UK VAT new policy from 2021

[likefrasers]

I sell in UK market and have a flat rate 6.5%, but start from 1st Jan ebay automatically collect 20% VAT remit to HMRC now.

Called HMRC yesterday they told me yes from now on all platform collect VAT and remit to HMRC automatically with a general rate 20%.

I asked them how can you return the extra VAT to buyers, they said it can not.

So they just steal money indirectly from their people through ebay and Amazon...

What a horrible horrible government!!!

[JamesNorth101]

The idea behind the policy I expect is for people to buy items in the UK self and not import

There were literally tens of thousands of Chinese sellers never paying VAT and this is the only way around it really

[quest]

Originally Posted by likefrasers

I sell in UK market and have a flat rate 6.5%, but start from 1st Jan ebay automatically collect 20% VAT remit to HMRC now.

Called HMRC yesterday they told me yes from now on all platform collect VAT and remit to HMRC automatically with a general rate 20%.

I asked them how can you return the extra VAT to buyers, they said it can not.

So they just steal money indirectly from their people through ebay and Amazon...

What a horrible horrible government!!!

That's the outcome of brexs'iht

Is your VAT number added to your ebay account? If so, try to change VAT rate in your ebay listings to 6.5%

[zamzam]

Originally Posted by quest

That's the outcome of brexs'iht

Is your VAT number added to your ebay account? If so, try to change VAT rate in your ebay listings to 6.5%

I dont think its related to brexit

[quest]

Originally Posted by zamzam

I dont think its related to brexit

Its directly related. As many other tax and import changes from Jan-01

[JamesNorth101]

Originally Posted by quest

Its directly related. As many other tax and import changes from Jan-01

It effects imports from the EU, imports from the US and every other country. Its happened at the same time as brexit but not because of brexit. Exact same new law may have happened if if we stayed in the EU it would just have excluded imports from the EU being effected.

My understanding at least.

[quest]

Originally Posted by JamesNorth101

It effects imports from the EU, imports from the US and every other country. Its happened at the same time as brexit but not because of brexit. Exact same new law may have happened if if we stayed in the EU it would just have excluded imports from the EU being effected.

My understanding at least.

In the EU import regulations for all EU members are the same. Anyway, from Jul-01 there will be some changes in the EU also.

[likefrasers]

Originally Posted by quest

That's the outcome of brexs'iht

Is your VAT number added to your ebay account? If so, try to change VAT rate in your ebay listings to 6.5%

there's simply no fields you can change VAT rate on ebay listing. I called ebay as well, they said it's not able to change the rate, it's designed like that so all UK buyers have to pay 20% up more...

Feel so sorry for UK buyers.

[likefrasers]

Originally Posted by quest

In the EU import regulations for all EU members are the same. Anyway, from Jul-01 there will be some changes in the EU also.

I heard EU will start the same from 1st March.

[likefrasers]

[QUOTE=JamesNorth101;1138579]The idea behind the policy I expect is for people to buy items in the UK self and not import

Do you mean if you are UK registered seller, buyer don't need to pay this 20% VAT?

[quest]

Originally Posted by likefrasers

there's simply no fields you can change VAT rate on ebay listing. I called ebay as well, they said it's not able to change the rate, it's designed like that so all UK buyers have to pay 20% up more...

Feel so sorry for UK buyers.

I guess your listing is in .com site, whats why you cant add VAT rate.
In co.uk and other EU sites you can add VAT rate to each listing.

Anyway, if ebay takes 20% and you are on flat rate scheme, I think you should be able to get back that difference from HMRC.

[quest]

[quote=likefrasers;1138761]

Originally Posted by JamesNorth101

The idea behind the policy I expect is for people to buy items in the UK self and not import

Do you mean if you are UK registered seller, buyer don't need to pay this 20% VAT?

If UK based seller ships from outside UK, ebay will charge VAT anyway.
No VAT charges will be for UK seller who ships from UK.

[Hank]

Originally Posted by quest

Anyway, if ebay takes 20% and you are on flat rate scheme, I think you should be able to get back that difference from HMRC.

You can't claim back the difference.

Given OP is not based in the UK nor shipping from the UK, I can't see the benefit of the flat rate scheme TBH. Even the HMRC website advises against it unless there are unusual circumstances.

[likefrasers]

No, my listing is listed on ebay.co.uk

No, HMRC said it's not able to get back the difference.

Originally Posted by quest

I guess your listing is in .com site, whats why you cant add VAT rate.
In co.uk and other EU sites you can add VAT rate to each listing.

Anyway, if ebay takes 20% and you are on flat rate scheme, I think you should be able to get back that difference from HMRC.

[likefrasers]

To make it clear,

I am US seller, but have UK flat rate scheme and selling in UK market (ebay.co.uk). Item located in UK as well (I rent UK warehouse).

But ebay.co.uk not allow me to fill in my rate 6.5%, they charge still 20% to all UK buyers.

It's designed like that, and HMRC won't return this difference to me or to my buyers.

[james_112233]

To be honest I do buy a lot of chinese goods for re-sale. If I have to pay 20% on those purchases now ... i'm dreading the consequences.

[Bigblackdog]

Originally Posted by likefrasers

To make it clear,

I am US seller, but have UK flat rate scheme and selling in UK market (ebay.co.uk). Item located in UK as well (I rent UK warehouse).

But ebay.co.uk not allow me to fill in my rate 6.5%, they charge still 20% to all UK buyers.

It's designed like that, and HMRC won't return this difference to me or to my buyers.

You might want to team up with a UK seller to operate your sales side. You could still fulfill your orders from your UK warehouse but without your customer being charged VAT - at least until they reach the VAT threshold

[Bigblackdog]

Originally Posted by james_112233

To be honest I do buy a lot of chinese goods for re-sale. If I have to pay 20% on those purchases now ... i'm dreading the consequences.

ditto that

[likefrasers]

Originally Posted by james_112233

To be honest I do buy a lot of chinese goods for re-sale. If I have to pay 20% on those purchases now ... i'm dreading the consequences.

All online platforms are charging UK purchasing 20% VAT, aliexpress, etsy or amazon, it doesn't matter if item locates in China or US, as long as it's not in UK, you have to pay 20% on top of that.

It's like UK government forbidden UK buyers to shop overseas, even if merchants are in UK but if it's belongs to overseas seller, UK buyers still have to pay 20% VAT.

[samspalace]

Originally Posted by james_112233

To be honest I do buy a lot of chinese goods for re-sale. If I have to pay 20% on those purchases now ... i'm dreading the consequences.

I buy a lot of Chinese goods as well. Are you registered for VAT on eBay? Is that why you have to pay 20% on your purchases? At the moment I’m not even paying custom fees atm :/

[likefrasers]

Originally Posted by samspalace

I buy a lot of Chinese goods as well. Are you registered for VAT on eBay? Is that why you have to pay 20% on your purchases? At the moment I’m not even paying custom fees atm :/

You are not able to list anything in UK ebay if you are not registered VAT.

[quest]

Originally Posted by likefrasers

You are not able to list anything in UK ebay if you are not registered VAT.

No mate, you can list without having VAT. But if your business is outside UK, ebay will add/charge VAT.