VAT Paypal and ebay fees

lucielle

I currently have a business on ebay and am VAT registered. How do I claim 15% ebay Luzembourg (sp) VAT back and does Paypal charge VAT on their fees. If so how do I go about reclaiming those.

Thanks in advance
L

Premier_2

Regarding the VAT on ebay fees, I don't think you can reclaim it easily, unless perhaps you happen to be registered for VAT in Luxemborg.

However, you may be able to apply for the fees to be charged at the VAT exempt rate, but then you'll need to account for that on your VAT return
More details here:
http://pages.ebay.co.uk/vat-landing/general/

Regarding paypal, I believe their transaction charges are exempt from VAT. At least, financial transaction charges should be exempt from VAT (like bank fees are)

martindow

If you give them your UK VAT number should they not charge you the net value with no local VAT? If you are UK VAT registered, goods are supplied from other EU countries without their VAT being added and vice versa. I assume that this applies equally to services.

You account for UK VAT on the imports but of course set this figure off against VAT you collect on sales.

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074416497&type=RESOURCES

theonlywayisup

martindow wrote: »

If you give them your UK VAT number should they not charge you the net value with no local VAT? If you are UK VAT registered, goods are supplied from other EU countries without their VAT being added and vice versa. I assume that this applies equally to services.

You account for UK VAT on the imports but of course set this figure off against VAT you collect on sales.

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074416497&type=RESOURCES

I can verify this to be the quickest and easiest course of action.

I used the http://pages.ebay.co.uk/help/account/vat-ov.html to register with Ebay for VAT free status, all they required was a copy of my VAT certificate faxed to them. Since then all my fees are VAT free.