Be Excellent To Each Other

I've just put the oldest camera on Ebay (well I did on Thursday) and put a proviso on the listing that 15% VAT will be added to the final amount as I have to pay VAT. I don't fancy taking a 15% hit on the sale after all.

However this has sent the unwashed Ebay masses into a frenzy saying I'm wrong for charging it on a second hand item. I'm VAT registered so I don't think I am because the VAT was claimed back on the purchase and therefore presumably I must pay back the difference when I sell.

I will check with the VATman on Monday, but does anyone have experience of this so I can tell these smelly chancers to GTFF?

From what I read online, I think I'm right, but does anyone know?

I always thought that VAT couldn't be charged on second-hand goods if VAT had already been claimed back from their original purchase.

Don't know though.

Well, they don't have to buy it. Add the VAT into the postage and packing cost, or something. Or, is someone bids 115 quid and wins, sell them the camera at 100 quid and add teh 15 quid on?

It reminds me of some sort of broohaha when on the local freecycle someone put up "Wanted: Conservatory" and there was a lot of wringing of hands and nashing of teeth over that as it "wasnt within the spirit of freecycle" or somesuch, but the counterpoint is "What if it was Offered: Conservatory"? In anycase, it's mostly due to the lack of a moral abckbone, which can be traced back to the british ceding India and the ban on bloodsports. Coupled with letting gays into the army, it's no surprise that people are getting upset about VAT nowadays. Back in the day, tehy would have jumped at the chance to pay VAT so they should be pleased about it, and if not get a ebasting from the corporals. kids today, I ask you.

But by me selling it, that leaves me in profit at the expense of the VATman. Which I can't imagine them allowing.

Think of it like this. I buy 100 DVD-R's for £20. I claim the VAT back on the purchase. I then sell those DVD's for £30 but have to add VAT.

I don't pay the VAT on the full amount, but I do pay the VAT on the difference.

So why would the camera be different?

The only other time I've sold company property on Ebay, it was the old laptop and I just absorbed the VAT into the final price and paid it. But I'll be buggered if I'm taking a £60 or so hit this time around.

It's not going to be a small amount though. Could be as much as £75, which is why I'm keen to get it right.

Of course, chances are that the "serious" bidders won't have a problem with it. All the bargain chasing nerds will be scared off once the price rises.

Heh. As it was ever thus.

If you reckon another company might buy it then it's fair enough, as they can claim it back and therefore might bid higher. Otherwise it's just something they have to take accout when bidding, like postage or whatever.

Weird to moan about it though.

It's Ebay, people view it as some kind of religion.

Exactly. It's been made very clear in the listing.

Also I've noticed that a number of dealers in second hand cameras charge VAT so I think I'm probably right. The difference here is I'm dealing with the unwashed Ebay masses who frankly can't even find how to put capital letters into their PM's.

But I will phone the VATman in the morning or possibly my accountant.

I expect the two people who questioned it are Ebay tat dealers who are trying to get a bargain that they can sell on. I think some people make a living trying to win auctions cheaply and then re-selling.

With 40 watchers, I don't think this auction will end with one of them winning.

I looked into this a while back and was surprised to find the law surprisingly complicated. If you are registered for VAT then you are obliged to charge VAT on anything you sell (that would be vatable). However, HMRC have a margin scheme for secondhand stuff where you only charge VAT on the margin you make. Not everything applies, there are a number of exceptions, it's not compulsory and if the sale price is less than the price you originally purchased the thing for then there is no VAT to pay.

http://customs.hmrc.gov.uk/channelsPort ... t#P63_5103

IMHO: Another example of how stupidly complicated the tax laws are in this country.

Just one other thought: you could always treat the final sale price as the VAT inclusive price and then work out the VAT content (which would be (value * vatRate) / (vatRate + 100) ).

This is what I don't want to do because I'm then taking the hit. This will actually mean any business purchaser will be able to claim it back and then get a discount.

Not sure if I want to join a scheme for just one item. This is a one off sale.

get someone else to sell it for you, then you buy a very expensive packet of sweets from them?

Actually, that would be very, very illegal.

I might suggest that would cause a..... bad...law...thingy.

Spoke to the VATman. He says charge them VAT.

Have put that on the listing and anyone who doesn't like it can GTFF.