Ebay to collect VAT from high turnover sellers

martindow

Some good news from the budget is that Ebay and other large sales platforms will be required to collect VAT from accounts with a turnover above the annual VAT threshold (£90k). Above this figure, sellers should register and collect VAT.

Hopefully this will level the playing field to stop people who avoiding paying taxes as they should and are unfairly competing with sellers who do obey the law. I believe that this starts sometime next year.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6688692/ebay-to-collect-vat-from-high-turnover-sellers

Downside will probably mean that the VAT returns will have to change so you separate out revenue via platforms for which you will not be responsible for paying over yourself so at a minimum software changes and more complexity so more chances for mistakes.

Not against it but wonder how may are selling £90k via a single platform and still not VAT registered

martindow

True, but presumably Ebay will send a figure every quarter, or annually, and a box will be provided on the form for VAT already paid. Shouldn't be too onerous.

I've no idea how many businesses will be caught by this. There are certainly some operating as private sellers who clearly are businesses. They already are cutting corners by not showing a business address and not complying with returns policies, so who knows. Some may also have some explaining to do regarding previous tax years.

RFW

It's going to be in place for Q4 2027 and so far details haven't been given as to the exact situation.
It makes little difference to me at the moment. Possibly a bit of cashflow shuffling given that Amazon, etc will be keeping my VAT instead of me. On the plus side I only sell online so I probably will only be filing VAT returns to get a refund. That doesn't seem like it would work very well.
I'm guessing when it rolls out it will look a lot different to what it's been sold as and also guess that it won't be implemented until Q1 2028.