OT: Ebay to charge sellers VAT

[John Bennett]

[ukvac] OT: Ebay to charge sellers VAT
From 1st July:

http://www2.ebay.com/aw/marketing-uk.shtml#033103155508

So what's the best way of getting around this?

Gary.



DATA Imported from archives: originally posted by shepg2002 (lists@ntlworld.com)

 

[guddler]

RE: [ukvac] OT: Ebay to charge sellers VAT
Ummm, 2 things spring to mind:

1. Don't sell on eBay
2. You don't!!

Actually, I guess there's a third:
3. Register a legitimate UK company, turn over in excess of £52kpa, and then
you can "avoid" paying VAT.

VAT rules suck, but sadly, they are things that can be dodged lightly unless
you like your room with a view to have bars :O)

Gudd.
PS: Nice of them to email all their sellers and tell them mind...

 

[system11]

Build it into your starting price, and have a bit of small print saying the buyers have to pay 17.5% of the ebay commission based on ending price.

On Wed, 2003-05-21 at 00:55, shepg2002 wrote: > >From 1st July: > > http://www2.ebay.com/aw/marketing-uk.shtml#033103155508 > > So what's the best way of getting around this? > > Gary. > > > > > >  > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ --

bloodflowers2010-07-15 08:03:31

 

[Macro]

RE: [ukvac] OT: Ebay to charge sellers VAT
emigrate

 

[robotronuk]

RE: [ukvac] OT: Ebay to charge sellers VAT
errr go leggit trade via a vat registered
company and don’t the vat?

from ebay
"This will include details about how business sellers can submit
information to avoid being charged VAT on eBay fees"

Cheers
Lee

 

[John Bennett]

[ukvac] Re: OT: Ebay to charge sellers VAT
I was thinking along the lines of creating a new Ebay account
on Ebay USA and then selling in the UK if that's possible.

Probably too risky though.

Gary.



DATA Imported from archives: originally posted by shepg2002 (lists@ntlworld.com)

 

[LukeWells]

Re: [ukvac] Re: OT: Ebay to charge sellers VAT
Well that will work for people that registered on ebay before ebay.co.uk
existed P-man? And have a US account

 

[Macro]

RE: [ukvac] Re: OT: Ebay to charge sellers VAT
>Well that will work for people that registered on ebay before ebay.co.uk
>existed P-man? And have a US account

maybe that will get rid of all the t*ssers who are not in the UK, but claim
to be.

I once complained to ebay uk that I had selected the 'items in UK' button,
but the listings were full of people who were selling from
USA/Canada/Singapore etc - so whats the bloody point of the button.

(this was searching for DVD's where almost every DVD was being sold by some
american company who then wanted £5 to post them to the UK so I didn;t
really want to have then included, and it seemed fair to me that I would
only get them listed if I selected 'available to UK' rather than 'in UK'
since they obviously were not - ebay of course, declined to do anything (as
usual))

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[evo666]

Re: [ukvac] Re: OT: Ebay to charge sellers VAT
>>> ukvac@jigsawtechnologysolutions.com 21/05/2003 10:28:34 >>>
>Well that will work for people that registered on ebay before ebay.co.uk
>existed P-man? And have a US account

it's an (almost) interesting point. i've been registered for about 4 years now, before the rest of the world existed, according to ebay, and i'm still billed in dollars. wonder how they're going to sort that one out and charge me VAT on foreign currency...

M.

 

[John Bennett]

[ukvac] Re: OT: Ebay to charge sellers VAT

Is someone has a company exempt from VAT, charge ebay users a small
fee to advertise on ebay through yourself. Set up an Escrow service,
and become an ebay millionaire...easy.



DATA Imported from archives: originally posted by dan_cooksey (dcooksey@peakeurope.com)

 

[LukeWells]

Re: [ukvac] Re: OT: Ebay to charge sellers VAT
In order to avoid paying Vat on top of ebay listings, move to yahoo auctions
or QXL

If they have to charge vat, they have to charge vat, there is not much you
can do about it.

You could set up a LTD company and become VAT registered (There is no
minimum turnover, it is voluntary, it just becomes compulsary at £52K) Only
thing is, if you register for VAT, you wont pay it on the listing fees, but
will pay it on the value of items that you sell. As VAT reged you will have
to add 17.5% to the end price, which will put bidders off. This is not going
to help you.

Also if you regiser as a business, blah blah, just to avoid paying a few
pence VAT on the listing fee, when you do your TAX return you will pay VAT
on all the items out of your own pocket!

There is no way of avoiding it, you will just end up paying more VAT. Is it
worth it?

Luke

 

[Alpha1]

Re: [ukvac] Re: OT: Ebay to charge sellers VAT
So it's just the listing fee that is being charged VAT?....

If that's it then I don't see what the fuss is about i'm afraid.

Who gives a fuck about VAT even if the list fee is £5.

oll

 

[John Bennett]

[ukvac] Re: OT: Ebay to charge sellers VAT
Isn't the VAT charge only on the sellers fees? The money that ebay take from us?

Surely it'll only add a few pence to each transaction, unless you are regularly giving ebay fees in the hundreds

Or am I reading it wrong?



DATA Imported from archives: originally posted by (John.F.Lewis@btinternet.com)

 

[John Bennett]

RE: [ukvac] Re: OT: Ebay to charge sellers VAT
No it's all fees:

"...including insertion fees and final value fees, by sellers who reside in
the European Union."

So for every £100 you have as fees at the moment it'll be £117.50 which is
(when you add on paypal fees etc.) a fair bit.

I think most people will add this onto the final amount payable by buyers.



