VAT on Ebay

[Drains]

Anyone know what the score is with sellers charging VAT on Ebay auctions?

I was under the impression it was against the rules, and vat registered sellers had to pay vat out of the final price, not added on. Also, shouldn't they at the minimum put in their vat number, to establish they're not just some chancer trying to make a quick 15% ?

Cheers for illumination...

Si

 

[Archie]

I believe the rules changed a while ago meaning sellers had to include VAT in the final price. I've noticed a few people still saying that VAT will be added but have generally ignored their listings out of principle. Cheeky sods. not sure of the score on the VAT no. but if it's included on the price it shouldn't matter.

 

[Omniata]

Me too, I try to ignore the listings where VAT says it will be added afterwards...

If it looks like it's someone trying to make some "extra" money I'd also be inclined to report the listing if it's for something moderately expensive...
If a few get reported then the seller usually gets a warning or a temporary ban...

I think some sellers try to do it to stop eBay taking a cut off the price including VAT so they get more for themselves...

 

[rtbcomp]

Generally when selling to the public VAT must be included in the price. When selling to trade prices can be quoted inclusive or exclusive, but the position must be made clear.

This is why people like Machine Mart use dual price listing where they have a mix of trade and public customers.

If you want clarification go to Trading Standards, when I approached HMRC they didn't know!

 

[M1CDQ]

http://pages.ebay.co.uk/help/policies/png-vat.html

from the page on ebay

Laws and regulations dealing with VAT on sales transactions are complicated. These laws and regulations address, for example, whether a seller's business should be registered for VAT, whether a seller is required to charge VAT on sold items, and, if so, how much VAT should be charged on those items.

As eBay is primarily a consumer marketplace, from February 20th 2008, users will no longer be permitted to add VAT to the final item price after the item has been won.

If VAT is legally due, the seller bears the responsibility of paying that VAT to the appropriate authorities according to any applicable laws and regulations. If there is any question as to the seller's VAT responsibilities, the seller should consult an independent tax advisor and/or local tax authority.

Advice for UK Sellers

Sellers in the UK may find it useful to consult the HM Customs and Excise website, which addresses certain aspects of VAT and VAT registration.

Advice for Irish Sellers

Irish sellers may find it useful to consult the Irish Revenue Commissioners website which contains similar information.

 

[zardoz]

I didnt even realize that anyone could charge VAT on second hand goods as well? I see some of the big engineering liquidation companies doing so though. I think we should all report anyone who adds VAT to the final price. Lets do it and see if we can get the prices of those welders down.

 

[Unclefista]

If you're selling to the public (as you do on ebay) VAT "MUST" be included in the final price. If you want some fun, just buy it, then send payment by paypal for the full amout (minus VAT obviously) and see what happens

 

[Drains]

If you're selling to the public (as you do on ebay) VAT "MUST" be included in the final price. If you want some fun, just buy it, then send payment by paypal for the full amout (minus VAT obviously) and see what happens

Actually, what I did was pay the proper amount, then when the seller asked for vat, reminded him he was breaking the rules, offered to pay the vat, said life was too short to argue so please confirm the price etc. The seller got back and said thanks for the offer, but don't worry about it.

So everybody was happy.

 

[Welderpaul]

I've bought stuff off ebay where vat has been included. Asked whether a vat invoice will be provided before i have bid. Bid and get the item - no vat invoice. Keep chasing but no joy.
I think there's a few at it.

 

[snowcat]

funny I always quote work without VAT included and all the firms I deal with work the same, I use a suppliers that is trade and public and all prices are ex VAT, If you goto a real auction buyers fees and VAT are added after the auction.....

As long as its transparent and are properly registered, provide a VAT invoice at the end of the auction I don't see its a problem....you know the score before biding...

As an unpaid tax collector I do not see why I should lose 15% on the sale, its the very reason why I rarely do work for the general public, "ohhh if I just pay you cash you can lose the VAT"

On the charging VAT on S/H goods it makes no difference, If iv claimed the VAT on the original purchase then I have to pay the VAT on the resale and return it to the IR, machines are transparent and believe me the VAT man will quite happily trace these......

personally I know these ******s have more power than the police, IF the seller says +VAT, and is registered, pays the revenue on his return he has done everything correct........

 

[rtbcomp]

......, If you goto a real auction buyers fees and VAT are added after the auction.....

......

Depends.

VAT is added to fees &c (assuming the auction house is VAT registered) but only to the goods if the vendor is VAT registered.

 

[snowcat]

Depends.

VAT is added to fees &c (assuming the auction house is VAT registered) but only to the goods if the vendor is VAT registered.

yes but I'm guessing theres very few business that buy any amount of kit/turnover that are not reg, doesn't take long to hit a 50K threshold trust me..., Id much rather deal with a VAT reg person, it makes it/them A) look far less fly by night B) means I can claim the VAT back on labour or goods.....a bog standard invoice is of little use to me.....

put it like this, I am yet to go to auction that VAT hasn't been added on the final price, I'm guessing with ebay, any kind of tools etc could easily be argued that they are in fact a business item, and not aimed at the public......

 

[Weldingartisan]

I don't get it, what is the difference between buying off an e-bay business to any other? You should receive a VAT invoice the same as any other business. VAT is not voluntary, all those registered have to pay it back to HMRC. If you are not registered it is fraudulent to charge VAT, if you are registered it is fraudulent not to pay it, quite simple really. W/A