VAT on eBay

[kelbillug]

I found an auction on eBay that said VAT is chargable on the item, so be prepared to pay an additional 17.5% on top of the winning bid. My boyfriend says that they can't do that, because tax is already built into eBay prices. Can they charge VAT?

Thanks

[kempie]

If the seller is registered for VAT purposes (therefore has a VAT number) and states clearly in the listing that VAT is to be added to the winning bid then this is perfectly acceptable practice and is not in breach of eBay policy.

[kelbillug]

ok thank you.... there's an extra 70 pounds I'll have to spend! :(

[Oneeyedvic]

HOWEVER, a business can only advertise prices net of VAT if the majority of their business will be to trade (ie VAT registered) businesses.

This is why Matalan when they first started out offered their services net of VAT, but had to change their pricing in store as the majority of their customers were retail.

Whilst you will probably have to pay the VAT in this case, it may be worth emailing them to ask what sort of percentage of their business is to the trade and if you are unhappy you can contact your local trading standards.