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Posted Tue, 05 Sep 2023 18:17:03 GMT by joe mcloughlin
Hello, I had a question regarding this article listed below. I understand from this article you are able to reclaim import VAT when importing goods to sell on an online marketplace, however I am unsure on what sales VAT to pay. Depending on the listing, marketplaces such as eBay collect relevant VAT from the buyer on the sellers behalf as displayed here “eBay will then calculate the VAT payable by the buyer, based on the VAT rate of the item sold in the delivery country. eBay will apply VAT to any shipping charges at the same rate as the VAT applied on the item. eBay will remit the net amount to the seller, and the VAT amount to the appropriate tax authority.” This would mean that the sales VAT has already been collected so no further VAT payment is due. However, I dont know what sales VAT to pay on listings that are deemed VAT exempt such as second hand items. In this scenario there is VAT due on import which can be reclaimed but there is no sales VAT collected from the marketplace as the items are second hand and VAT exempt for the consumer. Should I pay sales VAT on the margin of my profit after the marketplace has paid me? This query is relating to second hand items.
Posted Fri, 15 Sep 2023 12:32:32 GMT by HMRC Admin 32

Trader needs to contact VAT helpline for advice.

VAT: general enquiries

Thank you.

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