Discussion: eBay VAT Crackdown and PayPal ID Change...

[Authority]

How does everyone feel about some of the new changes being made?

eBays latest VAT crackdown, is it merely to appease the HMRC or will we start to actually see accounts that turnover over the VAT threshold be shut down if they don't register? This seems pretty easy to do as they are able to see what accounts have that turnover and then subsequently see if they are VAT registered or not.

Obviously for many it wont matter, those who are VAT registered, but lets face it, many on here arent!

eBay for business

Action needed: Your UK Value Added Tax obligations in 3 easy steps

Hello

We’re contacting you to remind you about your UK Value Added Tax (VAT) obligations. So that you can continue to focus on your business, we’ve broken down what you need to do into three easy steps.
What you need to know

A UK‑based business making sales in the UK above £85​,000 in any rolling 12 month period should normally register for VAT with HM Revenue & Customs (HMRC), maintain a valid VAT number and collect and pay to HMRC UK VAT on those sales.

What you need to do

As soon as possible, please take the following three steps to make sure that you’re meeting your UK VAT obligations:

1. Check if you need to register with HMRC, visit HMRC’s website.

2. If you have registered with HMRC, provide your UK VAT number to eBay. Doing so enables us to automatically add your UK VAT number to all your listings that require it.

3. Check that any UK VAT number you have already provided remains valid and that the company or trading name which you have provided to eBay matches that on your original VAT registration document. You can do this in your Business Seller Information which can be found in Account Settings / Site Preferences / Business Seller Preferences.

If you don’t complete these steps within 30 days, we may be obliged to stop you from listing new items on ebay​.co​.uk and eventually fully restrict you from selling on eBay, as well as removing any of your existing listings.
Thank you for your support. We’ll continue to work with the tax authorities to stamp down on tax evasion and take action against those who don’t comply with the law. We really appreciate your cooperation.

Thank you,
The eBay Team



PayPals change to user agreement and protection policy

https://www.ecommercebytes.com/2018/...fect-in-april/

The section seems interesting..

"– Changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us."

and changes to the Protection Policy

https://www.ecommercebytes.com/C/abb...521418835.html

[learner00780]

i got this email yesterday

We’re contacting you to remind you about your UK Value Added Tax (VAT) obligations. So that you can continue to focus on your business, we’ve broken down what you need to do into three easy steps.
What you need to know
A UK‑based business making sales in the UK above £85​,000 in any rolling 12 month period should normally register for VAT with HM Revenue & Customs (HMRC), maintain a valid VAT number and collect and pay to HMRC UK VAT on those sales.
What you need to do
As soon as possible, please take the following three steps to make sure that you’re meeting your UK VAT obligations:
1

Check if you need to register with HMRC, visit HMRC’s website.
2

If you have registered with HMRC, provide your UK VAT number to eBay. Doing so enables us to automatically add your UK VAT number to all your listings that require it.
3

Check that any UK VAT number you have already provided remains valid and that the company or trading name which you have provided to eBay matches that on your original VAT registration document. You can do this in your Business Seller Information which can be found in Account Settings / Site Preferences / Business Seller Preferences.
If you don’t complete these steps within 30 days, we may be obliged to stop you from listing new items on ebay​.co​.uk and eventually fully restrict you from selling on eBay, as well as removing any of your existing listings.
Thank you for your support. We’ll continue to work with the tax authorities to stamp down on tax evasion and take action against those who don’t comply with the law. We really appreciate your cooperation.
Thank you,
The eBay Team

[Authority]

Originally Posted by learner00780

i got this email yesterday

Yes its the same email.

I havent actually got it on any of my accounts yet, but I know eBays roll out of messages happens over a period of time, so I know I will at some point.

Are you over the threshold?

How many listings on the account do you have?

Trying to work out how best to play it and pooling some info

[racewilder519]

I got this yesterday too, what did you decide to do 😀

[Authority]

Originally Posted by racewilder519

I got this yesterday too, what did you decide to do 😀

Waiting to hear

[phaz0rz]

Just to clarify:

You read about the upcoming Paypal updates on ecommercebytes and didn't actually receive that email on your UK Paypal accounts, right? As far as I'm aware the PP update is for USA accounts.

Good luck with the VAT thing UK comrades.

[Authority]

Originally Posted by phaz0rz

Just to clarify:

You read about the upcoming Paypal updates on ecommercebytes and didn't actually receive that email on your UK Paypal accounts, right? As far as I'm aware the PP update is for USA accounts.

Good luck with the VAT thing UK comrades.

