eBay Suspended & PayPal Limited Forums - eBay UK VAT crackdown??

I think there may have been some confusion in this thread. From looking at the forum most users seem to be business sellers, so you have been given advice based on being a business seller. This is where the difference between private and business sellers comes it to play.

Private seller - can buy a S7 edge (for example) use it and sell it on Ebay. Or can buy the same S7 edge and a year later it remains unused, sells it on Ebay to recover the cost. In both instances this would not need to be declared.

Business seller - buys the same S7 edge as above but buys it with the sole intention of selling it on to make a profit. This would need to be declared.

You do not need to pay tax on anything earned from private sales, if you sell off your own personal possessions.
You become a business seller when you sell items that you bought (or made) specifically to make a profit and should register with HMRC within 3 months of starting.

In addition a business seller can also have a private seller account on Ebay, only if they use this account to sell personal items.
All this said and done, there are still a lot of sellers on Ebay who are not declaring income.

what if the used s7 edge somehow made a profit? would this still be considered as a private sale.

oompaloompa

08-25-2017 02:23 AM

Re: eBay UK VAT crackdown??

I doubt just 1 company owner can overcome that issue, you need advice....only thing is that you hear chartered accountants being duty-bound to report on you!

Kiroshi

08-31-2017 12:20 PM

Re: eBay UK VAT crackdown??

I can answer this:

You CANNOT create multiple companies to avoid hitting the VAT threshold if it is an obvious avoidance tactic.

You CAN create 2 different companies and split the threshold IF there is a CRYSTAL CLEAR DIFFERENCE between the 2 compainies. Then you could in theroy do this.

For example: John smith creates 'Happy leisure ltd' which he has as an online retailer specialising in leisure wear. John smith also creates ''the organic honey co' whihc sells just honey. Clearly a difference here which in theroy would be viable.

You also need to be certain that you can put a total line between the 2 businesses. Different business bank accounts, bills, etc.

colie72

09-01-2017 09:47 AM

Re: eBay UK VAT crackdown??

Each company is its own entity. If they are run seperately then each company can have its own VAT registration. It is NOT a person that is VAT registered....it is the business.

you can be running 2 businesses at the same time.....one business that makes 90k per year (that must register) and one that makes 50k per year (no need to register). you cannot combine the two amounts and declare you do not have to register for VAT. One business does, the other doesn't, even though owned by the same person. the TAX PROFIT from those businesses is different...because they apply to one person, who WILL be taxed one the combined profit.

dachilla

09-01-2017 10:25 AM

Re: eBay UK VAT crackdown??

Quote:

Originally Posted by Kiroshi (Post 850265)

I concur, wrong place to ask for help. How about you pay taxes if you are leaching out of our economy?

No one here supports tax fraud.

As a foreign seller he's not subject to taxation in your country, even if you and Donald Trump would like so. Thus he's not eligible for VAT in your country and he has to pay VAT in his own country. To compensate such VAT losses for your poor country there is a thing called import sales tax. However this tax is, if not agreed otherwise, to be paid by the importer, namely the customer. Don't thank me. :focus:

opaqueninja

09-01-2017 01:09 PM

Re: eBay UK VAT crackdown??

Quote:

Originally Posted by dachilla (Post 869035)

Wrong.

..and Donald Trump is in America, not England.

dachilla

09-01-2017 01:19 PM

Re: eBay UK VAT crackdown??

Quote:

Originally Posted by opaqueninja (Post 869060)

Wrong.

..and Donald Trump is in America, not England.

Enlighten us by citing the law that makes foreigners on foreign grounds subject to UK VAT, please.

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