What's actually going on with the VAT thing?

marking_bad

lovinituk wrote: »

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.

That's just your take on it, which may turn out to be true, or may not, but until ebay clarify it, there is confusion, and it's disgraceful considering it involves fees.

But a lot of people are questioning why non VAT reg sellers won't be paying VAT. Who is swallowing the loss of revenue from this sudden decrease in fees? What proof do they require? You could speculate a tax number of some kind.

All speculation, no concrete word from ebay. Unacceptable.

lovinituk

LOL, ok I'll leave you all to it. Good luck!

RFW

marking_bad wrote: »

That's just your take on it, which may turn out to be true, or may not, but until ebay clarify it, there is confusion, and it's disgraceful considering it involves fees.

But a lot of people are questioning why non VAT reg sellers won't be paying VAT. Who is swallowing the loss of revenue from this sudden decrease in fees? What proof do they require? You could speculate a tax number of some kind.

All speculation, no concrete word from ebay. Unacceptable.

It sounds like what should be happening and what is happening has become confused, probably a fault in Ebay's system. Given that it's a big overnight change and their past track record, it's hardly surprising that it's a mess.

mgdavid

Brooker_Dave wrote: »

Perhaps we should all start giving the Germans 20% of our turnover just to be on the safe side?

EU arrest warrants and all that...

VAT's only 19% in Germany...

patman99

I can foresee that the VAT rate in Luxemberg will increase due to the lack of income from VAT now that the loophole has been closed.

It does, however, pose a problem for those of us who sell images via our own sites rather than via photo-stock sites such as Alamy & Getty Images (these sorts of sites sell the image to the customer and then pay the author a commission fee, so they handle the VAT).

marking_bad

Just got my invoice, and in it says something like VAT can be collected whenever they want. So no doubt they will collect eventually to those not paying VAT and aren't VAT registered.

lovinituk

marking_bad wrote: »

Just got my invoice, and in it says something like VAT can be collected whenever they want. So no doubt they will collect eventually to those not paying VAT and aren't VAT registered.

Can you state exactly what it says rather than 'something like that'?! This is an EU ruling, not a five-minute-wonder ebay rule.

lovinituk

I've just looked at my invoice and what it actually says is...

"The above amounts don't include VAT. You may be required to account for VAT under the reverse charge mechanism, subject to your local VAT rules."

Which is not even close to what you said! Unless yours says something different?

marking_bad

Will post what it says when i get home later tonight

JasonLVC

lovinituk wrote: »

I've just looked at my invoice and what it actually says is...

"The above amounts don't include VAT. You may be required to account for VAT under the reverse charge mechanism, subject to your local VAT rules."

Which is not even close to what you said! Unless yours says something different?

That doesn't sound like anything has actually changed as yet.


Reverse charge is where you buy from a VAT registered business in Europe and you yourself are VAT registered. Instead of the French seller charging French VAT (which you can't get back on your UK VAT return), the seller would not charge VAT and you would then calculate UK VAT on the invoice and declare it in Box 2 of your VAT return and reclaim it in Box 4.


Is this invoice for the fees being charged by ebay themselves for their service of listing the product rather than the actual thing being sold?