PayPal & Ebay VAT

[Fadcode]

Just a heads up, as I couldnt find anything related to this on the site.
Pay Pal and Ebay are now charging 20% VAT on their charges, so Paypal is now just under 5% inc VAT
and Ebay is 12%, inc VAT, also if you charge postage on Ebay, you will be charged 20% vat on that too.
With Ebay it makes no difference where in the world you sell your goods, they will charge the VAT on top of their charges.
Make sure you take these charges into account when selling on Ebay, and accepting PayPal.

 

[Hodge]

I had the same issue with Varusteleka. Also, they say they are having postage issues. However, I have received an item from China which I had ordered at a later date!

 

[Corso]

lets hope they pay their taxes in the UK...

 

[Tony]

That's interesting considering this is from the PayPal website

PayPal and VAT​

We don't charge VAT on any payments sent or received.
At their own discretion, a seller may add tax within the sale price of their product/service.

 

[Fadcode]

The VAT charged is on their charges, not on the money paid for an item or received in payment for an item, but if a seller did charge a buyer VAT within the price structure, then this would be reflected in the total paid in fees to Paypal.
example.
Item cost £100
Vat to buyer @20% £20
Buyer Pays. £120

Paypal charges seller
@4% of £120. £4.80
VAT
@ 20%.of £4.80 .96

Total PayPal chargefor transaction. £5.76

 

[mimo]

Also beware of VAT when buying from eBay sellers in the EU: eBay will now apply UK VAT on anything you buy, and not add it to the shown price until after you've agreed to buy! Even non-ratable items like used clothes, kids' clothes etc. Just one nasty shock to bear in mind for buyers as well as sellers. I've bought quite a few good bits of kit from Germany, but just not worth it any more.