What's actually going on with the VAT thing?

marking_bad

Anyone know if shop fees and paypal fees are affected? The lack of information from ebay on these changes is a disgrace, but I'm not shocked by that.

(wish I hadn't posted that telegraph article now, as it's all euro talk in here, not ebay talk)

lovinituk

Brooker_Dave wrote: »

But what happens when you have to employ 28 accountants just to be able to trade to our European bretheren?

It wouldn't be difficult with the right software. You certainly wouldn't need multiple accountants. I could easily do it with the software we already use and a little bit of reconfiguring (Linnworks and Sage).

lovinituk

marking_bad wrote: »

Anyone know if shop fees and paypal fees are affected? The lack of information from ebay on these changes is a disgrace, but I'm not shocked by that.

(wish I hadn't posted that telegraph article now, as it's all euro talk in here, not ebay talk)

It was announced a while ago...

http://sellercentre.ebay.co.uk/eu-vat-legislation-changes

JasonLVC

Marktheshark wrote: »

What they are hiding is that the EU now has the power to directly set tax rates on the UK and we can do nothing about it.

The "EU" cannot set tax rates at a domestic level. What the Eu can do is implement legislation - with the agreement of all 28 member states - that harmonize the laws across the EU as a whole.

So, UK government can set the VAT and direct tax rates to whatever they want, but the collection of said taxes is based upon the EU law itself, so this is why the UK cannot just scrap VAT on say petrol as the EU law states nobody can do this.

Different EU member stares have different rates of VAT. UK has 20%, but it is higher (or lower) across the other 27 member states. It is lowest in Luxemburg (3% for digital books, 17% for everything else). In UK it is 20% for digital books and everything else.

This is why the big corporates are based there, all the VAT revenue goes to the already ultra-rich Luxemburg government, not the UK taxpayer.

marking_bad

lovinituk wrote: »

It was announced a while ago...

http://sellercentre.ebay.co.uk/eu-vat-legislation-changes

I know and it's too little information. And they just give copy and paste responses to questions asked by sellers, how is VAT collected, what proof do they need etc

lovinituk

marking_bad wrote: »

I know and it's too little information. And they just give copy and paste responses to questions asked by sellers, how is VAT collected, what proof do they need etc

If you're a business seller not selling digital goods and you're not currently VAT registered then you don't need to do anything at the moment. You will actually be better off as eBay will no longer be charging you VAT on your fees.

ballisticbrian

If you're not selling digital goods and you're not currently VAT registered then you don't need to do anything at the moment. You will actually be better off as eBay will no longer be charging you VAT on your fees.

I understood it that unless you enter a valid VAT number into eBay, you'll still be charged VAT.

marking_bad

lovinituk wrote: »

If you're a business seller not selling digital goods and you're not currently VAT registered then you don't need to do anything at the moment. You will actually be better off as eBay will no longer be charging you VAT on your fees.

ballisticbrian wrote: »

I understood it that unless you enter a valid VAT number into eBay, you'll still be charged VAT.

Exactly this right here, no one knows !!!!!! is going on, it's all speculation atm and ebay are keeping quiet for some reason. Considering this involves fees, and the margins are so tight for some sellers, it's a disgrace (hence why I started the thread)

lovinituk

ballisticbrian wrote: »

I understood it that unless you enter a valid VAT number into eBay, you'll still be charged VAT.

Look in the FAQ at the bottom of my link...

"Without your VAT ID on file we may need to contact you for alternative evidence that you are a business."

Marking_bad has said they are already seeing cheaper fees and I assume they are not VAT registered.

This is actually an extra advantage for non VAT registered businesses over those of us who are VAT registered.

lovinituk

marking_bad wrote: »

Exactly this right here, no one knows !!!!!! is going on, it's all speculation atm and ebay are keeping quiet for some reason. Considering this involves fees, and the margins are so tight for some sellers, it's a disgrace (hence why I started the thread)

It all seems pretty clear to me. There may be a few sellers who need to prove to eBay that they are actually businesses but as long as they are legit that can easily be done without VAT registration.