UK new VAT laws for ebay seller

[likefrasers]

Received a message from ebay, says:

Hello xxxx,

Starting January 1, 2021, eBay will be legally required to begin collecting and remitting value-added tax (VAT) for consignments (shipments of goods) imported into the UK with a value of up to £135. eBay will charge buyers the applicable VAT amount directly and remit this sum to the UK Tax authorities.

U.S. sellers who create listings on the UK or any EU site and who trade with UK buyers will need to provide both gross price (i.e., the item price including VAT) as well as the applicable VAT rate used to calculate the gross price on all listings. If sellers do not specify gross price and VAT rate, or if sellers specify a VAT rate of 0%, eBay will assume that the price provided is the net price (i.e., the item price excluding VAT), and eBay will calculate the gross price that is displayed to buyers.

We strongly urge sellers listing on eBay.co.uk or any EU site to update their existing listings to include applicable VAT rates as soon as possible. All new listings should include a VAT rate. You will find the field for the VAT rate beside the price when you create or edit listings.

What you need to know:

- Starting January 1, 2021, eBay will start to collect and remit VAT for UK imports on all consignments with a value of up to £135. There will no longer be a VAT exemption for small consignments up to £15.

- In cases where the seller is a non-UK business and the goods are already in the UK, eBay will collect and remit VAT for goods sold to consumers within the UK, regardless of their value.

- Sellers should begin listing the applicable VAT rates on all their existing and new listings as soon as possible.

- Starting March 1, 2021, a VAT rate will also be required on all EU sites when listing items.

To see the latest information on the upcoming changes, please visit UK Seller Center 2021 VAT Changes:

https://sellercentre.ebay.co.uk/glob...21-vat-changes

This email is not intended as tax or legal advice. We recommend that you seek independent tax or legal advice to ensure compliance with applicable laws and regulations.

Thank you for selling on eBay,
Your eBay Team

I am a US seller having products both on UK and US site. I import products to UK every month in bulk and store them in UK warehouse to ship out to UK buyers. I registered UK VAT number 3 years ago and never missed once for VAT report.

Not quite sure what to do now, does that mean I have to add VAT rate on all my UK listings? But in that way I'm doubled charged VAT isn't it?

Anyone else received the same message today?

[e2free]

This been going on from past many months its uk law which ebay and Amazon to implement, in other words its end game for international sellers

You have to find uk account if you wants to continue selling in uk

[likefrasers]

Was speaking to GOV.UK yesterday, they said from 1st Jan ebay will collect VAT on each sales so we don't need to transfer this payment to HMRC anymore.

Originally Posted by e2free

This been going on from past many months its uk law which ebay and Amazon to implement, in other words its end game for international sellers

You have to find uk account if you wants to continue selling in uk

[e2free]

Yes so Basically you have to vat double once you import and then ebay will collect again then you have to claim it back from HMRC

Not easy

[Parsley101]

So let's say you are selling on eBay.com (USA), shipping from USA to UK after Jan 1st 2021. You the seller reside in the USA, and do not possess any VAT registration number.

In addition to eBay sending the required VAT to the UK authorities, what packets of other identifying information (if any) will eBay send to HMRC?

[e2free]

Originally Posted by Parsley101

So let's say you are selling on eBay.com (USA), shipping from USA to UK after Jan 1st 2021. You the seller reside in the USA, and do not possess any VAT registration number.

In addition to eBay sending the required VAT to the UK authorities, what packets of other identifying information (if any) will eBay send to HMRC?

Well its seems like ebay will send name and address of the seller and vat amount collected

[Parsley101]

Based on reading eBay bulletins, plus various online marketplace shipping specialists who have posted Youtube videos recently, it appears that US sellers will not need to get EU or UK VAT numbers because the online venue (e.g. Amazon/eBay) will forward VAT to the relevant authorities.

However, what are the chances that the venues, eBay for example, not to mention the tax authorities themselves, will properly implement this new system without fumbling?

If fumbling occurs at any point in the chain, it's guaranteed that angry buyers will blame the sellers with damning feedback.

Hence isn't it a good idea to withdraw from the EU and UK marketplace, at least until the smoke clears and it's evident that the new system will function properly?

[yellowprintdirect]

Don’t we already pay vat on top of our seller fees? So we paying vat twice now ? Am a uk to uk business only will this effect me?

[yellowprintdirect]

Also am planning on going vat reg if it’s true that eBay collects the vat on behalf of me do I still need to fill out a vat return every 4 months with my accountant. I want to keep all my accounts below the vat threshold as I don’t want to link all my accounts with same vat number. But still want to keep hmrc happy outside of eBay by being vat registered. Just don’t want to input my vat number into my eBay’s if that makes sense.

[agent006140]

Originally Posted by Parsley101

Based on reading eBay bulletins, plus various online marketplace shipping specialists who have posted Youtube videos recently, it appears that US sellers will not need to get EU or UK VAT numbers because the online venue (e.g. Amazon/eBay) will forward VAT to the relevant authorities.

However, what are the chances that the venues, eBay for example, not to mention the tax authorities themselves, will properly implement this new system without fumbling?

If fumbling occurs at any point in the chain, it's guaranteed that angry buyers will blame the sellers with damning feedback.

Hence isn't it a good idea to withdraw from the EU and UK marketplace, at least until the smoke clears and it's evident that the new system will function properly?

this is a chance you have to take,no different than EBAY COLLECting state sales tax from your US buyers.
You can always ask Ebay t o remove neg feedback if this is the case

[Parsley101]

Well, this is a chance I can easily avoid taking. For a few weeks into 2021 I just won't ship to the UK, and meantime watch what happens on the eBay community forum and here on aspkin.

If the new system works, start shipping to the UK again.

However I am also worried about my own lingering connections on the ground in the UK. I have a virtual address in the UK, and a linked bank account, both in my real name. Will HMRC eventually connect the VAT import info to my lingering UK address and bank account? I am a UK citizen but non-resident, decades long expat.

[djswho]

any update ? now arrived offer 1 item , i try create counter offer but no sucess ... : You cannot counteroffer an amount higher than your bin price...

I no understand ...