Comments on: VAT-reg sellers must include tax in listing prices

By: Spainair sell off flights on eBay : TameBay

Spainair sell off flights on eBay : TameBay — Wed, 20 Feb 2008 19:40:56 +0000

[...] do not include the applicable taxes or commissions.” eBay have other initiatives to encourage price transparency, so that element seems likely to lead to trouble if buyers have to pay much more than [...]

By: Josordoni

Josordoni — Mon, 18 Feb 2008 12:39:57 +0000

Actually Steve, at B&M auctions in the UK ,other than in rare cases, items are offered under the auctioneers margin scheme. The hammer price is deemed to include VAT at 17.5%, and may not be treated as input tax for VAT purposes, the only thing liable to additional VAT is the auctioneer’s commission (aka the buyers premium), which has VAT levied (and reclaimable) in the normal way.

For any eBay auction item, if it is a new item and subject to VAT, the VAT man would consider that the final auction price would include an element of VAT if it was to be delivered to UK/EU, and would be a net price not including VAT if it was to be delivered to ROW.

Second hand items are not subject to VAT in the normal way, but if the seller’s turnover means that they are liable for VAT registration, then they will calculate the VAT on the Margin Scheme, which levies the VAT on the seller’s profit margin. However, VAT may not be charged to the buyer in this case.

Then there are the various Flat Rate schemes – I don’t know about those, hopefully someone who does will be along later….

By: steve

steve — Mon, 18 Feb 2008 10:32:07 +0000

Won’t this be very mis-leading then to all buyers not located in the UK? VAT is charged based on the destination country.

Also, how can VAT be expected to be included on an Auction? If you go to any auction you are paying the Hammer price, plus VAT, plus a buyers premium.

By: RG

RG — Thu, 31 Jan 2008 15:56:46 +0000

I am in the about time group too. I have always included VAT in my prices, I think most of people buying anything on ebay assumes the final price includes VAT (even B2B). It would be nice if ebay made an allowance for the VAT on the FVF but it at least it is now means a level(er) playing field for all.

By: Owen

Owen — Thu, 31 Jan 2008 13:15:09 +0000

I class my sales as B2B on the basis that anybody buying a vending machine will be using it for or in business.

Even so I have been listing VAT inclusive. If other sellers have to do the same it will level the playing field a bit for me and saves me having to use subtitle to highlight that my prices are VAT inclusive.

By: Biggles

Biggles — Thu, 31 Jan 2008 11:22:34 +0000

Indeed Biddy.

Whirly do a title search for VAT to see what other people do.
Look at this joker: 150209267379 The body doesnt load for me at all, but he lists 299 + VAT in the title, but the starting bid includes the vat at 351.33.

By: Sue Bailey

Sue Bailey — Thu, 31 Jan 2008 10:52:45 +0000

Ah well. Every cloud has a silver lining Biggles

By: Biggles

Biggles — Thu, 31 Jan 2008 10:44:29 +0000

Regarding VAT for non-EU buyers.. not really a problem anymore for me. Remember those well thought out changes last year to searching?? Well, I went from about one sale a day to North America down to one sale approx every 45 days. Listing directly on .com didnt revive them at all

Obviously that is my fault.

By: whirly

whirly — Thu, 31 Jan 2008 10:28:42 +0000

I will have to stop auctions now I clearly stated at least 3 times VAT would be added and never had a problem, but I couldn’t take the risk on running a VAT inclusive auction now my items are to valuable and the VAT amount to large.

By: Dan Wilson

Dan Wilson — Thu, 31 Jan 2008 00:51:40 +0000

I back this. It just makes sense.

I bought something a few months ago… and got stung for VAT (it was in the very small print).

Yup. Should’ve read it. But I didn’t. But actually it was the seller who was bearing the brunt. His Feedback was terrible.

It just pays to be upfront.