@pg_kicks wrote:
This isnt directly affecting me but it gets asked a lot on the boards.
With regards to needing a VAT number, do you need to make sales of £85000 or over before you need to change or do ebay take last 3 months and multiple it by 4 and if over you need to apply or another system. Nobody seems to know but sellers are being asked to provide a VAT number when yearly sales are under £85k.
Also as I asked in pm when having a conversation but was just ignored, which reporting option do you need to select for when reporting a private account who is clearly a business? I dont want to open the can of worms but I'd love to know the exact reason I need to select when I report. Not that much gets done but at least I know I'm trying. There isnt a clear option.
Hey @pg_kicks,
I know there can be some confusion with thresholds. I had a conversation with our teams about this recently and they gave me some great points that helped clarify this:
- VAT threshold in the UK is £85,000 in a rolling 12 months. The rolling 12 months is important to point out as it is not based off a tax year.
- We take into account turnover for this £85,000 threshold and we do not take listed stock on the site into our calculations.
- Postage costs are included in this calculation as it is based off complete turnover.
- In regard to the Global Shipping Programme we calculate the turnover received by the seller. Therefore, the international leg of the shipping costs is not included as turnover.
- For a cancellation, if a refund is issued to a buyer this amount is no longer considered as turnover and would not contribute to the £85,000 limit.
- International sellers who list items that are located within the UK, do not have to hit the £85,000 limit. They are required to be VAT registered as soon as they have at least 1 listing located in the UK, even if it doesn’t sell.
The HMRC may also request for eBay to take action. If you believe a member is trading incorrectly you can report via the listing page but for the most part this work is done internally and we do not rely on member reports.
Thanks,
Katie
