Ebay and VAT

honeymonster

Hey,

I just listed an item on ebay and it said my item includes VAT and I will be sent a bill if it is sold. My understanding is if you dont sell over 21k or so then you dont charge VAT? Or am i talking complete ****e?

Stephen

jayok

Sort of.

If you don't sell over a cetain amount in a single year then you don't need to register for VAT. As such you can't claim VAT back on anything you bought and don't charge VAT on anything you sell.

However, this is not restriced to one sale. So the vendor in this instance could have sold more than the threshold in one year (can't remember what it is - maybe 25k or something) and as such even if you bought an item for €1 he will still have to charge you VAT.

The problem here is if you are a company try to buy something from someone who is not VAT registered. As such you cannot claim any VAT back and will cost you the full whack.

jayok

Just re-read your post and mis-understood the original question!

I would imagine that this is standard ebay blurb about VAT. The final price you sell at would be yours (less ebay fees). You are not VAT registered and as such cannot charge VAT.