Selling furniture and eletronic equipment on Ebay

Selling Limited compnay furniture and eletronic equipment on Ebay

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We are looking to see some of our furtnioture and laptops and IT euqipment on Ebay and then use the funds to buy new laptops. A couple of questions:

1. Do we have to issue a VAT receipt to Ebay buyers (we are VAT registered)?

2. Do we need to get any receipt from Ebay buyers?

3. Will be acceptable that the funds from the sale are going to land in one of our directors personal bank account and then he is going to tranfer it (either by BACS or cash) into our company account?

Any tips about selling Limited company assets on Ebay welcomed.

Thanks in advance.

Replies (5)

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By Limited Company
26th Feb 2018 13:33

Sorry I meant any GOOD ACCOUNTING PRACTICES about selling Limited company assets on Ebay welcomed.

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paddle steamer
By DJKL
26th Feb 2018 14:36

Have never been convinced E Bay is correct platform re larger items like furniture, may be fine if you live in a large urban conurbation or the items are particularly desirable (vintage/antique) but you may find the prices realised for "collection only" items are limited.

I have to date purchased a car engine (for 99p) and a complete fitted bedroom set of wardrobes etc (buyer dismantles and uplifts- for £250) and I was the only bidder for both.

IMHO Gumtree may be a better option re the bigger items.

Re funds going via medium of individual you may of course be breaking E Bay rules not declaring yourself as a business when selling the items, passing out a vat invoice (if requested) may be tricky if you have not held out the sale as being made by a business in the first place, accordingly there is something to be said for registering business on E Bay as the seller thus avoiding the issue re who is actually selling.

Irrespective of invoices business will need to account for output vat on the sales.

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Replying to DJKL:
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By Limited Company
26th Feb 2018 15:01

DJKL thanks for taking the time to respond in so much detail. I will definitely consider Gumtree as that is a good idea.

Re Ebay business account, i did do some research on ebay beforehand and (I may be wrong on this) the "Business" account appeared t be more for companies buying items to resell or selling items they make rather than people selling items belonging to a business, is that makes sense.

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Replying to Limited Company:
paddle steamer
By DJKL
26th Feb 2018 15:11

Their business accounts are as you suggest, however there is a degree of holding oneself out as someone different from the real seller if using say the director's individual account to sell the items.

If he is the seller, and you expect buyers to want a vat invoice, he certainly cannot issue a vat invoice (unless he as an individual is vat registered).

In effect the business may have sold the items to him (charging vat)and he is reselling them with no vat.

That is why I suggested the business itself registered with say E Bay , this may be a tidier solution.

Thanks (1)
RLI
By lionofludesch
26th Feb 2018 15:32

1. No - unless they ask for one. You will, of course, charge VAT irrespective of whether they ask or not.

2. No.

3. Yes

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