DATA Imported from archives: originally posted by Tucker, Norley C (norley.tucker@eds.com)

 

[zepromz]

Re: [ukvac] Re: OT: Ebay to charge sellers VAT
At 12:21 21/05/2003 +0100, you wrote:
>So it's just the listing fee that is being charged VAT?....
>If that's it then I don't see what the fuss is about i'm afraid.
>Who gives a fuck about VAT even if the list fee is £5.

I fucking do when my monthly fees are £300+
Thats £600 a year in VAT mate, of course you dont care cuz your loaded...

 

[John Bennett]

Re: Re: [ukvac] Re: OT: Ebay to charge sellers VAT
> At 12:21 21/05/2003 +0100, you wrote:
> >So it's just the listing fee that is being charged VAT?....
> >If that's it then I don't see what the fuss is about i'm afraid.
> >Who gives a fuck about VAT even if the list fee is £5.
>
> I fucking do when my monthly fees are £300+
> Thats £600 a year in VAT mate, of course you dont care cuz your loaded...
>

It's not really ebay's fault is it? .. Customs and Excise are real nasty people and Ebay have to do what they're told or have their assetts seized!

If you sell something at a traditional auction, isn't VAT charged on the sellers fees too?

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DATA Imported from archives: originally posted by (steve@coule.freeserve.co.uk)

 

[d-type]

[ukvac] Re: OT: Ebay to charge sellers VAT
There seems to be a lot of people on this list who don't understand
how VAT works.

VAT is a tax on user consuption, so if you buy a stereo, you are the
consumer and you pay the tax. If you personally sell it on at a
profit (like you try to do on eBay), you don't have to charge VAT, as
you've already paid it when you bought it. As the VAT is charged
before you've added on your own margin, the Inland Revenue loses out.
This is why it is mandatory to register for VAT when your sales are
over £54000.

Companies who are VAT registered charge VAT on top of their prices
they sell stuff for, but they can also claim back the VAT on goods
they buy. If you are selling to end users, then there's no point in
being VAT registered as you end up paying more than you can claim
back.

If you're selling the business customers, then NOT being VAT
registered is a problem, as you cannot claim the VAT back on goods
you buy, and your customer cannot claim the VAT back on what you sell
to them. (I.e. you end up paying the VAT, and your customer can't
claim it back - Inland Revenue is quids in.)

This sounds like a lot of pissing about, but it makes sense. If you
couldn't claim the VAT back, then every time an organsation traded,
it would cost them a chuck of margin, thus making trade impossible.
This would result in only large companies that, could dig stuff out
of the ground, process it and sell it to you directly, with no
trading going on to cut costs. (Some countries do actually have this
system, however!)

When you pay eBay to use it's auction services, you are the consumer
of service, and so you are charged VAT on it (or at least you should
be). Ebay will then give you a VAT reciept, and if you are VAT
registered, you can claim the VAT back, as long as you charge VAT on
the goods you sell on, which you probably won't, as your sales are
typically going to an end consumers who can't claim it back anyway,
and thus your prices would effectively be raised by 17.5%.

I can't believe that eBay weren't charging VAT already. If you were
in the same situation as eBay, you'd be shitting yourself that you
were going to have to put your prices up by 17.5% and likey to lose
loads of customers to the competition.

Unfortunately, eBay don't have any real competition :-(

D-Type

 

[andyrcole]

RE: [ukvac] Re: OT: Ebay to charge sellers VAT
£300 monthly fees = £52.50 monthly vat to pay
£300 monthly fees = £6000 monthly income at least, assuming you're not
putting a reserve price on every auction.

I think you'll live! ;o)

Andy.

 

[John Bennett]

[ukvac] Re: OT: Ebay to charge sellers VAT
Yet another reason why I hate the EU sticking their nose in where its
not wanted.

I understand that certain parts of the British Isles are not under EU
regulations such as the Isle Of Man, Jersey Gurnsey etc.

I remember a couple of years back now when they introduced tax on
betting all the betting companies move their HQ's to Gibraltar as it
was not under the EU but still a British Terriotry and a member of
the commonwealth.

I wonder if its possible to 'claim' you live in the UK but outside of
the EU like the betting shops did?

David Wragg



DATA Imported from archives: originally posted by David Wragg (djwragg@hotmail.com)

 

[robotronuk]

RE: [ukvac] Re: OT: Ebay to charge sellers VAT
>Yet another reason why I hate the EU sticking their nose in where its
>not wanted.

Wrong, they are doing to level the playing field for all companys
trading within europe. QXL although they don’t advertise the fact
trade from the UK so all their fee`s are vat inclusive and still
lower than ebays.

If you follow the computer news services you will know that freeserve
have been complaining about AOL for years as they don’t pay a penny
of tax in the uk and no VAT on there fee`s where freeserve does. The
new rules now mean AOL must pay the tax they have managed to avoid
for years by claiming there service is outside the EU.

>I understand that certain parts of the British Isles are not under EU
>regulations such as the Isle Of Man, Jersey Gurnsey etc.

hmm the words "Tax" and "Havens" comes to mind, try to buy property
their
or move there on a permant basis you need a lot of ££££££££

>I remember a couple of years back now when they introduced tax on
>betting all the betting companies move their HQ's to Gibraltar as it
>was not under the EU but still a British Terriotry and a member of
>the commonwealth.

Wrong, betting tax was something that was brought in by one of the
previous
UK governments not the EU. You paid a 9% tax on either your stake or
on you winnings (your choice), moving their operations offshore to
Gibralatar allowed
them the to accept telephone/internet bets without taxing the punter.
Gordon Brown changed the tax rules to scrap betting duty in favour of
an extra tax on the proffits of the bookmakers instead. Some companies
moved there operations back to the uk, but some still have their
operations
offshore as they run services that are illegal to operate in the UK
such casion type games etc

Cheers
Lee

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