ReginaldDuck

We have relayed this information again to the marketplace (eBay) to no avail. Your answer confirms the findings of our tax advisors both here in Gibraltar and in the UK, which is that neither of those scenarios applies to us and that we do not qualify to register for VAT. eBay does not recognise the reply from HMRC via this community thread or a direct e-mail from any member of HMRC that states the above in writing. They will only accept a letter of exemption in writing by HMRC, not by e-mail or in any other non-physical format. We have explained in detail, with the help of our accountant and tax advisor, why this is not possible. We have used the information in your replies and provided a link to this thread, on which they insist on this physical letter. I appreciate HMRC taking the time to reply in detail to my previous questions, which you have done a number of times. We have instructed the services of a tax advisor in the UK who is preparing a letter to further explain our fiscal position to them in an attempt to make sense of the situation. If there is any other avenue that we can apply to for this letter, it would be greatly appreciated, it is a very frustrating situation for all parties involved. I am sure this thread will be of help to others, as Jason Croke highlighted that eBay commonly asks for this illusive letter. We now know it is not something that HMRC provides, creating a spiral of confusion for all parties involved.

The customer is the importer in all instances where the item is over £135. All goods are sent from Gibraltar both for items under £135 and above therefore not making any taxable supplies. We have not sold any items that are in the UK. I have told eBay that we would like to exclude the entire UK market to avoid this issue happening again, which they are happy with us doing after the restriction has been lifted. They have currently restricted our account from any sales until we either get a valid UK VAT number or a letter stating that we are exempt from joining the UK VAT for the points mentioned above. I have called the HMRC helpline and they provided the following e-mail to apply for a letter: btcvatexemptions@hmrc.gov.uk Ebay provided us with a different e-mail which is: vrs.newregistrations@hmrc.gov.uk, and they have confirmed that they do receive letters of exemption from HMRC for overseas territories and that they are quick to reply through this medium. I have e-mailed both these addresses on the 19th of March and have not received a confirmation or any kind of reply. All of our trading on eBay is frozen until we provide said document, would greatly appreciate any help possible on this matter.

Once again thanks for the detailed information. I have relayed this information to a person at eBay directly with a copy of the link for the above thread and they have replied with the following: “I’ve been advised that an email or a link to a forum from the HMRC is not sufficient in an appeal, and will not be considered. A letter of exemption will be required to lift the restriction, if the seller does not provide a valid VAT number.”

Hi, Thanks for replying. In this case, we are selling goods, some over £135, through eBay.co.uk to UK clients. For items under £135, eBay has collected the VAT. For items above £135, the client is responsible for paying the additional VAT through the courier; Thus, I believe, making him the importer. eBay has asked us to get an Exemption letter or Certificate from HMRC or to register for UK VAT, and until then, our account is restricted. I am still non the wiser on what to do next. Help on this is much appreciated.

Do Gibraltar businesses who want to sell their products through eBay.co.uk have to apply to HMRC for some sort of VAT Exemption/Exception? Please can you advise?