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eBay EU VAT changes from 1st Jan 2015

By Chris Dawson November 4, 2014 - 5:40 pm

eBay are changing the VAT rates that you will be charged from the 1st January 2015.

It won’t just be eBay that make changes, EU legislation is changing the way VAT is charged on electronically supplied services (which includes eBay fees) and in the future VAT will be applied based on the country the customer is located, rather than where the supplier is headquartered.

All . For sellers who have already registered a VAT ID with eBay, they will not notice any change. eBay business seller fees will be displayed as net prices on the fee pages after 1 January

How the changes will affect you

Consumers

Consumer sellers will see no change to the total amount that they pay. eBay will still keep the same fee schedule but, instead of including VAT at 15%, fees will include VAT at 20% from 1st January 2015.

VAT registered sellers who have supplied their VAT number to eBay

eBay say that you won’t notice any financial change, you will already be paying fees net of VAT. The only change you’ll see is cosmetic in the way fees are displayed

VAT registered sellers who have NOT supplied their VAT number to eBay

Currently you’ve been paying eBay fees including VAT. From the 1st of January you’ll start paying eBay fees net of VAT, but if you you can start saving 15% over the busiest selling period up to the end of the year.

Whilst you’ll receive fees net of VAT we would strongly advise you to register your VAT number with eBay. It’s the best way to demonstrate that you’re a serious business, but more to the point if you have a VAT inspection you want everything to be 100% accurate! Don’t invite a more detailed look at your accounts simply because you didn’t take five minutes to with eBay.

Business sellers who are not VAT registered

Not all businesses need to register for VAT. However eBay have dispensation to charge all business sellers net of VAT from the 1st January 2015. You’ll get a 15% discount on your eBay fees from that date!

How eBay fees will be displayed

eBay business seller fees will be displayed as net prices on the fee pages after 1 January 2015. This means that if currently as a business seller you are paying 10% final value fees as an example, next year the fees will be displayed as 8.7% (8.7% fees plus 15% VAT = 10% fees).

Effectively eBay are knocking off the current 15% VAT rate for all business sellers so you’ll need to get used to the new fee percentages for your categories.

Why are eBay making this change

Over the past year there have been a ton of stories in the press about companies such as Amazon, Starbucks, Google and many other companies not paying enough tax. Here at Tamebay we’ve always said companies should only pay the tax in a country that that country’s law demands.

Now that the law (not just in the UK but across the EU) is changing, eBay are complying as we would expect them too. eBay have maintained the position that they pay all taxes due in every territory that they operate in and the VAT changes announced today for business sellers is eBay simply continuing to comply with tax legislation.

  • Gareth
    2 years ago

    I’m in France (not VAT registered), and am told it will go from 10% to 10.4% on FVF on the basis that VAT is 20% here to Luxembourg’s 15%.
    It’s not going to make a radical change, but it’s still more fees to pay. Between the FVF’s, listing fees, charging on base shipping prices, and Paypal taking their cut, eBay is becoming one of the more expensive platforms out there.

    • 2 years ago

      Unfortunately only business sellers based in the UK, Germany, and Ireland, will be invoiced excluding VAT. In other EU countries business sellers will be invoiced at the prevailing VAT rates unless they are VAT registered AND submit their VAT number to eBay.

    • Gareth
      2 years ago

      Ah, I should have looked more closely, as it seems all UK business sellers will be exempt from VAT on the invoice, which should help most sellers considerably.
      Sadly those of us outside UK/Germany/Ireland are going to suffer. :'(

    • Gareth
      2 years ago

      Looking at it again, it would seem a UK seller would be charged FVF of 8.7% (formerly 10%), and someone selling from say France will be charged 10.4% which takes into account the extra in VAT.

    • James
      2 years ago

      Hi Gareth, it shouldn’t make a difference if you are already VAT registered with eBay.

      If you are VAT registered but haven’t told eBay, give them a call because you are probably owed a few hundred £. :)

  • Steve
    2 years ago

    Have you got a link for the dispensation for business sellers under the VAT threshold? As I am not registered I have to pay VAT on everything else, so why not eBay fees?

