Some eBay Sellers Still Charging 17.5% VAT

Some eBay Seller Still Charging 17.5% VATOne of the great things about being computer-based is that you can move fast and change information quickly … right?

We know these things, don’t we.

This was the basis for us being really confused as to why some eBay sellers are still charging VAT at 17.5%, instead of the new 15% rate.

As those in the UK will be well aware, in an attempt to stimulate the economy and get people spending their money, the UK Chancellor of the Exchequer allowed the VAT rate (sales tax) to be trimmed down on 1 December 2008.

We got in touch with eBay and they helpfully pointed us to the notification that they’ve been sending out to their business auctioneers.

While eBay isn’t responsible for the businesses managing their VAT collection, we assume (and we’re waiting to hear back from eBay on this particular detail) that eBay’s systems have been adding the 17.5% VAT rate to VAT registered businesses to listings prior to 1 Dec when the new rate came in.

eBay listings that closed after the 1 Dec are showing VAT at 17.5%.

Now trying and negate the problem, eBay has offered all effected listings a free a full refund when they re-list their items.

It just appears that some/many eBay sellers aren’t taking them up on this, perhaps because they can’t be bothered with the re-listing hassle, or don’t want to lose the people who have bid on their items.

What’s not clear is what is the legal position with those who are over charged on their VAT. Perhaps they should ask for the extra 2.5% to be taken off the price.

Random eBay auction with 17.5% VAT

Thanks to Sean for the tip on this one.