Ebay nailing UK and European sellers ...

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Author Message Sixvsix Username: Sixvsix Registered: 03-2002 Posted on Monday, January 29, 2007 - 6:35 am:    I got this in my mailbox today from Big Brother regarding Value Added Tax (or sales tax) on UK & Euro sales. I gues it's a bit like the US state taxes you have there right? Dear ebayer, We would like to announce some changes to our fees and EU structure on eBay.co.uk. Please read this email carefully so you understand the changes fully. In addition, we have some very exciting news about our recently launched, and very successful, eBay Seller Rewards scheme. New EU structure eBay has set up a new entity in the European Union, based in Luxembourg, which from March 1st, 2007, will become the new contractual partner for all our European members. This new entity is called eBay Europe S.à r.l. What does this mean in practice? This means that all non-VAT registered sellers selling on eBay, and based in the European Union, will pay VAT on their seller fees at the Luxembourg rate of 15%. If you do not have a VAT number, eBay will continue billing you for "gross" selling fees (i.e. including VAT). Gross fees will not be changing as a result of the change to our VAT structure. Therefore, the eBay.co.uk selling fees you pay will not change as a result. However, please note that we are making some fee changes at the same time (see below). If you do have a VAT number but have not registered for VAT exempt status with an EU eBay site, we will continue treating you as a non-VAT registered seller, and continue invoicing you for your eBay.co.uk selling fees on a VAT-included basis. Your invoice will no longer specify the amount of VAT you pay. Your invoice will state the total amount due (fees + VAT). This total will include VAT at the Luxembourg rate of 15%, where applicable. Some sellers have been claiming VAT back from HMRC (HM Revenue & Customs) without registering their VAT number on eBay. These sellers will no longer be able to do this. To pay eBay fees net of VAT, all sellers will need to register their VAT number on an EU eBay site. In order to register your VAT number with eBay.co.uk, you must be registered as a business seller. Find out full details of how this affects you on our information page. Fee changes We review our fees on an annual basis, to ensure we maintain a healthy and balanced marketplace. The changes we are making this year are designed to promote a greater volume of trade. There will be changes to the following categories: Mobile and Home Phones (excluding the Mobile Phones with Contracts sub-category), Computing, Consumer Electronics and Photography (i.e. "Technology" products), Books, Music, TV, DVD & Film and Video Games (i.e. "Media" products) and certain of the vehicles categories on eBay Motors. There will also be a change around Reserve Fee refunds. Please read the full changes on our information page. eBay Seller Rewards We are very pleased to announce that following the warm reception from the majority of the seller community, in Spring this year we will be extending our recently launched eBay Seller Rewards Programme. The programme rewards continued activity on eBay, giving something back to our seller community in the form of PayPal coupons. We will at the same time lower the threshold for qualification, so that once you have accrued and paid eBay fees in a single month of more than £150, you will be eligible to register for the programme (conditions apply). Find out more about the eBay Seller Rewards Programme. Regards, eBay International AG So they have finally nailed us for VAT. I knew it would come to this. Looks like some greedy batsrads have been claiming VAT from the UK government which has subsequently bollocksed it up for everyone. Mark my words, there will come a day when ebay will shove itself up the arse so far that we will all go back to advertisng in the local paper. six Gemberbier Username: Gemberbier Registered: 05-2006 Posted on Monday, January 29, 2007 - 8:32 am:    Claiming VAT only works for those who have a VAT registration, so they must own a company and the purchased goods must be registered to the company. If they sell the guitar they must write an official receipt with VAT. Private persons within the European Union can't purchase VAT-free from other European Union countries. Companies can. But this doesn't mean they won't pay the tax at all. They must declare all intracommunal transactions to the VAT department. I think that the problem is, that eBay is a COMPANY, that makes profit on their auction services. Now, VAT on services is high (in Holland and Germany 19%). Now, I think, what went wrong, is that a non-UK professional seller (such as Music-Outlet from Cologne, Germany) has charged German VAT, which is now 19%. As a UK buyer you only have to pay UK VAT, and you can get the difference back. Or, when UK VAT is higher, you must pay extra! The problem is that there are COMPANIES, who use eBay and charge VAT. The best thing would have been to split eBay up into two divisions: private persons and companies, just like they used to do on Marktplaats in Holland. Buying from private persons should be free of VAT. Ginger Fingersmcoy Username: Fingersmcoy Registered: 10-2006 Posted on Monday, January 29, 2007 - 9:21 am:    http://www.ibanezcollectors.com/cgi-bin/discus/discus.cgi I guess change is comming to e-bay soon? What is VAT? Value added tax ? A.K.A. sales tax?? Fingersmcoy Username: Fingersmcoy Registered: 10-2006 Posted on Monday, January 29, 2007 - 9:38 am:    I messed that link up .Anyway you can read my post on pretty much along the same lines as six's posting.The U.S. government hasnt passed any internet sales tax yet but its comming.I told you a few weeks ago change will come but it wont be good for e-bay.Im guessing sites like ICW and others will become little e-bays.Someone has to fill the gap? Fingersmcoy Username: Fingersmcoy Registered: 10-2006 Posted on Monday, January 29, 2007 - 9:42 am:    Sorry Six you already explained what a VAT is Damn im tired!

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