Would really appreciate some help please

[samspalace]

Hi everyone,

Would really appreciate some help on this.

EBAY FEE: £1.30
Fee percentage: 6.22% + £0.30 + 20% VAT

TOTAL PROFIT: £3.46
Profit margin: 27.57% of sold price

You can claim the VAT of the item cost(+£0.69), shipping cost (+£0.5) & eBay fee (+£0.22)
The government takes the VAT of the sold price(-£2.09)

Where it says total profit £3.46 and then at the bottom The government takes the VAT of the sold price(-£2.09) is that -£2.09 coming out of the £3.46 profit I know it comes off sold price but is my profit £3.46 like the calculator says it is?

Another question says on calculator I can claim +69p item cost +50p shipping cost and +22p eBay fee is this for the total sold price of the item on eBay? Or is this for stock brought from supplier?

Would appreciate any help and replies on this.

[Bigblackdog]

Originally Posted by samspalace

Hi everyone,

Would really appreciate some help on this.

EBAY FEE: £1.30
Fee percentage: 6.22% + £0.30 + 20% VAT

TOTAL PROFIT: £3.46
Profit margin: 27.57% of sold price

You can claim the VAT of the item cost(+£0.69), shipping cost (+£0.5) & eBay fee (+£0.22)
The government takes the VAT of the sold price(-£2.09)

Where it says total profit £3.46 and then at the bottom The government takes the VAT of the sold price(-£2.09) is that -£2.09 coming out of the £3.46 profit I know it comes off sold price but is my profit £3.46 like the calculator says it is?

Another question says on calculator I can claim +69p item cost +50p shipping cost and +22p eBay fee is this for the total sold price of the item on eBay? Or is this for stock brought from supplier?

Would appreciate any help and replies on this.

You are making something simple very complicated

If you sell a widget for £9.60 (£8 plus 20% VAT) you owe the government £1.60

However the VAT you paid when you bought your widget, the VAT that Ebay charges you all come off of your VAT bill

The £8 that you receive from the sale less Ebays net fees and shipping costs is your gross profit

Now take off your widget cost (without VAT) and you have your net profit

Simples

[samspalace]

Originally Posted by Bigblackdog

You are making something simple very complicated

If you sell a widget for £9.60 (£8 plus 20% VAT) you owe the government £1.60

However the VAT you paid when you bought your widget, the VAT that Ebay charges you all come off of your VAT bill

The £8 that you receive from the sale less Ebays net fees and shipping costs is your gross profit

Now take off your widget cost (without VAT) and you have your net profit

Simples

Thanks for your reply I’m still a little confused and know I’ve complicated it to some what is the net profit the eBay calculator shows you the real net profit so £3 something real net profit or is that £2.09 vat government coming off that net profit? Sorry for this silly question but for me it’s not made very clear

[samspalace]

Example would be

Product 1 sold for £12.55
Item cost £4.11 including vat paid on order from importing from China to U.K.
postage and packaging cost to post £3
Vat registered yes
Vat 20%
EBay fee £1.40
Total profit £3.37

For me confusing part

You can claim the VAT of the item cost(+£0.69), shipping cost (+£0.5) & eBay fee (+£0.23)
The government takes the VAT of the sold price(-£2.09)

Is my net profit £3.37 or £3.37 - £2.09 = £1.28

[samspalace]

Originally Posted by Bigblackdog

You are making something simple very complicated

If you sell a widget for £9.60 (£8 plus 20% VAT) you owe the government £1.60

However the VAT you paid when you bought your widget, the VAT that Ebay charges you all come off of your VAT bill

The £8 that you receive from the sale less Ebays net fees and shipping costs is your gross profit

Now take off your widget cost (without VAT) and you have your net profit

Simples

I think I’ve finally worked it out now took a while but think I’m their now

Product 1 is £12.55 (£10.46 plus 20% vat owe £2.09)

£10.46 - (eBay fees) £1.40 and - (shipping) cost £3.00 gross profit £6.06

£6.06 - (product cost) £3.40 NOT including VAT

£6.06 - £3.40 = £2.66 net profit it’s not same as calculator £3.37

Can I claim this back You can claim the VAT of the item cost(+£0.69), shipping cost (+£0.5) & eBay fee (+£0.23) 0.69+0.50+0.23=£1.42 can I claim that £1.42 back?

