Vat

[alancdavis]

I notice a few people are adding VAT to second hand items on e bay

I thoughr VAT was charged on new items only ?

To buy something and then the seller adds 20& seems a bit harsh to me .

[mk11jon]

If the seller is vat registered as i am then everything i sell, old or new i have to add vat

[alancdavis]

Ok learn something every day,,cheers

[Sharpy_G]

supposed to be stated in the auction if that is the case

[alancdavis]

Yes it is ...my ignorence of the law

[0630154]

Ok then I buy a van in December @ 17.5% and sell it now at march @ 20%

How does that work ?

Or even if I purchased it when the vat rate was 15% , that's a 5% increase in profit is it not ? @ the current rate @20%

[mk11jon]

No its not your profit, if you're vat registered then you're basically an unpaid tax collector for the government. The seller gains slightly when the rate goes down but loses out when the rate goes up just the same as the buyer!

[Miniliteman]

Asked your VAT people this some time ago and they said you only have to pay VAT on new items.

[alancdavis]

This was my understanding as well.

The reason I asked was because I was going to but a trailer for the car
The used trailer was priced and agreed at 1000 pound , and the I was told the seller wanted an extra 200 VAT
When I asked why he told me when he bought it new he had to pay VAT ( which is normal) and so he wants to add VAT to the price to get his money back.
Problem I see is the goverment took hiss VAT and he intends to get it back by keeping the VAT he charges me

Not only harsh but also I suspect illegal.

[RS1800]

This was my understanding as well.

The reason I asked was because I was going to but a trailer for the car
The used trailer was priced and agreed at 1000 pound , and the I was told the seller wanted an extra 200 VAT
When I asked why he told me when he bought it new he had to pay VAT ( which is normal) and so he wants to add VAT to the price to get his money back.
Problem I see is the goverment took hiss VAT and he intends to get it back by keeping the VAT he charges me

Not only harsh but also I suspect illegal.

it will be correct
if he as it on his books and sells it he will have to pay the vat so will charge vat

you need to find a gypo if you want a trailer without VAT

[alancdavis]

Asked your VAT people this some time ago and they said you only have to pay VAT on new items.

So is this gentelman correct or not

[mk11jon]

Ask to see his vat registration number and get his trading name, then ring customs and excise and check if he is legit, if he has no number then he is trying to pull a fast one!

[RatHead]

All prices on ebay should be inclusive of VAT if the item is VAT applicable, they should not add it on after the auction finishes. This is what ebay says:

"Remember that If you're VAT registered, and therefore must charge VAT on the items you sell, the prices visible to buyers in your listings must be inclusive of VAT."

http://pages.ebay.co.uk/help/policies/business.html#tax

[0630154]

if he is vat reg , then when he purchased it new or not he paid the vat on it .
then he claimed the vat back on his next vat quarter return.

now he is selling it he has to sell it plus vat and then off set the vat back to hmrc , simples

[RStu]

We are VAT reg. To sell on ebay we had to verify our vat, then the "whole amount" is advertised on the sale. You can check vat number here http://ec.europa.eu/taxation_customs/vies/
You have to charge vat on a sale even if second hand IF its a sale for your business. ie, I bought my van new a few years ago when I was not registered. I had to pay the VAT, san ferry anne to £2500. Since that our business has "bought" my van off me, (still my van ;-) but I couldnt charge my business VAT. (as I wasnt) IF and WHEN my business sells my van, it still has to charge VAT to the buyer. (Sorry if it doesnt make sense but we are LTD, so hence our business is like a third party)