eBay and VAT

If i sell a product on ebay for £xx and i submit the VAT element as part of my VAT return. I then get a payment from eBay for the £xx minus their fees am i correct that i do not need to pay VAT on this?

Hi.
There would be two transactions here.
The first transaction would be your sale to the customer and then the second transaction is the commission which Ebay are charging you.
The sale would be recorded in your VAT return and the commission would then be recorded as a purhase and if they have charged you VAT(depending on whether Ebay are in the UK for this commision charge),this would be your input tax to reclaim.
Thankyou.
Regards.

To reiterate, if you sell something on eBay for £12 then your net sale (yours to keep) is £10 and the £2 is VAT which you pay to HMRC. eBay will not actually send you £12, they will deduct their fees, lets say it's £4, so you receive £8 into your Paypal/bank account. The value of your sale is not £8, it is £12. As long as you are declaring output tax on the £12 (£2 VAT) then that is correct.