hungover24x7]

I'm not sure I follow what you are saying here.

Ebay decide WHEN to apply a VAT charge based on country of origin AND the item category. The problem is that the item category is not a useful way to determine whether a given item is eligable for a VAT charge.

Items listed with the Books category are not charged because it is assumed that all items within the Books category are actually books and books are 0 rated for VAT.

Other categories, such as Toys and Games have sub categories that contain listings for books which DO get charged VAT because they are considered to be games, not books by Ebay. These items are still books however and should not carry a VAT charge.

Its a dumb way of deciding whether to apply a VAT charge and Ebay doesn't seem to understand their own categorisation system with respect to UK VAT laws.

They have no intention of fixing the issue it seems and support's only advice is to get the seller to miscategorise items to avoid VAT charges. This is also a dumb thing to ask.

[myriad*seller]

eBay have no intention of fixing it

If you have been charged erroneous import VAT then you can claim it back from HMRC 

https://www.gov.uk/guidance/how-to-apply-for-a-repayment-of-import-duty-and-vat-if-youve-overpaid-c2... 

[ett1954]

You are correct but it doesn’t get you back the fees that eBay charged you on that incorrect VAT amount. Hence the reluctance for eBay to sort this. It is an income stream for them.

[rhymecity]

Ebay have not clue about 0 VAT rated items. You have to claim back by post with HMRC. But you won't be able to claim back the handling fees, postage to HMRC and your time 

[hungover24x7]

There is a tool that ebay provides to reclaim the VAT here: https://ocswf.ebay.co.uk/mudcwf?deptName=CollectRemitRefund

I don't know what the turn around time on this is: I have 2 in progress currently.

[ett1954]

@hungover24x7   Thanks for the link; now filed.

It would be useful if you could post back on this thread on the results of your claims and whether in fact eBay also refund your fees collected on the erroneous portion of the VAT collected.  If you are successful I will start submitting claims.

[hungover24x7]

I have had the VAT amount refunded on one of the items I purchased now. Total time was ~6 days to refund. Note that I got the VAT amount back only, though as a buyer no fees were involved. I don't know if the seller was impacted by this.

[papso22]

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@ett1954 wrote:

@hungover24x7   Thanks for the link; now filed.

It would be useful if you could post back on this thread on the results of your claims and whether in fact eBay also refund your fees collected on the erroneous portion of the VAT collected.  If you are successful I will start submitting claims.

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Surely it is the buyer that is making the claim for the VAT, but the seller who has been charged fees based on it? 

Ebay won't refund the fees to the seller based on a claim by the buyer.

[hungover24x7]

I think that this would be the case, yes.

[ett1954]

@hungover24x7   I have had to advise a couple of my international buyers to contact their own country's customs authorities to claim back excessive VAT charged, which in one case was a significant amount.  None have ever got back to me to confirm they were successful.

I can see no way to recover the fees I was charged on this amount as a seller.  Some of my regular EU buyers will now only purchase certain items through my other sales avenues; this therefore backfires on eBay as they receive no fees even though I would prefer these sales to go through eBay as the transaction process is simpler, smoother, and more time efficient.

[rhymecity]

I have just got about £110 import duties refunded as they agreed it was 0 VAT rated. Shame I cannot claim back the handling fees incurred by the postal company holding the item for the extra payment. This is a huge problem that eBay doesn't seem to care about.. it was an item sent through the eBay shipping program so I am suprised they are not set up to properly deal with this. I know many who refuse to purchase internationally because of this