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Got a message, today from eBay, that they start to charge VAT

Discussion in 'Ebay' started by ebay3r, Jun 2, 2016.

  1. ebay3r

    ebay3r Newbie

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    So here's the thing. I got a message, today, from eGay, where they are asking me to provide a VAT ID, at the moment, i have just done drop shipping with a turnover of 250€ average a month (net profit). They say there, that if i don't provide a VAT number, they start to charge me VAT from all my sales. If the eBay does the charging, do i have to report anything of my income (which i was planning to, soon) to my home country tax office? I mean since the eBay does it for me, after 15th of June

    Do you have any ideas, what should i do now? I mean this is not just for me, they are going to use this method to every seller located in the EU from 15th of June

    Or i don't know, did you guys get this message? I don't get it. My turnover for this year is under 2000€ and under 100 transactions and i have 7 years old eBay account

    ''Sellers located in the EU who have not provided their VAT identification number are being charged gross fees (VAT included) when listing on EU eBay sites.''

    Is the problem solved that way, if i just continue to list on US eBay sites and stop listing items on EU eBay sites? Or should i just register my eBay account as a Business account, but not provide a TAX id, will eBay then leave me alone?

    edit: oh seems like you cannot hide your real address then, if you use a business account, so drop shipping would be suspicious to buyers..

    Please give me advice, thank you very much
     
    Last edited: Jun 2, 2016
  2. Bernard Rugimer

    Bernard Rugimer Newbie

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    The same problem. I am really puzzled what this means for my future sales. EU restrictions are getting more ridiculous every day.
     
  3. 1morenoob

    1morenoob BANNED BANNED

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    What country is it you're selling it to and which country is it being posted from and where are you yourself?

    Ebay will be charging vat on their fees, not vat on your sales, if you have a vat number then you don't have to pay vat on the fees but you'll have to pay a lot more on sales.
    VAT is based on turnover aswell, you keep posting your profit, profit has nothing to do with vat. And yes obviously you should be sending accounts yourself
     
  4. Bernard Rugimer

    Bernard Rugimer Newbie

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    I am from EU, but signed up on Ebay.com USA. I don't have company registered neither i will i am small seller selling used stuff from time to time. Ebay takes fees and Paypal takes fees. An additional fee won't make sense selling anymore.
     
  5. splishsplash1

    splishsplash1 Power Member

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    Amazon does this too. If you're from the UK sign up for a Self-Assessment Tax for Sole-Trader and you will be able to get a Unique Tax Reference (UTR) Number from them
     
  6. ebay3r

    ebay3r Newbie

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    I'm selling it mostly to the United States, and to United Kingdom also a little bit. The item is being posted from China, and i'm located in the Northern Europe (Finland)

    I hope you an give me advice
     
  7. ebay3r

    ebay3r Newbie

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    Yeah but if i sign up myself as a Sole-Trader, doesn't that mean i have to change my eBay's account status as a Business seller, and that way, my clients will see the real address (when the item needs be returned in for some reason), which is not located in China, and they will start thinking, why is the item delivered from china, when the seller is not