ebay and vat

bris

the_lunatic_is_in_my_head said:

northernstar007 said:

its a uk seller and nothing on the ebay page about vat to be added 
and yes using the desktop version

If the item is in the UK but the seller is in say China then eBay have to collect VAT for this situation as well.

If the item is in the UK then its already cleared customs and the VAT is paid.

prowla

northernstar007 said:

at the bottom of page next to seller address with vat no is "I provide invoices with VAT separately displayed"

very sneeky

Is that showing the VAT which is included in the price?

You will see that in many UK retail sales receipts.

the_lunatic_is_in_my_head

bris said:

the_lunatic_is_in_my_head said:

northernstar007 said:

its a uk seller and nothing on the ebay page about vat to be added 
and yes using the desktop version

If the item is in the UK but the seller is in say China then eBay have to collect VAT for this situation as well.

If the item is in the UK then its already cleared customs and the VAT is paid.

This refers to goods which are already in UK and then sold The seller may import them first, the goods may be manufactured here or the seller may simply be a dropshipper. 

I don't know what such sellers pay when their goods enter the country if they have imported them but obviously the amount of VAT due on a sale can't be determined until the sale has occurred so where the goods are already in the UK and then sold but the seller is based outside of the UK the threshold for VAT is zero and eBay collects the VAT on the sale price. 

sheramber

northernstar007 said:

hi there can anyone tell me if a retailer is allowed to at vat on a item on ebay
ive placed a bid on ebay normal way, then in the email as you get from ebay its saying there is vat to be added 
i always though the price on ebay is the price you pay

Have you asked ebay about it?

Sandtree

As others have said, I think you are misunderstanding the email and if your winning bid was £120 the invoice will simply show you paid £100 + VAT = £120 for the goods.

If the goods are outside the UK (which includes being in a bonded warehouse) and your winning bid inc P&P was under £135 then eBay is obliged to add VAT on top, if its over £135 then eBay will add nothing but you'll be charged the VAT, potentially duty and £12+ handling fee after they've been delivered.

The location of the seller is irrelevant 

theoretica

I have had a few strange 'VAT at 20%' pop up on ebay recently - but the end price I pay has not had anything extra added.

the_lunatic_is_in_my_head

Sandtree said:

As others have said, I think you are misunderstanding the email and if your winning bid was £120 the invoice will simply show you paid £100 + VAT = £120 for the goods.

If the goods are outside the UK (which includes being in a bonded warehouse) and your winning bid inc P&P was under £135 then eBay is obliged to add VAT on top, if its over £135 then eBay will add nothing but you'll be charged the VAT, potentially duty and £12+ handling fee after they've been delivered.

The location of the seller is irrelevant 

Seller location is relevant, there were UK changes as well as EU changes.  

You need to scroll down a bit but detailed below:

https://www.ebay.co.uk/help/listings/default/vat-obligations-uk-eu?id=4650

The UK changes at a glance

1. eBay is obliged to collect UK VAT on goods sold through eBay to UK customers in the following circumstances:
   • Goods imported into the UK, with a parcel value of up to £135. Note that there is no longer a VAT exemption for small consignments up to £15
   • Goods of any value sold by a non-UK seller and shipped from inventory stored in the UK. Sellers may still have UK VAT obligations and should consult their tax advisors for further information
   If an order fits either of these criteria, neither sellers nor carriers should collect VAT from UK buyers. eBay will collect the VAT from the buyer and remit it to HMRC.

To add the OP reads as if they have bid but the auction is yet to end and the email OP refers to is one eBay send to confirm your bid has taken place.  

northernstar007

thanks for all the replies 
the seller is 100% uk based and the item is 100% in the uk
a copy of my email from ebay 

Current bid: £950.00 20% VAT will apply Your max bid: £975.00

user1977

northernstar007 said:

thanks for all the replies 
the seller is 100% uk based and the item is 100% in the uk
a copy of my email from ebay 

Current bid: £950.00 20% VAT will apply Your max bid: £975.00

That doesn't mean they'll add 20% onto the bid - unless they've said that somewhere else?

northernstar007

thanks all ive had a read through the posts, so i take it thats the price with the vat added  at £950 adding another 20% is a bit steep