eBay and the VAT man ?
Discussion
Little follow on from the eBay managed returns regarding VAT.
We had our first eBay managed returns request like many have recently, we was initially told it would be next year and the last communication from them dated Aug 13th clearly states this, that prompted a phone call but that's another story however I also raised the subject of VAT.
When you accept a eBay managed return eBay charge the seller, copied below is what they charge for a small packet.
"Negotiated rates with Royal Mail, so returns are priced from £2.78 (incl. VAT)
Great news! We’ve negotiated rates with Royal Mail. Now you can use their Tracked 48-hour service for items weighing less than 2kg, starting from £2.78 (incl. VAT)."
Clearly including VAT, this raised the question during my phone call "can you provided me with a VAT invoice for each managed return please" the answer was no but as we are VAT registered it will be taken account on our monthly eBay invoice. I look forward to checking that one, been VAT registered our fee's are reduced by the Lichtenstein 15% vat rate, will they try to give us 15% back from any managed return charges? Royal mail must be charging 20%, I don't know ?
Finally looking at some eBay forums eBay are giving out some dodgy advice on this, copied below....
"VAT Receipts. eBay wants me to call Royal Mail (or Colect + or Parcel Force) and ask them to get an eBay invoice, remove all reference to eBay, falsify it with my company details and then send it to me. Then eBay suggests I submit a fraudulent VAT return. Honestly, you couldn't make this one up. Well obviously someone did but you know what I mean. The seller is paying eBay, eBay has to provide the VAT invoice."
Anyone with better understanding of VAT than me care too comment ?
We had our first eBay managed returns request like many have recently, we was initially told it would be next year and the last communication from them dated Aug 13th clearly states this, that prompted a phone call but that's another story however I also raised the subject of VAT.
When you accept a eBay managed return eBay charge the seller, copied below is what they charge for a small packet.
"Negotiated rates with Royal Mail, so returns are priced from £2.78 (incl. VAT)
Great news! We’ve negotiated rates with Royal Mail. Now you can use their Tracked 48-hour service for items weighing less than 2kg, starting from £2.78 (incl. VAT)."
Clearly including VAT, this raised the question during my phone call "can you provided me with a VAT invoice for each managed return please" the answer was no but as we are VAT registered it will be taken account on our monthly eBay invoice. I look forward to checking that one, been VAT registered our fee's are reduced by the Lichtenstein 15% vat rate, will they try to give us 15% back from any managed return charges? Royal mail must be charging 20%, I don't know ?
Finally looking at some eBay forums eBay are giving out some dodgy advice on this, copied below....
"VAT Receipts. eBay wants me to call Royal Mail (or Colect + or Parcel Force) and ask them to get an eBay invoice, remove all reference to eBay, falsify it with my company details and then send it to me. Then eBay suggests I submit a fraudulent VAT return. Honestly, you couldn't make this one up. Well obviously someone did but you know what I mean. The seller is paying eBay, eBay has to provide the VAT invoice."
Anyone with better understanding of VAT than me care too comment ?
That's exactly the position, we like many UK VAT registered sellers on eBay have provided this proof and have 15% deducted from our fee's, its the new managed returns fee's that are in question, Royal Mail, Parcel Force etc. UK VAT registered will be billing eBay at ??% VAT.
If eBay reduce the managed return shipping fee by 15% is that job done ? I don't know if you read it all Eric but here again is the advice one seller was given by eBay regarding this, copied below.
"4. VAT Receipts. eBay wants me to call Royal Mail (or Colect + or Parcel Force) and ask them to get an eBay invoice, remove all reference to eBay, falsify it with my company details and then send it to me. Then eBay suggests I submit a fraudulent VAT return. Honestly, you couldn't make this one up. Well obviously someone did but you know what I mean. The seller is paying eBay, eBay has to provide the VAT invoice."
If eBay reduce the managed return shipping fee by 15% is that job done ? I don't know if you read it all Eric but here again is the advice one seller was given by eBay regarding this, copied below.
"4. VAT Receipts. eBay wants me to call Royal Mail (or Colect + or Parcel Force) and ask them to get an eBay invoice, remove all reference to eBay, falsify it with my company details and then send it to me. Then eBay suggests I submit a fraudulent VAT return. Honestly, you couldn't make this one up. Well obviously someone did but you know what I mean. The seller is paying eBay, eBay has to provide the VAT invoice."
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