VAT on eBay fees

[emmab12]

Hi,

I have just purchased SAGE instant accounts and I am importing my transactions.
I have eBay fees that I have paid and I am unsure as to what Tax code to use (i.e. T0, T1, T9 etc..)

eBay states:

"From 1 January 2015, new EU legislation is changing the way VAT is charged on electronically supplied services, such as eBay fees.

If you’re not a business seller, eBay will charge VAT at the rate of the country where you’re based (for example 20% for the UK) rather than the rate of the country where eBay is based (15% for Luxembourg up until 31 December).

All business sellers based in the UK will be invoiced excluding VAT (net pricing) from 1 January. For sellers who have already registered a VAT ID with eBay, they will not notice any change.

eBay business seller fees will be displayed as net prices on the fee pages after 1 January.

If you have indicated that you are a business established in an EU country other than Luxembourg, and have provided us with your VAT identification number, we do not need to charge VAT on your fees. Your invoice will show your VAT identification number, and is issued net of VAT. You might be liable to self-assess VAT under your domestic rules. This is also referred to as the reverse charge mechanism."


So my question is what Tax code do I need to use for eBay fees for transactions:
prior to 01/01/2015
From 01/01/2015 onwards.


Any help would be greatly appreciated

Thanks

 

[TheCyclingProgrammer]

If you're a business seller and eBay have billed you for fees net of any VAT then you need to apply the reverse charge mechanism to the supply. This is effectively charging yourself the VAT at the UK rate and reclaiming the same on the same VAT return.

This would be the case both before 1 Jan and after - nothing has changed regarding VAT on B2B transactions.

I can't help you specifically with Sage but I guess for anybody else to be able to, you need to tell us if you're treating this as a reverse charged B2B supply or a B2C supply (which you would treat as any normal supply from a UK supplier as of 1 Jan I think).