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VAT question

Paying VAT on eBay final value fees

Hi all,

I have a question on eBay charging me VAT on sellers fee's.

I am charged 20% on my seller fee's at the end of the month by eBay. 

Does this mean I can exclude them from my sales price on eBay please?

This is an example.

Purchase price £9.99
Sell price £13.28
eBay category fee's 9% 
PayPal 2.4% + 20p

VAT already paid on purchase of £9.99 is £1.67.

eBay Final value fee £1.20
Paypal 32p + 20p add on fee
Profit £1.01
Vat of remaining £3.29 0.55p

Ignoring the VAT I paid when I purchased the item and concentrating on the remaining £3.29 mark up of the sale I have worked out from these fee's of the final value fee of £1.20 >+ 24p is VAT
profit of £1.01 >+ 20p is VAT 
paypal of 52p >+ 10p is VAT

This makes up the 55p VAT I have paid from the £3.29.

But because eBay will charge me 20% VAT on the 9% final value fee of £1.20 which is the 24p from above in my monthly invoice which i will claim back my question is can I deduct the 24p from the sales price as it will be charged in my invoice by eBay and then claimed back as in input by me please? 

Thanks in advance for any help you can give me.

Replies

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By SXGuy
20th Oct 2018 17:14

I think you may be confused as to how vat is calculated.

I'd suggest seeking an accountant.

Thanks (1)
20th Oct 2018 17:15

Wow. How complicated is that ?

Let me check - you want to claim back 24p from the VATmen and then reduce your sales by the same 24p so you'll pay less tax - is that it ?

Thanks (1)
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By Keely A
20th Oct 2018 18:28

Yes that's right at the moment I just divide the total price by 6 subtract the input VAT I have already paid on the purchase and that leaves me with what I am liable to pay for that sale.

But I feel like i'm paying the eBay final sales fee's VAT twice so wondered if I could deduct it from the price as I will be charged that from eBay at the end of the month in my invoice.

Thanks (0)
to Keely A
20th Oct 2018 18:34

No, of course you can't. If you receive business money, you pay tax on it, you don't get a tax rebate. Common sense should tell you that.

As mentioned above, you need to engage an accountant as you're sinking fast.

Thanks (1)
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By Keely A
20th Oct 2018 18:44

I already sort my VAT out with no problems and i'm not sinking at all.
Like i said I am charged by eBay for selling fee's VAT but it feels like I am paying it twice as I already pay it for the margin I add on from buy/sell price.
I never mention a tax rebate either.

Thanks (0)
to Keely A
20th Oct 2018 18:54

You say you want to reduce your sales by the VAT.

Do you think that that will increase or decrease your tax bill ?

Sorry but, however well you think you're coping, asking this question shows that you aren't.

Thanks (1)
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By Keely A
to lionofludesch
20th Oct 2018 19:00

It's all very straight forward normally I take the sale price divide by 6 = amount owed.
Then I take the input tax paid on the purchase and deduct it from that amount owed that leaves me with what I owe.
Tell me where that is wrong?

I am just asking if there is anyway to not pay the eBay final value fee's VAT twice because if you don't ask you don't learn.

Thanks (0)
By Ruddles
to Keely A
20th Oct 2018 19:04

You’re not paying the VAT twice. Engage an accountant and s/he’ll explain.

Thanks (0)
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By SXGuy
to Keely A
20th Oct 2018 19:25

So let me see if I understand you.

20% of sales is your output vat, 20% purchases is your input vat.

So you have net sales + vat - net purchases + vat.

So Where's your final value fee gone?

Net fee + vat?

Vat on profits is irrelevant.

Thanks (0)
to Keely A
20th Oct 2018 22:57

Keely A wrote:

It's all very straight forward normally I take the sale price divide by 6 = amount owed.
Then I take the input tax paid on the purchase and deduct it from that amount owed that leaves me with what I owe.
Tell me where that is wrong?

You should be claiming input tax charged on all your costs - one of which is eBay's fees.

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