Yeah, I skim read it and realised it was a US thing first...but it's good to prepare ourselves for it as it will likely be rolled out here too.

UK VAT is a game changer for big selling stealth accounts...I havent slept all night and I didnt even get an email!

[Pitdogrider]

I got same email today asking for VAT number, just went over 85k for the first time for these last 2 months, it's at the 88k in 12 months right now.
They've given me 30days to contact HMRC or they MAY limit the account.
So my actions have been to put shop in holiday mode and cut all sales. That way in 30 days time I will be below the 85k threshold and a vat number would not be needed.
I hope I don't lose this account over a VAT no., I have other accounts but this is my main.
Any thoughts on this?, please don't say I should have spread sales better, I know now.

[Authority]

Originally Posted by Pitdogrider

I got same email today asking for VAT number, just went over 85k for the first time for these last 2 months, it's at the 88k in 12 months right now.
They've given me 30days to contact HMRC or they MAY limit the account.
So my actions have been to put shop in holiday mode and cut all sales. That way in 30 days time I will be below the 85k threshold and a vat number would not be needed.
I hope I don't lose this account over a VAT no., I have other accounts but this is my main.
Any thoughts on this?, please don't say I should have spread sales better, I know now.

I am trying to figure out why they target some accounts. My account has hit 100k+ for two years running and Ive not had this email yet. Im reducing listings of bigger ticket items to bring the monthly total down in an attempt to avoid it when it happens to me.

I guess its touch and go, whether they will close it or not, but evidently from the poster above, they do go through with it.

What are you plans with it?

The whole idea if 'spreading sales' is nice in theory, but as we know, eBay Cassini 'finds' who it likes best for reasons even Stephen Hawkins (RIP) couldnt fathom, so some accounts just become the breadwinner unintentionally. I spread sales but this account just became the best.

[bramblewill]

Originally Posted by Pitdogrider

I got same email today asking for VAT number, just went over 85k for the first time for these last 2 months, it's at the 88k in 12 months right now.
They've given me 30days to contact HMRC or they MAY limit the account.
So my actions have been to put shop in holiday mode and cut all sales. That way in 30 days time I will be below the 85k threshold and a vat number would not be needed.
I hope I don't lose this account over a VAT no., I have other accounts but this is my main.
Any thoughts on this?, please don't say I should have spread sales better, I know now.

I got same email yesterday not really knowing the ins and outs of VAT read up a bit.
By all accounts once you hit £85000 in a rolling 12 month period you are supposed to apply for VAT number straight away. Just leaving account dormant for a couple of months to get below £85k does not do it you are still liable for excess...as far as I can make out...Now realise should not have gone over £85k in first place in 12 month period.
How to play it that`s the thing I have stealth account with own bank account.
If you apply for VAT number using stealth details which you would have to do it is easy for Ebay to check VAT number is valid online.
Will they check? Can you just give any VAT number?

[Authority]

Originally Posted by bramblewill

I got same email yesterday not really knowing the ins and outs of VAT read up a bit.
By all accounts once you hit £85000 in a rolling 12 month period you are supposed to apply for VAT number straight away. Just leaving account dormant for a couple of months to get below £85k does not do it you are still liable for excess...as far as I can make out...Now realise should not have gone over £85k in first place in 12 month period.
How to play it that`s the thing I have stealth account with own bank account.
If you apply for VAT number using stealth details which you would have to do it is easy for Ebay to check VAT number is valid online.
Will they check? Can you just give any VAT number?

You need a National Insurance number to apply for VAT registeration. You can apply in your own name and register the business name - but it sure does open the flood gates for previous trading history and the HMRC.

Yes, its easy to check a VAT number online. Potentially if you do it before eBay 'demand' it, it may not be checked by eBay until a competitor or unruly customer decides to check up on it then reports it.

[racewilder519]

I'm curious to know if everyone who received this message received it on Monday, is it just coincidence, or was it a mass message to high sellers, I'm hoping it's just something eBay decided to do to keep HMRC off their back and it might not actually go any further as such. It's so different to any other account restricting message I've gotten before.

[Authority]

Originally Posted by racewilder519

I'm curious to know if everyone who received this message received it on Monday, is it just coincidence, or was it a mass message to high sellers, I'm hoping it's just something eBay decided to do to keep HMRC off their back and it might not actually go any further as such. It's so different to any other account restricting message I've gotten before.

This was my thought originally, but it seems the law has/is changing , making companies hosting online selling equally liable for VAT evasion as their sellers. So if someone is over the threshold, then they become a 'problem' for eBay/Amazon/Etsy etc as they become a risk by form of liability.

