Vat block

[Syd044]

Hi guys,

I've been selling now on eBay for about 4 years and have gone over the VAT threshold by 10k only just noticing. Just looking for a bit of information now on the best way to proceed. Would I make the situation worse by keeping my account active altogether? If I just stop selling but use for purchases would this still flag my account and eventually get suspended entirely? All this completely goes over my head. I've been a collector/hoarder of vintage toys for years, many individual pieces being high end items quickly getting me over that threshold and continuing to buy and downsize as desired. I'm still able to sell at the moment with whatever I have listed, but obviously blocked from listing anything else, no doubt continuing to sell what's still active without providing a VAT number will just cause more issues? Any help would be appreciated.

eBay block notification reads something like "you are unable to list new items pending evidence of full compliance with your UK Vat obligations"

Kind regards

[james_112233]

Originally Posted by Syd044

Hi guys,

I've been selling now on eBay for about 4 years and have gone over the VAT threshold by 10k only just noticing. Just looking for a bit of information now on the best way to proceed. Would I make the situation worse by keeping my account active altogether? If I just stop selling but use for purchases would this still flag my account and eventually get suspended entirely? All this completely goes over my head. I've been a collector/hoarder of vintage toys for years, many individual pieces being high end items quickly getting me over that threshold and continuing to buy and downsize as desired. I'm still able to sell at the moment with whatever I have listed, but obviously blocked from listing anything else, no doubt continuing to sell what's still active without providing a VAT number will just cause more issues? Any help would be appreciated.

eBay block notification reads something like "you are unable to list new items pending evidence of full compliance with your UK Vat obligations"

Kind regards

Yeah I had this happen 4 years ago when I got close to the threshold. Got a phone call from ebay asking whether I was going to become VAT registered as I was like 7k away from it. Ebay would need me to put in my VAT number to continue selling. I made the decision I would lose my competitive edge if I became VAT registered so just closed that ebay shop for a few months and focused on my other unrelated freelance work that I do while the rolling turnover on my online ebay business went down.

It helps if you have multiple streams of income so you can occupy your free time elsewhere, otherwise you might want to become VAT registered and put in 100% focus to make unlimited money. You know your business better than any one else does.

Technically speaking you've gone over by 10k and you should have registered for VAT way before. But may be they will let you off if it's one off occurrence and you've stopped selling. Go and speak to an accountant. They'll advise you properly.

[Eagle10]

It is quite easy to become VAT registered and if you choose the flat rate scheme it only costs you 7% or less per sale. You can register as a sole trader and keep your normal bank account etc. If you are a serious seller then it really makes a lot of sense not to try and avoid the UK VAT.