If so £2.09 vat charged from sale - £1.42 = £0.67 claim back
£2.66 net profit + £0.67 claim back total net profit now £3.37 as eBay calculator says.

I know I can claim vat back on imported goods as long as I’m vat registered which I am now.

[Hank]

Do you pay VAT on all your importations?

[Bigblackdog]

Originally Posted by Hank

Do you pay VAT on all your importations?

AliExpress charge VAT so I assume AliBaba do too

[Hank]

Originally Posted by Bigblackdog

AliExpress charge VAT so I assume AliBaba do too

only on orders under £135 in value.

[samspalace]

Originally Posted by Hank

Do you pay VAT on all your importations?

From my understanding could be wrong I need to pay 20% vat on my order shipped from alibaba. I don’t need to pay any duty taxes as when I type the HS code into the trade tariff website it says 0% duty taxes 20% vat tax.

I believe I need to give my supplier my EORI number and HS code for product imported and I will be charged vat when the stock arrives into the U.K. I don’t know as new to it all but think this is how it all works.

Would appreciate advice if this is correct or not?

[Bigblackdog]

Originally Posted by Hank

only on orders under £135 in value.

Correct

[Hank]

As I said on another thread, why not pay a professional for some advice and get it right. How many hours do you plan on playing this guessing game?

If you mess up with VAT you will regret it - you have been warned.

[samspalace]

Originally Posted by Hank

As I said on another thread, why not pay a professional for some advice and get it right. How many hours do you plan on playing this guessing game?

If you mess up with VAT you will regret it - you have been warned.

I want to learn it myself and if it takes hours to learn it then so be it I will keep educating myself on it. When my business expands and grows probably would be best to get an accountant as I probably wouldn’t have time to do it but being a small business I have time to learn it.

[murdered_by_ebay]

Originally Posted by samspalace

I want to learn it myself and if it takes hours to learn it then so be it I will keep educating myself on it. When my business expands and grows probably would be best to get an accountant as I probably wouldn’t have time to do it but being a small business I have time to learn it.

if you want to learn this just for internal calculations it is easy to do , people usually make such calculations without considering VAT at all but use net prices in order to calculate profits/losses

[winge00]

Sorry for jumping in

When I buy stock from uk wholesalers, they charge me vat,

But when I sell on ebay from business acc, I don’t charge vat, I always think because I m not vat registered so can’t charge vat, plus if charge vat, overall price on listing will go up,

Do u guys business sellers on eb charge vat?

Plz guide

[samspalace]

Originally Posted by winge00

Sorry for jumping in

When I buy stock from uk wholesalers, they charge me vat,

But when I sell on ebay from business acc, I don’t charge vat, I always think because I m not vat registered so can’t charge vat, plus if charge vat, overall price on listing will go up,

Do u guys business sellers on eb charge vat?

Plz guide

From my understanding if your VAT registered you claim back VAT brought on goods/services so if you brought stock for £1000 and vat was charged 20% so £200 you can add that in input on VAT return. If your paying for goods outside U.K. you can claim 20% on VAT import charges by declaring it in input on VAT return.

I’m not to sure if I can claim VAT on goods as well I buy from China and can claim import taxes VAT 20% but not sure if I can also claim 20% VAT on the total cost of goods. Example would be total stock cost £1000 20% import taxes £200 for my input VAT return but not sure if I can claim back another 20% on the goods probably not as that would be 40%.

Again from my understanding you can also claim back VAT paid towards your eBay fees by declaring it in input VAT return I’m not sure if you can claim back VAT on sponsored adds/listings as we are charged 20% VAT for every sold item on sponsored listings if used.

If your VAT registered and you sell an item for £12 20% will come off your listing I believe I’ve not tried it yet waiting to receive my stock.

More experienced knowledgable sellers would be able to give their advice and opinions on this.

[samspalace]

Just found this out I know it relates to Amazon but Amazon do sponsored listings like eBay do.

