eBay - Something in the water?!

the_lunatic_is_in_my_head

marie-20 wrote: »

With eBay's new TRS rules 1 day dispatch is, unfortunately, what it needs to be set at and 1 day dispatch has been on our listings for around 6 months so it's not that by itself that is the issue and we dispatch same day up to around 3pm which is more than expected but people seem to expect that things really will arrive within 2 days which the RM are doing in around 75% of orders

I understand that it may not be worth it to some but our average eBay fees are around £650 a month after our TRS discount of 15% is removed and as we are VAT registered the £650 is pre VAT so it is quite a large saving a month - well I think over £100 a month is but may be it won't be long term but being at the top of the rankings is a must in my sector.

Assuming you are set up correctly eBay deduct the (15%) VAT and then the FVF discount. If eBay aren't deducting the VAT on your invoices I don't think you can claim it back on your VAT returns.

If you are paying 12% FVF it's 10.43% after the VAT is removed and the 15% takes it down to 8.87% meaning you save £1.56 for every £100 worth of BIN by bending over to the new requirements but the FVF on the P&P element will eat into to that £1.56.

The discount is fine if it balances positively for you but is a small amount even if your turnover is high, the main advantage is the boost in search and possibly attracting those buyers actively seeking TRS sellers and picking them over standard sellers.

ballisticbrian

the main advantage is the boost in search

Having the new TRS rules will not affect your position in the search as long as you retain your overall top rated seller status.

the_lunatic_is_in_my_head

ballisticbrian wrote: »

Having the new TRS rules will not affect your position in the search as long as you retain your overall top rated seller status.

It's extremely likely eBay will move to feature TRS listings over non-TRS listings so whilst being TRS in general but not for a specific listing may give an advantage over a standard seller, the TRS seller with the TRS listing is bound to get prime exposure.

theonlywayisup

the_lunatic_is_in_my_head wrote: »

Assuming you are set up correctly eBay deduct the (15%) VAT and then the FVF discount. If eBay aren't deducting the VAT on your invoices I don't think you can claim it back on your VAT returns.

If you are paying 12% FVF it's 10.43% after the VAT is removed and the 15% takes it down to 8.87% meaning you save £1.56 for every £100 worth of BIN by bending over to the new requirements but the FVF on the P&P element will eat into to that £1.56.

The discount is fine if it balances positively for you but is a small amount even if your turnover is high, the main advantage is the boost in search and possibly attracting those buyers actively seeking TRS sellers and picking them over standard sellers.

Having recently had a VAT inspection I concur with this.

I was reverse accounting for the VAT in SAGE and was told by HMRC to ignore it completely. The VAT is paid at source on services in the EU B2B so doesn't factor in your VAT return.

OP, I am assuming you have set yourself up correctly on Ebay. They will add your VAT number and deduct the 15% VAT at source. So your invoice with not include VAT and there is none to reclaim.

ballisticbrian

It's extremely likely eBay will move to feature TRS listings over non-TRS listings so whilst being TRS in general but not for a specific listing may give an advantage over a standard seller, the TRS seller with the TRS listing is bound to get prime exposure.

I disagree. eBay have made it clear this is not the case and I think the reason is they make good money and get fewer customer support calls from good sellers whereas it's an arbitary decision whether to follow the new TRS rules or not. In other words having good sellers from TRS ratings speaks for itself whether or not you sign up to this or that.

the_lunatic_is_in_my_head

theonlywayisup wrote: »

Having recently had a VAT inspection I concur with this.

I was reverse accounting for the VAT in SAGE and was told by HMRC to ignore it completely. The VAT is paid at source on services in the EU B2B so doesn't factor in your VAT return.

OP, I am assuming you have set yourself up correctly on Ebay. They will add your VAT number and deduct the 15% VAT at source. So your invoice with not include VAT and there is none to reclaim.

The VAT advice line line told me to add VAT at 20% to the net fees as in input and then reclaim it as an output so the final figure is the same but it's in the books.

OP the same applies to Amazon, if you supply your VAT number all your fees will be displayed and invoiced net of VAT (although unfortunately at the Luxembourg rate of only 15%).

theonlywayisup

the_lunatic_is_in_my_head wrote: »

The VAT advice line line told me to add VAT at 20% to the net fees as in input and then reclaim it as an output so the final figure is the same but it's in the books.

This is what I was doing. My accountant advised me to do it this way and called it the reverse accounting method. However HMRC in person this May, advised otherwise. So I shall take them at their word, apparently the VAT system for EU B2B on services changed in January this year.

the_lunatic_is_in_my_head

ballisticbrian wrote: »

I disagree. eBay have made it clear this is not the case and I think the reason is they make good money and get fewer customer support calls from good sellers whereas it's an arbitary decision whether to follow the new TRS rules or not. In other words having good sellers from TRS ratings speaks for itself whether or not you sign up to this or that.

http://sellerupdate.ebay.co.uk/spring2013/ebay-top-rated-seller

Will I receive the best visibility if I meet the new eBay Top-rated seller requirements?
Yes. Sellers who meet the new requirements will benefit from improved visibility.

ballisticbrian

That's a bit misleading, becuase it's the same improved visibility you get from having top-rated-seller status. A bit naughty of eBay that.

the_lunatic_is_in_my_head

theonlywayisup wrote: »

This is what I was doing. My accountant advised me to do it this way and called it the reverse accounting method. However HMRC in person this May, advised otherwise. So I shall take them at their word, apparently the VAT system for EU B2B on services changed in January this year.

I see, I wasn't sure what reverse accounting was. Yes I'd take the inspector's word over anything else!