Private seller, not VAT registered – why charge?

[susan_emelia]

I listed an item on eBay that I had originally purchased from Argos, so the VAT was already paid at the time of purchase. I’m just a private seller, not VAT registered, and I’m simply selling off some unused software licenses—not running a business or making a profit.

The confusing part is that eBay is automatically adding 20% VAT on top of my “Buy It Now” price for the buyer. Their support team insists this is standard, but it feels like double taxation since I never reclaimed the VAT in the first place. Is eBay acting as a reseller here, or is there a specific piece of legislation that requires them to charge VAT in these cases?

[ft16]

Originally Posted by susan_emelia

I listed an item on eBay that I had originally purchased from Argos, so the VAT was already paid at the time of purchase. I’m just a private seller, not VAT registered, and I’m simply selling off some unused software licenses—not running a business or making a profit.

The confusing part is that eBay is automatically adding 20% VAT on top of my “Buy It Now” price for the buyer. Their support team insists this is standard, but it feels like double taxation since I never reclaimed the VAT in the first place. Is eBay acting as a reseller here, or is there a specific piece of legislation that requires them to charge VAT in these cases?

You're not UK based so eBay collects the tax under the Market Facilitator rules, same as Amazon when you last asked about this.

[murdered_by_ebay]

register an ebay UK account and buyers will not be charged VAT , if the registration country or item location country is outside the UK ebay will charge VAT

and if the account registration country is outside the UK and the item location is in the UK the account will be restricted if no VAT number was provided

[susan_emelia]

Originally Posted by murdered_by_ebay

register an ebay UK account and buyers will not be charged VAT , if the registration country or item location country is outside the UK ebay will charge VAT

and if the account registration country is outside the UK and the item location is in the UK the account will be restricted if no VAT number was provided

Got it, thanks. So eBay applies VAT based on account and item location rules, not whether I already paid VAT. Makes sense now.

[mon73]

eBay is required to collect VAT on the final sale price because they are considered to be facilitating the sale. Even though you already paid VAT when you bought the software, and you're selling as a private individual, eBay is obligated to charge VAT on the total amount the buyer pays. This isn't double taxation from your perspective; it's VAT being applied to the transaction facilitated by eBay according to current regulations.