They do charge Vat on their advertising charges as this is from their UK arm - but it can be claimed back on the Vat return.5 Nov 2019

Can you claim VAT back on Amazon advertising?
The simple answer is you can claim back anything you have a VAT invoice from Amazon for. Only if you are VAT registered and on the standard scheme, not flat rate.

My eBay invoices say 20% VAT eBay fees paid and 20% VAT sponsored listings paid so I believe I can claim back eBay fees and sponsored listing fees could be wrong but Amazon sellers are claiming it back.

[murdered_by_ebay]

ebay should not charge you VAT if you provide them your VAT number

[rsot]

Originally Posted by samspalace

I want to learn it myself and if it takes hours to learn it then so be it I will keep educating myself on it. When my business expands and grows probably would be best to get an accountant as I probably wouldn’t have time to do it but being a small business I have time to learn it.

All the best

[Hank]

Originally Posted by samspalace

I want to learn it myself and if it takes hours to learn it then so be it I will keep educating myself on it. When my business expands and grows probably would be best to get an accountant as I probably wouldn’t have time to do it but being a small business I have time to learn it.

Oxymoron aside, who is teaching you? All you're doing is interpreting the (complicated) written rules as you see fit, how you want to see things. You have absolutely no idea if you're right or wrong as this thread demonstrates.

I know I might come across as a browbeater but you do not want your activity investigated. And all over a few hundred quid........

Anyway, If I was ever to have a go myself then obviously I'd need to invest in some decent software which can not only manage my accounts and income/corporation/vat calculations but, in the case of VAT, electronically submit my figures and pay my dues quarterly. Were you planning on investing in a software package?

If so, here's a link to HMRC approved suppliers:

https://www.gov.uk/government/public...ware-suppliers

[samspalace]

Originally Posted by Hank

Oxymoron aside, who is teaching you? All you're doing is interpreting the (complicated) written rules as you see fit, how you want to see things. You have absolutely no idea if you're right or wrong as this thread demonstrates.

I know I might come across as a browbeater but you do not want your activity investigated. And all over a few hundred quid........

Anyway, If I was ever to have a go myself then obviously I'd need to invest in some decent software which can not only manage my accounts and income/corporation/vat calculations but, in the case of VAT, electronically submit my figures and pay my dues quarterly. Were you planning on investing in a software package?

If so, here's a link to HMRC approved suppliers:

https://www.gov.uk/government/public...ware-suppliers

I’m watching lots of YouTube videos and reading lots of articles and the same thing is said in the videos and reading articles. Some of it seems obvious and yet others like eBay sponsored listings fees I’m not sure if I can claim back it is guess work if I’m honest I know you can claim eBay fees as eBay says you can but as for sponsored listings vat fees I’m not too sure. Amazon do so I assumed you can but just because Amazon do doesn’t necessarily mean eBay do.

I am very small business and just about to order either 500 or 1000 amount of pcs for one product so calculating basics on one product same price seems pretty straight forward. I have looked into quick books and Xero for the future and I was thinking last night once I sell lots of other products at different prices etc I will most likely need software or just try and record each sale in an excel sheet it’s very early days but I think for now I should be able to work it out for just one product.

[Eagle10]

Don’t think you need to spend out on Xero yet as Excel will pull in your gross and net sales from monthly eBay report easily (really, really simple). A simple Excel add in such as Vital Tax will enable you to upload your VAT three monthly return as bridging between Excel and the nine VAT boxes - you will have to use as from next April either bridging software or accountancy software as Making Tax Digital becomes compulsory then so might as well start now. Unless you have a very complex business it is very simple.

[samspalace]

Originally Posted by Eagle10

Don’t think you need to spend out on Xero yet as Excel will pull in your gross and net sales from monthly eBay report easily (really, really simple). A simple Excel add in such as Vital Tax will enable you to upload your VAT three monthly return as bridging between Excel and the nine VAT boxes - you will have to use as from next April either bridging software or accountancy software as Making Tax Digital becomes compulsory then so might as well start now. Unless you have a very complex business it is very simple.

Thank you so much for your advice. I received my refund from Alibaba today and have just brought 500pcs of a product which I should have no issues with selling or risk losing my eBay account. Very excited to start this new eBay business.

I guess I will prepare excel now for when the order comes. Do you recommend any templates to buy or is it simple enough to set up.