    The FAQ provided by eBay is really unclear on people under the threshold other than than the big brother ish “Without your VAT ID on file we may need to contact you for alternative evidence that you are a business.”

    I thought they were trying to get people to register as businesses (so as to give proper protection, and pay taxes) rather than move businesses the other way

    • 2 years ago

      Sure – eBay have published the info here

    • Steve
      2 years ago

      Thanks for the quick reply Chris.

      The way I read it is this, as a non expert ….

      The business price list will be excluding VAT, just as your Viking catalogue can be as they are selling to businesses ( as I understand if you are selling to consumers (private sellers) you need to supply VAT inclusive prices)

      I think they will be adding VAT on to the price (just as Viking does) when you have to pay, if not they will have a VAT liability on that amount. This is a 5% net fee increase to cover the difference between Luxemborg and UK VAT. The eBay FAQ is not very transparent on this.

    • 2 years ago

      For the UK eBay will NOT be adding VAT to fees for business registered sellers regardless of whether the seller is VAT registered or not.

    • Steve
      2 years ago

      Chris I’d love for that to be correct, but someone is liable to pay the VAT on the fees unless HMRC have zero rated them (which I very much doubt). Similarly, I can’t see eBay giving up 20% of their revenue on small sellers to pay UK VAT for us.

      The FAQ which you linked to has given rise to threads on both the powerseller and business seller forums that are split between our views. It does not state that fees are VAT free, just that they will be priced excluding VAT.

      I’ll wait a couple of days for the clarification which will hopefuly come from eBay shortly.

    • Gareth
      2 years ago

      My understanding is the same as yours Steve. I cannot believe HMRC would just drop the tax, so somebody must foot the bill. Of course I stand to be corrected, but I would be greatly surprised.

      If it happens that eBay will invoice without VAT, then add VAT afterwards for all non-VAT registered businesses, then their latest news release is very misleading, and will upset a lot of people.

      This is from the HMRC website regarding the changes:

      Who is making the supply?
      If you supply consumers through an online store or gateway, and the online store or gateway is acting in its own name, then they will normally be considered to be supplying the consumer. This means that the online store or gateway will be responsible for declaring and paying any VAT due. You will be treated as supplying the store and so will be making a business to business (B2B) supply, rather than a B2C supply. If this is the case, these rule changes do not directly affect you.

    • Gareth
      2 years ago

      A couple of things jump out at me (sadly I’m ignorant when it comes to VAT related matters). One is that eBay suggests (from the link) that being VAT registered is a strong indication of a business being a business. So for all those UK businesses below VAT thresholds, how will eBay verify?
      Secondly, if those in the UK/Germany/Ireland will be invoiced at net without VAT, then who swallows the loss?

  • Gary
    2 years ago

    Seems a bit odd that business sellers below the VAT threshold won’t pay VAT on fees. Not that I am complaining if this story is accurate. If it is then I will definitely be putting more stock on ebay from January 2015 as fees of 7.3% with TRS discount are reasonable. Might even upgrade my shop status. ebay will do rather well out of this I would guess so a win win all round for a change!

    And it might encourage more “business privates” to come out and pay income tax which may be the thinking behind the dispensation.

    • Gareth
      2 years ago

      This is what I’m trying to get my head around, as I wonder if it isn’t eBay providing confusing half-stories. They give the impression that business sellers (below VAT thresholds) will not need to pay VAT, which may be true, but who is left with a hole in the pocket? I’m sure the state will still be collecting VAT, so is it subsidised by eBay (wishful thinking!)?
      Maybe the EU has decided that the UK has already made a big enough contribution this year! :-)

  • Gary
    2 years ago

    ebay have said that they may request alternative proof that you are a business if you do not register a VAT number. They do not specify what this proof will be but it could well be an HMRC ref number which could be cross checked with HMRC. I’m guessing this is to prevent private sellers registering as a business to save on fees and at the same time not pay income tax.

    This is the best news ever for genuine business sellers! :-)

    • Tony C
      2 years ago

      Yes, they have said in the FAQ section in that link Chris gave above: ‘Without your VAT ID on file we may need to contact you for alternative evidence that you are a business.’ When I registered for a local Bookers store that only sell to business owners, I simply let them have a look at my tax return header. A genuine, tax-registered business will have a tax reference, which eBay may be able to verify with HMRC – although imo I would not think that HMRC would be able to discuss our registration status with a third party. However, simply sending eBay a scan of the tax form header may be sufficient – guess we’ll have to wait and see!

    • 2 years ago

      Well they wouldn’t want a private seller masquerading as a business just to avoid paying VAT on fees would they…. eBay will have to ensure that only real businesses can access the net-of-VAT fees.

    • Tony C
      2 years ago

      Hmm, good point.

    • Gareth
      2 years ago

      It was my understanding that eBay charges VAT from private and business sellers (not registered for VAT) alike?
      The only exemption would be VAT registered sellers.
      From January 2015, private sellers will pay 20% (for the UK) just like business sellers without a VAT number.
      Can you tell me what I’m missing here, because no-one is addressing the VAT that has to be paid. Is there a suggestion that eBay are absorbing the cost, or HMRC are waiving the VAT?

  • Gareth
    2 years ago

    Quote from the HMRC website on the changes, which is confusing me further:

    Who is making the supply?
    If you supply consumers through an online store or gateway, and the online store or gateway is acting in its own name, then they will normally be considered to be supplying the consumer. This means that the online store or gateway will be responsible for declaring and paying any VAT due. You will be treated as supplying the store and so will be making a business to business (B2B) supply, rather than a B2C supply. If this is the case, these rule changes do not directly affect you.

  • Robert C
    2 years ago

    As I am a business seller under the threshold, this will save me £1,500 a year.

    Or 2 weeks All Inclusive in Barbados :D

    • Gareth
      2 years ago

      I suspect you will see an increase from 15% Luxembourg VAT fees (currently included with the final value fees) to 20% UK VAT fees, which would mean a yearly increase in costs.
      I trust less and less the way eBay spin things. Hopefully I’m wrong, but I think it better to be the pessimist until things are clarified!

    • Robert C
      2 years ago

      Yes, that is a wise approach… I will put my holiday to Barbados on hold for the time being :)

    • 2 years ago

      Probably wiser to stick to Newquay as usual rather than go somewhere exoctic and find it full of americans.

    • Cambridge_Blue
      2 years ago

      If you do come into a windfall head for the French Antilles or the smaller islands which are wonderful, exotic and the few Americans you will meet are usually very pleasant & cultured.
      Don’t bother with Newquay which is not value for money on any basis, it is full of stags & hens parties at the weekend and drunk teenagers partying and puking in the summer – avoid!

    • northumbrian
      2 years ago

      whats up with Americans ?
      why is it you can call the English or a an American ,yet mention any other race in less than glowing terms,and your likely to prosecution

    • 2 years ago

      Newquay was as you described a few years ago. But Newquay has got its act together and there are less and less Hen and Stag Parties. But its not just Newquay that has drunk teenagers in the streets. Even Cambridge has trouble with these.

      But if you don’t like Newquay there is always St Ives or Falmouth or even Looe. Cornwall has many wonderful places to enjoy a great value for money(not something you could say about Cambridge) Holiday.

    • 2 years ago

      Years ago when I came into a windfall I went out and bought a Steam Railway Locomotive. Its still a great love of my life. Your suggestion of a holiday is transcient. Once its over with it is just a pleasant memory. No next time I get a windfall it might not be a Steam Railway Locomotive but it is likely to be something long lasting that I will be proud to have saved for posterity.

    • Robert C
      2 years ago

      We seem to have gone off on a tangent… I feel discussing xenophobic solutions to avoid our stateside chums and the benefits of material possessions over holidays is fairly irrelevent on Tamebay. Netmums maybe.

      Anyways, what I’m pointing out is that it is up to £1,500 (approx) more a year for ebay business sellers who are working under the VAT threshold. Please correct me if I’m wrong as tax/vat is never my strong point.

      For the record, I probably won’t go to Barbados. I’m a redhead and I’ve run out of suncream.

    • 2 years ago

      Might it have been far more Adult, rather than making juvenile comments about Netmums, to have accepted that we are not all alike and it would be terribly over crowded in Barbados if we all decided to take a holiday there.

    • Robert C
      2 years ago

      Please don’t start twisting this by calling me juvenile.

      My comment of Barbados initially was to give a representation of the amount of money. Basically to give people an idea that I saw it as a nice little windfall that I could spend as I wish. Not that I had stated that people can’t do other things with it. I felt you went off on a tangent irrelevant to the post.

      Secondly, I apologise to Netmums profusely.

  • Gary
    2 years ago

    Distinct lack of comment anywhere from “private” sellers.

    More food for thought – it would not go down well with the EU if ebay raised their net fees now that they are net of VAT. Be interesting to see how this all pans out.

    And it may well increase VAT revenue not reduce it as there will be less VAT offsetting to do. And also increased proprietor and partnership income tax and corporate tax revenue as a result of slightly higher margins.

    And remember private sellers will still pay the VAT on fees.

    This solution is good for ebay as it will flush out black market sellers therefore raising standards.

  • 2 years ago

    I am totally confused. The normal procedure for VAT is that everybody pays it on their purchases and then those who are registered for VAT reclaim what they have paid via their periodic VAT Return. Think about a Petrol Station. You drive in and put the fuel in your car. The pump shows the value of your purchase VAT inclusive. If you are VAT Registered, or if you are on expences you ask for a VAT Receipt. This them goes into your accounts(or as part of your expence claim to the company and then into their accounts).

    I just cannot see the necessity for any change to the basic system.

    So a Private Seller or indeed a Business Seller would pay the VAT as per normal and reclaim it if they are registered. If not then tough they have to grin and bear it and stand the cost just as they have to on every other purchase, including petrol.

    • 2 years ago

      I’m afraid Chris what you see is slightly different to the opinion of the VAT man who has seen many many times “the necessity for change to the basic system” and is quite happy to do deals for different groups of people:

      Hey Mr VAT man I’m a small business, can you make it easy for me to account for VAT. Sure sayeth the VAT man, we’ll do a scheme called Flat Rate VAT.

      Hey Mr VAT man, I have cash flow issues, can you help me? Sure sayeth the VAT man, we’ll do a scheme called cash accounting so you only pay VAT when your customer pays you.

      Hey Mr VAT man, I do loads of second hand goods and art where I can’t offset VAT as I’m buying from non-registered clients, can you help me? Sure sayeth the VAT man, you can pay VAT on your profits only and we’ll call it the VAT margin scheme.

      Hey Mr VAT man, I’m a retailer with hundreds of sales and it’s a real bind adding up all the receipts, can you help me? Sure sayeth the VAT man, we’ll do a VAT retail scheme for you.

      So loads of special cases negotiated by groups of interested parties then! No surprise that something along the lines of the following conversation (and I have no confirmation, it’s total speculation) might have taken place:

      Hey Mr VAT man, here at eBay we have some 200,000 businesses we need to collect VAT from for you, can you make it easier for us to comply? Sure sayeth the VAT man, charge all your business sellers net of VAT and all your consumer sellers the gross price if that makes your accounting simpler and we’ll sign off on that.

  • Leigh
    2 years ago

    I thought from the strangely worded ebay email that we would see fees net of VAT on a rolling basis day to day then the VAT would be added when the months invoice is closed.
    I groaned thinking about calculating the VAT to be added on each fee as I keep a day to day spreadsheet on each item I sell.
    I’m probably wrong but hey ho.

  • Gary
    2 years ago

    The new legislation is about VAT collected staying in the country where the sale takes place.

    Consumers (private sellers) will be charged VAT at the local rate and the VAT collected will be passed to the local treasury.

    For business to business sales (that is ebay fees to business sellers) VAT if charged would still go to the treasury in whose country ebay is domiciled. In ebays case Luxembourg.

    By not charging VAT on fees to business sellers then the VAT on fees cannot be offset so more VAT collected by business sellers goes to the local treasury in which the sale takes place. The largest ebay markets UK and Germany probably insisted on this as their VAT take would rise. Revenue from VAT registered business sellers on ebay probably far outweighs revenue from small business sellers below the VAT threshold and so overall there is a gain for the UK treasury even though VAT on fees won’t be charged on non VAT registered business sellers.

