What's actually going on with the VAT thing?

lovinituk

JasonLVC wrote: »

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.

I am VAT registered so reverse charging is relevant for my eBay fees. In Sage 50 I enter them under nominal code T24 which then populates the relevant boxes on my VAT returns.

I would imagine that the message on marking_bads invoice is the same but because he is not VAT registered then it is irrelevant to him. Hence why it says "You may be required to account for VAT". If you're not VAT registered then you don't need to account for VAT.

JasonLVC wrote: »

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?

Correct. We're talking about the fees eBay charge.

marking_bad

Yes it does say the same on mine,

"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"

To my novice eyes (I have no idea what 'reverse charge mechanism' is), that sounds like they will bill me in the future to collect VAT, is that not what will happen?

lovinituk

marking_bad wrote: »

Yes it does say the same on mine,

"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"

To my novice eyes (I have no idea what 'reverse charge mechanism' is), that sounds like they will bill me in the future to collect VAT, is that not what will happen?

No thats not what will happen. If you are not VAT registered you do not need to account for VAT. That statement refers to those that are VAT registered.