Forum

Re: EBay Asks For VAT registration
 

I suggest anyone else considering this read the information here
https://sellercentre.ebay.co.uk/business/about-vat
UK and German sellers do not get a vat reduction on their fees and have to reclaim it locally on your standard vat return. This means if ebay gives you a vat receipt or not, you are not doing anything illegal if you have legally deregistered and are now incapable of claiming the vat back from their fees. Just make sure you aren't sending a vat receipt to the customer.

Obviously if you later go back over the threshold and have to reregister for vat, not doing so is illegal, just like it would have been in the first place but ebay are now forcing the matter after hmrc pressure.

This advice should help anyone who temporarily went over without realising to then deregister. My advice is to not rock the boat with ebay by contacting customer services to tell them you have deregistered. It in no way affects your legal responsibilities so long as you adhere to the above.

The grey area is a vat number will be showed on your seller info page. But so what, just make sure your linnworks template or whatever isn't showing this or vat on the invoice. If a buyer requests a vat receipt just tell them there is no vat being charged. Obviously if you mostly sell to business customers you would usually be better off staying registerd anyway.

If any of this is too 'illegal' for your liking, you probably shouldn't be stealthing or acting in a way that got an account banned in the first place.