    If ebay charged VAT on fees for non VAT registered businesses then it would go to Luxembourg anyway so what is there to be gained for the UK treasury? Better to say don’t charge VAT on fees to all business sellers and we keep more VAT within the UK and possibly increase the level of income and corporate taxes paid.

  • Bidness
    2 years ago

    Surely this is a fee increase?

    Previously:

    10% fees, minus 15% VAT = 8.7%.

    VAT rate now charged at 20%, so it should be this:

    10% fees minus 20% VAT = 8.33%.

    But they are still charging 8.7%, so the fees are now 10.4% (8.7 * 1.2).

    VAT registered sellers will still pay 8.7%, non VAT registered sellers will pay 10.4%.

    I don’t believe non-VAT registered sellers will be charged 0% VAT. If someone can link to article which says this, please do.

    • 2 years ago

      Previously fees were 10% which included Luxembourg VAT. Deduct the 15% Luxembourg VAT and you get 8.7% fees. That’s what sellers pay today.

      Now if you like we could all lobby eBay and beg them to add 20% to the 8.7% fees making 10.44% fees which is what sellers will be paying in France for example.

      Alternatively you can happily pay the 8.7% fees (actually whether you’re happy or not that’s what businesses will pay on eBay if they choose to use the marketplace).

      Strangely many people have been lobbying for big corporates to pay more tax in the countries they operate in, but as soon as it means a bigger bill for them personally they don’t like the very thing they asked for!!!

      As for “I don’t believe non-VAT registered sellers will be charged 0% VAT”, did you read “All business sellers based in the UK will be invoiced excluding VAT (net pricing) from 1 January” in the article above (with link to source)? If you choose to still not to believe it that is of course your right, but in that case there really is nothing else I can write to convince you.

    • Bidness
      2 years ago

      So a non-business non-VAT registered person still pays 15%.

      I may choose to believe it soon.

    • Bidness
      2 years ago

      In the article you say this:

      “eBay will still keep the same fee schedule but, instead of including VAT at 15%, fees will include VAT at 20% from 1st January 2015.”

      Doesn’t that mean they are paying 8.33% + 20% VAT? So they are technically paying less net fees than someone who registers as a business and/or for VAT?

    • 2 years ago

      Yes private sellers will technically get a fee reduction although the gross amount will be the same. That’s nothing to do with business seller rates, eBay have split private and business seller rates for years and the two have nothing to do with each other.

  • hongkong seller
    2 years ago

    Will this affect me.

    I am hong kong seller, but item location ‘london’.

    • 2 years ago

      I’m guessing eBay will view you based on where your eBay account is located which if it’s Hong Kong means you’ll pay whatever taxes are due in your territory.

      However you probably have UK taxes to pay too…. You need to have your own conversation with HMRC about paying UK taxes due on your London based operations. We’re not equipped to answer your question as we are neither HMRC nor are we accountants.

  • John S
    2 years ago

    So if I understand this correctly:
    HMRC clearly state that non VAT registered businesses must be treated as consumers and be invoiced including VAT.
    Ebay say that non VAT registered businesses will be invoiced excluding VAT.
    As the non VAT business has no mechanism to pay the VAT, it doesnt get paid?
    The exemption for suppliers regarding VAT ID’s is if a business doesnt supply its VAT ID for whatever reason, alternative evidence can be accepted.
    If I don’t have to pay VAT on ebay fees during 2015 (as a non VAT registered Ltd company) I’ll eat my TV.

    • 2 years ago

      Its not only the non VAT registered Ltd Companies. What about the mass of Sole Traders, Partnerships etc Non Ltd Company, Non Vat Registered and I would bet that on ebay there are thousands of sellers both business and private who fall into those categories. How do they pay their VAT. In fact if they do not pay the VAT when there is no mechanism to pay it are they committing any form of crime? My bets is that without some form of mechanism to allow them to pay the VAT there is no Crime. Although as with all of these things there will need to be a Trial and let the Courts decide if there is a crime of any sorts.

    • 2 years ago

      Why are you talking about a crime??

      Firstly it’s not something for sellers to worry themselves about. It’s eBay as the supplier that are liable for charging and collecting any VAT due on eBay fees and sending it to HMRC. I’ve never (and suspect that you haven’t either) heard of a customer being liable for making sure VAT is collected and paid over!

