Amazon and eBay evict sellers

Options
Tallaght
Tallaght Posts: 1,632 Forumite
First Anniversary Combo Breaker First Post
in Ebay, auctions, car boot sales, post & parcels
https://www.bbc.co.uk/news/business-46838687


Thousands of overseas sellers have been evicted from online marketplaces in the UK such as Amazon and eBay owing to a tax crackdown.

Businesses, mostly from China, sold items including British flags, phones and fake eyelashes but evaded VAT.

HM Revenue and Customs (HMRC) sends notices to seven different online sales sites if it discovers businesses failing to pay the correct VAT.

It said that 4,600 sellers have been "red-flagged" in this way.
«1

Comments

  • Brywalker
    Brywalker Posts: 319 Forumite
    First Anniversary First Post
    Options
    This can only be good news for legitimate sellers.
  • olgadapolga
    olgadapolga Posts: 2,273 Forumite
    Name Dropper First Post First Anniversary Xmas Saver!
    Options
    Unfortunately it's only 4,600 of them.
  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
    First Anniversary Name Dropper First Post
    Options
    4600 accounts? Probably a dozen or so sellers.

    Some have many accounts.
    Censorship Reigns Supreme in Troll City...

  • Twopints
    Twopints Posts: 1,770 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Amazon chucking people off for tax avoidance - oh, the irony...

    :beer:
    Not even wrong
  • ballisticbrian
    ballisticbrian Posts: 3,937 Forumite
    First Anniversary First Post Combo Breaker
    Options
    I would like to see how they stop them simply creating new accounts, if they haven't already done so. I expect they have contingency plans a long time ago.
    Warning: any unnecessary disclaimers appearing under my posts do not bear any connection with reality, either intended, accidental or otherwise. Your statutory rights are not affected.
  • martindow
    martindow Posts: 10,218 Forumite
    Name Dropper First Post First Anniversary
    Options
    It is good news that these sellers are being targeted. It is only happening because HMRC are holding selling sites liable for the lost VAT if they don't take down accounts after being warned of tax evasion.


    Hopefully the next step is HMRC to require Ebay and Amazon to report and close down any sellers over the VAT threshold.
  • shaun_from_Africa
    shaun_from_Africa Posts: 12,858 Forumite
    Name Dropper First Post First Anniversary
    Options
    Twopints wrote: »
    Amazon chucking people off for tax avoidance - oh, the irony...

    :beer:

    Not true.
    They are kicking people off for tax evasion.
    Tax evasion is illegal whereas tax avoidance , which is what Amazon do is legal.

    Being totally honest, wouldn't you pay less income tax, VAT. fuel duty etc if the way you did this was legal?
    I know that I would and so would any sensibly run business and all that Amazon (and other companies) are doing is making use of various legal tax avoidance schemes that are in place. If the government doesn't like these then shut those schemes down.
  • soolin
    soolin Posts: 72,199 Ambassador
    Photogenic Name Dropper First Post First Anniversary
    Options
    Ebay have already started doing something odd, but as it is ebay they appear to be messing it up. According to several posts on other forums that have been discussed now for around 6 months ebay have been putting holds on accounts until VAT numbers are supplied and checked. This sounds brilliant in practice, except that some of the people (possibly even in the majority) are either small traders with turnover of less than £20, 000 or even private sellers with a handful of sales.

    Ebay have been telling those affected that all sellers are required to have a VAT number and only back down and admit to a glitch when questioned very forcefully!

    Even when I used to sell on Amazon I had my account on hold for weeks as I couldn't supply a bank account (the one I had been using for around 17 years!) in my Amazon name, so say for instance I am Soolin Smith (real legal name and on my bank account) but my selling account showed the name 'pink fluffy bunny' they insisted I had to have a bank account in the name 'pink fluffy bunny'. I ended up emailing tax records showing I correctly trade as a sole trader in my legal name of Soolin Smith (as registered with Amazon) and one of the names I use to sell is 'pink fluffy bunny'.
    I’m a Forum Ambassador and I support the Forum Team on the eBay, Auctions, Car Boot & Jumble Sales, Boost Your Income, Praise, Vents & Warnings, Overseas Holidays & Travel Planning , UK Holidays, Days Out & Entertainments boards. If you need any help on these boards, do let me know.. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.All views are my own and not the official line of MoneySavingExpert.
  • martindow
    martindow Posts: 10,218 Forumite
    Name Dropper First Post First Anniversary
    Options
    What a drama soolin and very annoying for you.



    But it must be good that Ebay are taking more seriously their responsibilities to check sellers and are hopefully tipping off HMRC so that they can check tax is being correctly paid (not just VAT).
  • twhitehousescat
    twhitehousescat Posts: 5,368 Forumite
    Name Dropper First Post First Anniversary
    Options
    many vat numbers quoted by chinese sellers are fake - take one at random and put it into google , a hundred names come up , sometimes even legit UK companies not related to ebay come up as well!

    a member of the public cannot at present check any UK register to check if a vat number is genuine or fake

    we had this problem with a UK private parking co , we knew they were using fake number , a lot of people tried all methods of putting name to number , there is non
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards