VAT on non business sellers fees ,

[algem1463]

So Ebay not happy with taking exccesive commission fees they now add 20% VAT to whatever they thieve from

you for selling an item ! .

The charges imposed are high enough to include the 20% ! .

This selling platform is no good to individuals who just want to make room & a few quid by getting rid of surplus items , by the time their charges plus VAT are deducted form the selling price 20% + is gone .

The company is just a rip off , to say I hate them is an understatement , when my current items are sold I will be

using alternative selling platforms

[arkwebus]

Unless there has been a change of which I am unaware the fee of 12.8% + 30p includes VAT for private sellers.

@algem1463 

[four_mid_able]

Have you ticked the "promote" box without realising it.

[algem1463]

No I hadn't , the Ebay charges according someone else who replied are nearly 13% with a 30p listing fee all including VAT , I received a sales invoice with nett charges then VAT added which highlighted the fact that approaching 20% of my sale income is diverted elsewhere .

[papso22]

The fees ebay charge private sellers are VAT inclusive but they separate out the VAT when they invoice you. 

So if your fees are say, £10 VAT inclusive for the percentage element ebay will show that as £8.33 plus £1.67 VAT.

The 30p fixed element will show on the invoice as £0.25 plus £0.05 VAT. 

Ebay pays the VAT to HMRC, it's not part of their 'income'.

[algem1463]

I'm fully aware how VAT works from running businesses for 40 years , what I'm saying is that Ebay are making too much out of their users , surely the VAT element can be inclusive in the 10% & 25p charge , especially as it the seller who is generating thier income .

[txt.ltd]

Look, it's quite simple: buyers pay fees, not sellers.

If you are having trouble covering fees in your sales prices, use this formula:
(sum of fixed costs) / (1 - (sum of variable costs as decimal))

e.g.:

Fixed costs: 1.20 postage; 0.20 packaging; 0.30 per-order eBay fee; 2.50 goods
Variable costs: 12.9% eBay final-value fee; 16.67% VAT (use 0.2/(1+0.2)); 0.4% loss rate

If VAT-registered, use all NET (VAT-exclusive) values in the formula.
If not VAT-registered, remove the VAT variable cost.

What about your profit? It can be included as either a fixed 'cost' or a variable 'cost' (as a % of the sale price.)

Let's run the formula to get a sale price that covers all our costs and guarantees us our desired profit.

If desired profit is a fixed value of 1.50:

(1.2 + 0.2 + 0.3 + 2.5 + 1.5) / (1 - (0.129 + (0.2 / (1 + 0.2)) + 0.004) = sell at 8.14

If desired profit is a fixed 10% of the sale price:

(1.2 + 0.2 + 0.3 + 2.5) / (1 - (0.129 + (0.2 / (1 + 0.2)) + 0.004 + 0.1) = sell at 7.00

Break the figures down to see that everything is covered and you get your desired profit.

[algem1463]

Text book ! , whilst you are correct it doesn't work , big difference between desired profit & actual .

The buyer only pays the fees if you get this magical desired profit .

[thesmi42]

Looks like you have been an established seller for quite a few years.  I'm just curious to know what made you suddenly realise that the fees include VAT?  But to be clear, it's not 20% of the selling price unless import/export tax is involved.

[*help_no_brakes*]

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@algem1463 wrote:

Text book ! , whilst you are correct it doesn't work , big difference between desired profit & actual .

The buyer only pays the fees if you get this magical desired profit .

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Profit?

On selling your personal items as a private (non business) seller?

[txt.ltd]

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@algem1463 wrote:

Text book ! , whilst you are correct it doesn't work , big difference between desired profit & actual .

The buyer only pays the fees if you get this magical desired profit .

---

Wrong. The desired profit and the actual profit is the same. The formula works to cover all fees. But feel free not to use it and keep complaining instead. 😊

[tmc2302]

I have just sold an item for £1100 & paid just under £200 in fees, this is the last time I ever use eBay it is abosulutely robbing sellers. Nothing is explained prior to selling & I still don't quite get the initial £47 I was charged & still awaitan explanation. They have the audasity to ask if you wish to give some of your sale to charity. It makes the fee charges worse because we in the UK are being robbed for everything we pay for & getting little in return. People should boycott eBay