      Non VAT registered sellers don’t have to bother themselves with VAT returns anyway. VAT registered sellers simply won’t receive a VAT invoice so can’t reclaim any VAT either, so nothing for them to worry about.

      The only people that have to worry about VAT on eBay fees is eBay themselves, and they’ve obviously done their home work, sat down with HMRC and sorted their affairs out.

      I’m sorry but your scaremongering really isn’t very helpful to anyone.

  • elvis
    2 years ago

    I have a simple question and am looking for a simple answer.

    From 2015 will selling on ebay be cheaper for non-vat registered businesses?

    • 2 years ago

      Simple answer…. “Yes. Fees will be 8.7% instead of 10%”.

    • Gareth
      2 years ago

      Slightly more complicated answer: possibly not ,as eBay are not obliged to accept anything other than a VAT number, and if they choose to only use that, non-VAT registered business sellers will not be exempt.

  • Wise Owl
    2 years ago

    So who pays the VAT?

    • derek duval
      2 years ago

      So like a bad thought out plan to me.

      HMRC. Hello is that Ebay, we worked out you owe us 10 Billion pounds on the VAT you collected from UK sellers in 2015

      EBAY. No mr HMRC you have to collect it yourself, we agreed that.

      HMRC. Right boys get onto the BBC and tell them all Ebay Sellers will be expecting a letter soon for unpaid taxes

      Sounds like an epsode from Laural and Hardy to me

  • Gary
    2 years ago

    The UK treasury does absolutely not benefit on ebay to business fees VAT. they are perfectly happy with the new legislation that they themselves negotiated. they receive more VAT from ebay not less. 20% on all ebay to consumer sales is better than nothing. it all went to Luxembourg previously. as would VAT on business to business sales if it was charged. as it is not charged and cannot be offset then all business to consumer VAT goes to the treasury also. The UK treasury is the big winner here.

    • derek duval
      2 years ago

      The simple question is how does HMRC collect VAT from non registered VAT sellers.

      I simply dont believe they are going to let the fees go unpaid

  • Gary
    2 years ago

    ebay are responsible for collecting VAT not non VAT registered ebay business sellers. HMRC will not come knocking on your door so do not worry. and in any case.the VAT would not go to HMRC so why would they be interested?

  • Gary
    2 years ago

    The other bit of good news about this for the UK is that there is now absolutely no point in ebay and other electronic service companies moving offices and domiciling to that country in the EU that has the lowest VAT rates and chasing these lower VAT rates. There is no longer a benefit in doing this. So ebay and other electronic service companies will probably move back to the UK from Luxembourg returning jobs to the UK with these moves.

  • Gary
    2 years ago

    And if “business private” sellers refuse to register as a business then they pay the 20% VAT on the ebay fees to the UK treasury, not the Luxembourg treasury as before, so at least some tax is paid to HMRC. Before nothing was paid. Another win for the UK HMRC!

    • derek duval
      2 years ago

      To CLARIFY, lets create an example because this dosen’t sound right to me

      UK Registered Business Not Vat Registered. Work as a sole Trader

      Example of Last Month Fees

      £774 (Inclusive of 15% VAT To Luxemburg)

      New Fees = £657.90 (No vat included)

      Fee due for payment to Ebay in Jan 2015 in our example = £657.90

  • Gary
    2 years ago

    That clarification is correct. The difference is £116.10 so £32.50 extra in income tax and NI is paid to HMRC which is better than £116.10 going to Luxembourg. It is an absolute fact that in future no business to business ebay fee VAT will be going to Luxemburg as there won’t be any charged to any business seller. All business to consumer VAT will go to the country in which the sale takes place.

    The real question is are sole traders to be reclassified as private sellers on ebay? That would cause ebay and consumer law a lot of headaches.

    • derek duval
      2 years ago

      Thx Garry.

      Music to my ears . Would rather pay HMRC any day than some other 2 bit country playing the VAT and corporation game

  • Gary
    2 years ago

    “The real question is are sole traders to be reclassified as private sellers on ebay?”

