Important news about VAT registration

[samspalace]

Hi everyone,

I see loads of posts about VAT registration and why not as us sellers need to know how it all works but I found out some news today speaking to an eBay rep.

Now I’ve been told VAT works on a yearly basis from the first date you sold an item. So I sold my first item June 30th 2020 and I was told if I don’t reach £85,000 by this date I won’t need to register.

So I asked a question I sad “If I made £140,000 in 2 years so £70,000 year 1 and £70,000 year 2 total sales on eBay £140,000 will I need to register for VAT”?

Answer replied no unless you have gone over £85,000 in 1 year selling then no need to register for VAT.

For now I’m going to take their word for it and stay under the £85,000 and then increase sales in July to go over and see if it works. Currently I’m over £42,000 but increasing rapidly month on month.

Important to note if you are at £50,000 for example or £60,000 but have listings worth more than £35,000 you will most likely get the dreaded email from eBay to register for VAT so always keep on eye on total sales and how much you have listed on eBay.

I hope this information helps anyone out their.

[phaz0rz]

Works similarly in the US except the rolling limit is $20k.

We used to be able to go over $20k then just let the account sit until the next year and the tax limitation would go away. Not anymore though.

Anyway cool post and sorry to derail.

[samspalace]

Originally Posted by phaz0rz

Works similarly in the US except the rolling limit is $20k.

We used to be able to go over $20k then just let the account sit until the next year and the tax limitation would go away. Not anymore though.

Anyway cool post and sorry to derail.

Oh really so you can only make $20k in US and then you receive an email from eBay to register for tax?