Ebay and VAT. Should they collect it?

[roosterboost]

I'm troubled by the loss of tax revenue from folk buying from Ebay.

 

In recent weeks I've bought all sorts of new items from light bulbs to guitar strings. Virtually everything that I bought turns out to have been shipped from China, Korea or Hong Kong.

The items arrive through the post in a jiffy bag. No problem there.

 

However, there is no import duty and no VAT. That's great for me but not good for UK traders or the exchequer.

 

Surely there is a way that when buying goods from abroad on Ebay that Ebay could collect the taxes due to the UK as part of the selling price.

[Cyclone]

Do retailers from China collect VAT? They certainly aren't going to fill in a UK VAT return as they aren't a UK registered business...

 

I'd have to check, but I suspect that retailers pay VAT or equivalent in their own locale on sales and not on the destination address.

 

Import duties are entirely different and they depend on what exactly the item is.

[restauranter]

If it is under a certain value. it is not worth the effort/paper work

[roosterboost]

If it is under a certain value. it is not worth the effort/paper work

 

I sort of gathered that. But if you were a British trader trying to compete it's not good news. You are up against a 20% price handicap before you start.

[geared]

but you don't have to ship your crap from the other side of the planet, so it's swings and roundabouts really.

 

There are plenty of UK based TAT merchants.

[restauranter]

if you import anything over £15 there will be duty and import tax chargeable ,

[milquetoast1]

Ebay is irrelevant in the debate.

 

The issue is with all imports, however you make them. Basically it's your responsibility to pay the correct VAT and duty if it is due.

 

In practice if the parcel looks like it might be something expensive then Customs are likely to intercept. Customs seem to be much keener with items from the US, and US exporters are also much more likely to be honest with stating what the goods are and what the value is.

[rodnreeluk]

I'm troubled by the loss of tax revenue from folk buying from Ebay.

 

In recent weeks I've bought all sorts of new items from light bulbs to guitar strings. Virtually everything that I bought turns out to have been shipped from China, Korea or Hong Kong.

The items arrive through the post in a jiffy bag. No problem there.

 

However, there is no import duty and no VAT. That's great for me but not good for UK traders or the exchequer.

 

Surely there is a way that when buying goods from abroad on Ebay that Ebay could collect the taxes due to the UK as part of the selling price.

You don't make sense. Surely you used EBay to buy your goods at the cheapest price (especially as you are buying from China, etc). Now you are saying you want to pay more by adding on VAT?? If you really wish to pay VAT then buy from a UK seller - simple! Just don't give the government ideas on how to get more tax out of the rest of us.

[Cyclone]

if you import anything over £15 there will be duty and import tax chargeable ,

 

As appropriate to the thing you are buying. But there will NOT be VAT.

[anywebsite]

As appropriate to the thing you are buying. But there will NOT be VAT.

 

It's called import VAT & it's the same rate as normal VAT. Foreign merchants can prepay it for faster delivery, or customs can intercept the package & charge you VAT when you collect it.

Edited November 14, 2014 by anywebsite