    I have invoices for stock purchases. This is one item of proof that ebay could require if a VAT registration number is not available. I have a Royal Mail PPI account which has a minimum requirement that 1000 packages a year are shipped. Again Royal Mail invoices are proof that should satisfy ebay. Copies of invoices can be emailed to ebay so it is relatively straightforward for ebay to obtain evidence that a seller who is not VAT registered is running a business as classified by HMRC.

    • northumbrian
      2 years ago

      why the palaver and paper trail
      turnover thru your ebay account is a surefire way to tell if your a business or not ,unless of course you sell” BOOKS”

  • Jon
    2 years ago

    You should probably look at this:
    https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services/vat-notice-741a-place-of-supply-of-services

    This hasn’t been updated for 2015, yet, but the rules that are changing are business to consumer not business to business. So the business to business parts apply now and after 1 Jan 2015.
    Basically if a business is supplied e-services then the business should not be charged VAT by the supplier, but the business becomes liable to account for the VAT that the seller didn’t charge, under the ‘reverse charge’ (section 18).

    If a business in the UK is below the turnover limit for VAT then the reverse charge services are seen to be part of the business’ taxable turnover for VAT. So the reverse charge is not collected if the business is still below the turnover limit (in the same way that VAT is not charged or collected on other sales by the business) but the amounts charged in fees by e-Bay could, when added to the business’ normal turnover, take it above the limit and mean that it has to register for VAT.

    So all businesses are, in effect, treated the same way for VAT. A registered business has to charge itself the VAT that e-bay doesn’t charge it and an unregistered business has to do the same if the charges (+ its normal turnover) mean that it goes over the VAT registration limit.

  • Gary
    2 years ago

    If the business to business parts apply now where is my ebay VAT refund for the last few years amounting to ££££’s?

  • david
    2 years ago

    Here is my take on this…

    I dont see the problem, nothing has changed apart from location.
    Lets say £15 + lux %15 VAT £2.25 = 17.25 is what you pay…

    Now… because ebay sell an advert placement to a UK seller they charge, £15 + %20 VAT £3 = £18.00 is what you pay..

    Now, if your VAT registered you can claim back £3 but ebay still get what they got before, they just invoice you with and without vat so you can see it.
    If your NOT vat registered your ebay fees really went up by 0.75p

    so,…

    Winner, HMRC
    No change – VAT registered business
    No change – eBay
    Loser – non VAT registered uk business.

    Thats how I see it.

    • 2 years ago

      The only difference is:

      £15 plus no VAT is what eBay will invoice a business registered seller (VAT registered or not VAT registered)

      So currently you pay £15 plus 15% Luxembourg tax, in the future a business registered seller (VAT registered or not VAT registered) will pay £15. No change for a VAT registered seller, but a discount for a non-Vat registered seller.

      PS If you are VAT registered you can’t claim the VAT back on eBay fees now OR in the future! If you’re trying to claim the VAT back you’re in for a nasty surprise on your next VAT audit. The correct thing to do is register your VAT number with eBay and pay net fees (Now and next year!)

  • david
    2 years ago

    So, giving that info would ebay now start reporting business sellers in the UK to HMRC whos turnover exceed the VAT amount for the year?

  • Chris
    2 years ago

    OFFTOPIC:
    But eBay is down again, Monday morning = great.

  • Gary
    2 years ago

    Ebay down Monday morning can’t check sales my ebay etc. Why can’t ebay stop faffing around with their systems in the run up to Xmas?

    • JD
      2 years ago

      Yup all gone ‘pete tong’ here too.

  • PeteStan
    2 years ago

    Can get on ebay but I have nothing in “my Ebay”. I know there were a couple of auctions ending this morning I was planning on bidding on, oh well I feel sorry for anyone who has anything ending today.

  • Kevin A
    2 years ago

    At JD,

    I used to DJ with Pete Tong :-)

    Nothing working for me either

    No call back facility on eBay and if you click on the chat help the wait time is 53 minutes.

    Good old eBay, breakdown on a Monday morning :-(

  • David
    2 years ago

    So, giving that info would ebay now start reporting business sellers in the UK to HMRC whos turnover exceed the VAT amount for the year

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