Paying VAT on winning item!

silkyuk9

i quickly went onto ebay to get a cheapish graphics card, with only a few minutes to go i saw one for £16-99 Nvidea 7200.

i tried to pay using paypal £16-99 plus £6-99 postage but there was an extra £4 for VAT. i went back onto ebay to read the small print on the description of the item i won.

We accept payment by: Paypal
Payment must be received within 7 days after item is won.
All prices EXCLUDE VAT @ 17.5% Total price will be worked out as follows:
Auction End Price or Buy It Now Price + Postage Costs + VAT @ 17.5%
Per eBay rules, we reserve the right to reject winning bids from any user with hidden information or negative feedback for none payment, or from users who have violated the terms of any of our past auctions.


with the extra VAT i did not save any money, but is the right, can sellers charge VAT. i guess this is a company of some sort.

jonesMUFCforever

Retailers have to quote VAT in their prices unless it is a wholesaler.
For £4 it is hardly worth your taking this much further - you could decide to tell them to stuff or you can take the hit and then complain to Ebay.

frivolous_fay

There's nothing to complain about, it was stated upfront. Ebay sellers can charge VAT as long as it's stated, and they have a VAT number. You could ask to see it if you're suspicious.

Mozette

If they don't give their VAT number ask for it, if they don't provide one, dob them in to HMRC.

geordie_joe

frivolous_fay wrote: »

There's nothing to complain about, it was stated upfront. Ebay sellers can charge VAT as long as it's stated, and they have a VAT number. You could ask to see it if you're suspicious.

No, sellers can only charge VAT if they are registered for VAT. Simply stating that they charge VAT is not enough!

The company must have annual sales of at least £62,000 before they can charge VAT.

You can check the company VAT number by phoning 0845 010 9000 don't just accept that a number they give you is correct.

geordie_joe

Just had my calculator out and found the company has charged you VAT on the postage.
You don't charge or pay VAT for postage if the PO is used.

1. The conveyance of postal packets by the Post Office company.
2. The supply by the Post Office company of any services in connection with the conveyance of postal packets.
Notes:
(1) "Postal packet" has the same meaning as in the Postal Services Act 2000.
(2) Item 2 does not include the letting on hire of goods.

Not sure about a courier service, but if the item was sent via the PO the company has committed an offence by charging VAT on something the is exempt. You can bet your life they won't be passing it on the VAT man either.

TKPeters

You can verify VAT numbers online
http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN

geordie_joe wrote: »

Just had my calculator out and found the company has charged you VAT on the postage.
You don't charge or pay VAT for postage if the PO is used.

Not true if the postage cost is P&P, as you can charge VAT if someone is paid to pack/handle the item.

Although we include VAT in our prices, it does annoy us when everyday 'consumer goods' such as pc parts are ex VAT on eBay, as ex VAT Pricing is a Business2Business practice, due to the Business being able to offset the VAT Charged.

geordie_joe

TKPeters wrote: »

You can verify VAT numbers online
http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN

Thanks, anything that beats the old 0845 number gets my vote.

Time2Go_25

geordie_joe wrote: »

The company must have annual sales of at least £62,000 before they can charge VAT.

No they don't any business can be VAT registered if they so wish.

Time2Go_25

geordie_joe wrote: »

Just had my calculator out and found the company has charged you VAT on the postage.
You don't charge or pay VAT for postage if the PO is used.

Not sure about a courier service, but if the item was sent via the PO the company has committed an offence by charging VAT on something the is exempt. You can bet your life they won't be passing it on the VAT man either.

Not quite correct there is no VAT on stamps, however postage and packing is a service and as such VAT can be charged.

deanos

geordie_joe wrote: »

Just had my calculator out and found the company has charged you VAT on the postage.
You don't charge or pay VAT for postage if the PO is used.

Not sure about a courier service, but if the item was sent via the PO the company has committed an offence by charging VAT on something the is exempt. You can bet your life they won't be passing it on the VAT man either.

You do pay VAT if its a vat registered business on post sent via royal mail