The messages sent dosent say they WILL restrict your account in 30 days, but I am sure the HMRC has got their finger in this situation more than we think. I never recieved the message, but other sellers who are a lot lower, a LOT below the threshold got it. So it dosent make sense entirely.

[racewilder519]

It really is a strange one, yes they worded it as ''we may be obliged to stop you from listing new items on ebay​.co​.uk and eventually fully restrict'' its a bit wishy washy, I thought they had themselves covered with HMRC when they started adding tax onto the ebay fees, it'll be a hard choice for them to make as they stand to loose a lot of their biggest sellers, and in turn they loose the fees that come with it.

[Authority]

Originally Posted by racewilder519

It really is a strange one, yes they worded it as ''we may be obliged to stop you from listing new items on ebay​.co​.uk and eventually fully restrict'' its a bit wishy washy, I thought they had themselves covered with HMRC when they started adding tax onto the ebay fees, it'll be a hard choice for them to make as they stand to loose a lot of their biggest sellers, and in turn they loose the fees that come with it.

Yes this was thought, it was an eBay 'threat', there are so many of those in various forms over the years, so I thought the same as you initially.

But on the other thread about this, someone mentioned that they had restrictions put on account for this reason last year - however he/she is the only person Ive read about where that has happened - and boy I've searched the depths of the internet!, so not sure how legit they are being.

[racewilder519]

Was the other member Uk based also?

I'm surprised they didn't ''get'' me last year too then.... the adding VAT number was quiet unofficial, i was able to add, remove, add, remove, willy nilly, Ah well only time will tell

[Authority]

Originally Posted by racewilder519

Was the other member Uk based also?

I'm surprised they didn't ''get'' me last year too then.... the adding VAT number was quiet unofficial, i was able to add, remove, add, remove, willy nilly, Ah well only time will tell

The guy on this thread said he got shut down, but this is the only person who mentioned it on the entire web.

https://www.aspkin.com/forums/uk-eba...-listings.html

I guess time will tell....will you keep us updated if they shut you down next month?

[racewilder519]

I will indeed, wish me luck, its a perfect account 6000+ positive feedback

[Authority]

Originally Posted by racewilder519

I will indeed, wish me luck, its a perfect account 6000+ positive feedback

Thats good to know. High feedback account - the other accounts, even those way under the threshold but high feedback got hit with the email. It could be they are using feedback as a tool to assess

My accounts dont have anywhere near that feedback.

[racewilder519]

Perhaps, but then its not a very accurate way to target those who are over the threshold or extremely close to it, you could potentially have 1000's of feedback from selling items at say £1, i would have assumed the best way to do it would have been sales figures rather than feedback. And if they are emailing people who aren't close to the £85000, it makes me wonder how serious they are about actually having to add the VAT number, surely if it was serious they would make everyone close to that figure add it and not just single out a few, maybe its an email that's going out in waves to everyone, i read that other post, i cant say i believe it, i know ebay US have blocked accounts in the past due to VAT type numbers but it was only rolled out in the UK in August, and the past few days is the first i've seen of uk members getting properly told they have 30 days to comply, the other emails were just generic type......

[Authority]

Originally Posted by racewilder519

Perhaps, but then its not a very accurate way to target those who are over the threshold or extremely close to it, you could potentially have 1000's of feedback from selling items at say £1, i would have assumed the best way to do it would have been sales figures rather than feedback. And if they are emailing people who aren't close to the £85000, it makes me wonder how serious they are about actually having to add the VAT number, surely if it was serious they would make everyone close to that figure add it and not just single out a few, maybe its an email that's going out in waves to everyone, i read that other post, i cant say i believe it, i know ebay US have blocked accounts in the past due to VAT type numbers but it was only rolled out in the UK in August, and the past few days is the first i've seen of uk members getting properly told they have 30 days to comply, the other emails were just generic type......

But the law has changed making eBay equally responsible - this is where the game change is I feel. Before that, they enjoyed the money they had rolling in from none registered sellers.

I think the feedback number maybe something the HMRC are monitoring remotely, as there have been £1 items sellers getting that email. Its just hard to tell as they must be monitoring something THAT ISNT sales, because I would of gotten that email on at least one of my accounts.

[racewilder519]

yeah, i know what you mean, but if the sellers with high feedback low income have gotten the exact same message as those over £85000, ebay cant really restrict their accounts for not having a VAT number as they don't need one by law, well i know ebay can do as they please but it would be really unfair.... We will see how it pans out in the next month