Ebay and VAT

[TW]Fox · 5 Sep 2007 at 14:18

I keep nearly getting caught out on nicely priced items with 'Please add VAT to final price' casually slapped somewhere in the middle of the listing.

Is this really how things are supposed to be done? I've bought used (and infact new) items from Ebay sellers before and the VAT is simply included in the total auction price.

Is it really acceptable that one should have to bid then manually add VAT on after the auction finishes? Sounds like a dodgy scam to make things appear cheaper to me.

Adz · 5 Sep 2007 at 14:20

It seems quite logical to me to quote prices before VAT, especially if the item is likely to be sold B2B. I believe eBay offer the facility to automatically add the VAT at checkout time.

It should however be made crystal clear in the listing that the price excludes VAT.

ots3go · 5 Sep 2007 at 14:21

[TW]Fox;10037159 said:
Sounds like a dodgy scam to make things appear cheaper to me.

It is.

Just like the huge postage costs for some items.

agw_01 · 5 Sep 2007 at 14:23

ots3go said:
It is.

Just like the huge postage costs for some items.

haha, been there before.

1gb of PC3200 for £30. Great I thought.

Until I noticed the £60 postage costs :rolleyes:

[TW]Fox · 5 Sep 2007 at 14:25

Adz said:
It seems quite logical to me to quote prices before VAT, especially if the item is likely to be sold B2B

It's ebay, most items are C2C or B2C.

Adz · 5 Sep 2007 at 14:26

agw_01 said:
haha, been there before.

1gb of PC3200 for £30. Great I thought.

Until I noticed the £60 postage costs

That's a scam to save on listing fees. A VAT registered business charging VAT on the final bid price and making it clear they're doing so is not.

Majago · 5 Sep 2007 at 14:30

Adz said:
That's a scam to save on listing fees. A VAT registered business charging VAT on the final bid price and making it clear they're doing so is not.

Indeed.

Also, individual (private) sellers shouldn't be adding VAT on anyway as they won't be VAT registered.

[TW]Fox · 5 Sep 2007 at 14:32

Adz said:
That's a scam to save on listing fees. A VAT registered business charging VAT on the final bid price and making it clear they're doing so is not.

So why do most VAT registered businesses selling brand new stuff (I am looking at used items although appreciate it makes little difference) include VAT in the final bid price?

It's misleading. It's primary purpose is to make an Ebay bargain hunter think 'Oooh thats cheap!'.

Adz · 5 Sep 2007 at 14:35

[TW]Fox;10037243 said:
So why do most VAT registered businesses selling brand new stuff (I am looking at used items although appreciate it makes little difference) include VAT in the final bid price?

It's misleading.

Because it's easier and prevents any backlash from customers who haven't read the description and assumed the price included VAT.

If you want to see examples of misleading sales practices, I can find you plenty far worse than that.

stoofa · 5 Sep 2007 at 16:12

The "Extra High Postage" system is to get around listing fees and is not allowed by EBay.
If you report items with stupid postage they will get pulled.

The placing of "Don't forget the VAT" in the middle of an advert is just highly frowned upon.
Just means you've got to be extra careful before bidding.
I tend to read and re-read all items before bidding anyway - seen too many people buy empty boxes etc.

Dr House · 5 Sep 2007 at 16:18

Funny thing is I bought something from a seller that charged extra VAT, I emailed a copy of my EU VAT registration number and asked him to reverse charge the VAT. Which surprise surprise he would not do.

Jambo · 5 Sep 2007 at 17:29

[TW]Fox;10037208 said:
It's ebay, most items are C2C or B2C.

There is loads of B2B sellers on ebay.

Teal · 5 Sep 2007 at 17:47

Paras said:
Funny thing is I bought something from a seller that charged extra VAT, I emailed a copy of my EU VAT registration number and asked him to reverse charge the VAT. Which surprise surprise he would not do.

As long as you were not in the same country as him he has no valid reason not to do it so that's one I'd report to his local VAT authority

Carling · 5 Sep 2007 at 21:12

I find it quite annoying, I have come to the mindset that anything new on ebay will need vat adding, not after im wrong.

divine` · 5 Sep 2007 at 21:36

[TW]Fox;10037243 said:
So why do most VAT registered businesses selling brand new stuff (I am looking at used items although appreciate it makes little difference) include VAT in the final bid price?

It's misleading. It's primary purpose is to make an Ebay bargain hunter think 'Oooh thats cheap!'.

Didn't we have this argument when OcUK changed sites because their prices are all primarily listed Ex. VAT (now in big red writing) with VAT Inc. prices listed in pale grey nearby in a font half the size?

LewisStuart · 5 Sep 2007 at 21:37

always read the whole listing no matter how small the text

Energize · 5 Sep 2007 at 21:44

I never understand why online websites even advertise their prices excluding vat. It's not like a business is going to buy from another retailers online website so it's a pretty poor excuse.

weringo · 5 Sep 2007 at 21:50

divine` said:
Didn't we have this argument when OcUK changed sites because their prices are all primarily listed Ex. VAT (now in big red writing) with VAT Inc. prices listed in pale grey nearby in a font half the size?

Theres one thing putting the price inc VAT in smaller writing than the price without VAT, but it's completely our of order to stick it in the middle of the auction page amongst all the other product information, shipping info etc.

zain · 5 Sep 2007 at 22:16

When you are asked for VAT ask for an invoice stating that, most of them are not even VAT registered.

Maybe just me but I don't find eBay beneficial anymore, goods are poor quality, service sucks and to sell on there is a waste of time.