eBay will begin collecting VAT on all eBay fees beginning 1 July 2003

[MegaTsunami]

Just had this e-mail from www.ebay.co.uk :

*** IMPORTANT FEE CHANGES ON 1 JULY 2003 ***
Value Added Tax and New Fee Structure

Dear xxxxxx,

Currently, eBay's EU sellers did not have to pay value added tax (VAT) on eBay fees. A new EU directive on VAT means that beginning 1 July 2003, eBay will begin collecting VAT on all eBay fees on eBay.co.uk and all other EU eBay sites.

This will apply to all eBay sellers who reside, have a permanent address, or are established in the European Union.

At the same time as the implementation of VAT, we will restructure eBay's insertion, feature and final value fees. We will raise some fees, reduce others, while keeping some the same. In addition, we will change our reserve fees. The new fee structure (including VAT) will go into effect on Tuesday, 1 July at 8 AM BST.

Business sellers who have VAT identification numbers, and satisfy the other requirements of the business registration process, will not be charged VAT on eBay fees if they submit a valid VAT ID number to eBay. Business sellers typically will not be able to reclaim VAT paid on eBay fees from their local VAT authorities, so sellers who want VAT exemption on eBay must first submit their VAT ID numbers to eBay directly.

Please note, all goods and services traded between sellers and buyers on eBay are not affected by these changes. Sellers remain responsible for paying the appropriate taxes on their eBay sales and purchases, just as they do for any offline transactions. We encourage all sellers to consult with their tax advisers to make sure they follow all applicable laws.

Please read our help pages for more information.

Thank you for your continued support on eBay.co.uk.

eBay International AG.

[gem]

From The Register

eBay punters hopping mad
By Tim Richardson
Posted: 05/06/2003 at 14:26 GMT

Around 1,000 hacked-off eBay regulars in the UK have already jumped ship and signed up with rival auction site eBid.

eBid, which has around 95,000 members, said sign-ups have been going through the roof ever since eBay announced it was increasing its fees and charging VAT.

Commenting on the feedback, a spokesman for eBid told us: "People are extremely unhappy with the increase in fees - something they believe is simply unjustified.

"Many people believe the VAT hike is being used to cover the increase in fees and they're now voting with their feet," he said.

Angry eBay users who've contacted El Reg are also hopping mad with the way eBay has tried to gloss over the price hikes.

In particular, they've rounded on Ebay's statement that "[it] will raise some fees, reduce others, while keeping some the same" as a "lovely bit of spin" pointing out that only a handful of fees have been reduced or kept the same with the vast majority being increased. ®

Related Story

From The Register
eBay to charge VAT in Europe
By Tim Richardson
Posted: 05/06/2003 at 09:21 GMT

eBay is to start charging value added tax (VAT) in Europe from July 1 to comply with EU legislation on digital services.

eBay warned punters back in March that new EU legislation meant that it would have to start collecting VAT on its digital services from the summer.

These taxes apply to all seller fees paid to eBay - such as insertion fees and final value fees - by sellers who reside in the European Union.

Business sellers who have VAT registration numbers will not be charged VAT on eBay fees.

As eBay explains: "These taxes apply to all seller fees paid to eBay - including insertion fees, feature fees, final value fees and service subscription fees - by sellers who reside, have a permanent address, or are established in the European Union. Under the EU regulations, we will apply the VAT rate applicable in a seller’s country of residence. For example, sellers who are registered on eBay as residents of the United Kingdom will pay 17.5 per cent regardless of where in the EU they list items."

eBay is also using the tax hike to increase, at the same time, some of the fees it charges people for using its service.

In a statement the company said: "We will raise some fees, reduce others, while keeping some the same."

A spokeswoman said that it was "too early to say" if the increased charges will affect eBay's business in Europe. ®

[MegaTsunami]

This thread of mine was locked when I last checked under "General Chatty" with a padlock, now when I come back 20 minutes later it ain't..... what the ????

[squidgy]

Cioz gem had to post first.

[FlorenceSmith]

Just don't start me on the subject of e-bay!!!!!!!

[FlorenceSmith]

Can other people tell me what other auction sites there are availabe. e-bid is mentioned above by gem, and I think there is one on Yahoo, what others?

[gem]

Sorry Mega but I posted before you but on another thread. When I saw your post I decided to merge my thread with yours. Unfortunately I managed to b###er it up so, to keep it short, I locked your thread while I deleted my post, then I posted to your thread.
All's well that ends well!

flo

there are a few others but non compare to Ebay in quantity of items

Yahoo did have a UK site but sold it to Ebay

ones i look at are

http://www.yeehaauctions.com/

http://www.avabid.com/cgi-bin/auction/auction.pl

http://www.cqout.com

http://www.loot.com/

http://www.qxl.com/

http://www.ebid.co.uk/

http://www.micromart.co.uk/

in truth there is only qxl and ebid that have any quantity

ebid have/had a poor reputation, they have no policy on pirate stuff, it is blatently sold, know a couple of people who have been ripped off on there

qxl are good, they have good safeguards and excellent insurance if you pay via their system, but not a lot of items

sure there are many other small ones, but if you want choice you are stuck with ebay

[FlorenceSmith]

Thanks Tone

[gem]

There is also Dabsexchange which I've found to be quite good - of course it all depends on what it is you are looking for Flo.

[FlorenceSmith]

I'm definitely not looking for a sex change, but thanks anyway Gem!

[squidgy]

Seriously - how do people reckon these auctions compare with classifieds? No-one ever seems to discuss this, and I can't understand why.

[gem]

Flo. I think that I already knew that

squidgy. But you don't have to discuss something to be able to assess whether you think something is of 'value' to you, it's not necesarily a group consideration thing, it's dependent on individual tastes/requirements etc. I do accept that discussion can be of benefit but it can also be a hinderence.

[MegaTsunami]

Thanks gem, no problems !

The rest of what I put here is irrelevant to main subject, so self-edited !

[seaviewuk]

swap for a fridge-freezer????

thought not

[FlorenceSmith]

Why can't you sell them Mega? Its a sell-out isn't it? There must be someone who wanted to go.

[MegaTsunami]

Irrelevant to main subject, so self-edited !

[landsker]

eBay is the ONLY place to sell high ticket collectables!
The answer is to re-register a change of address to OUTSIDE the EU! (NOT the USA, as there are state taxes there) Try Gibraltar - no VAT there ! There are many mail drop addresses available which can be used. Valuable if you are a power seller I guess

[nobby]

Seems to me ebay was as bad as anyone for the circulation of stolen goods. Beats me why anyway buys a computer on there only to find out when they try to get parts the machine is stolen !.
If you buy a computer well under value from a man in the pub, what do you expect ?.
I am glad ebid are pinching ebay's business after they kept rying to charge me for a product I never sold !!