|
Strictly speaking Ebay should refund the VAT already wrongly charged directly to you. Also strictly speaking, you don't have to be a VAT registered business to qualify for them not to charge vat, it is enough that you can prove to them that you are "in business" - whether you are vat registered or not isn't actually the criteria that matters - it just makes it easier for you to prove as you won't have a vat number if you weren't in business!
Just remember though that when you "import" goods/services from other EU countries, you have to reverse charge for the VAT which means that you have to work out the equivalent UK VAT, treat it as output vat by adding it to box 2, which of course is added to normal UK VAT in box 1, the total therefore goes in box 3. The same amount that you entered in box 2 gets added to input VAT in box 4, so overall, there is no effect (as long as you are on the standard VAT scheme), but the VAT inspectors do expect the VAT returns completing correctly. Also remember that if you are using the flat rate scheme, you can't claim the input vat in box 4, but still have to pay it as output vat in box 2, so you end up paying it, i.e. it costs you more than you would have been under the normal vat scheme rather than the flat rate scheme.
Of course, if the figures involved are small, I can't imagine the vat inspectors being too excited and they would probably just tell you to do it right in future, but if the figures add up, you'd be looking at their standard penalties, interest etc if you don't follow through the reverse charge vat rules.
And they said that trading between EU countries would be easier!!! That's a laugh isn't it!!!
__________________
Wellwood Hoyle Associates Limited
Chartered Certified Accountants and Business Advisers
|
Linear Mode
