The Book-keepers Forum (BKF)

Post Info TOPIC: Ebay - VAT on sales


Newbie

Status: Offline
Posts: 1
Date:
Ebay - VAT on sales
Permalink Closed


Hi, 

 

I'm a trainee bookkeeper and I also run a business with my husband, so this is all a learning curve for me! 

We are a VAT-registered company and we have started selling goods online via Ebay and we use Xero accounting software.

What I can't get my head around is VAT on Ebay sales. I believe Ebay deduct 20% from the sale along with their fee prior to sending over the funds. So the money we receive for an Ebay sale is less the VAT. 

What I'm not sure of, is how do I translate this onto Xero. Creating the invoice is the simple part, but do I include the 20% VAT, because technically this has already been paid and is not part of the sum which is transferred to our bank account. Therefore I don't want to declare this in the VAT return as I will effectively be paying VAT twice? Am I completely off the mark here and have it completely wrong? 

 

Thanks! 

 



__________________
CWP


Guru

Status: Offline
Posts: 1313
Date:
Permalink Closed

Best place to ask would be your Company accountants as they will know more about your business and will be the ones who do the end of year accounts if you are only doing the bookkeeping, however I was under the impression that when you were VAT registered and selling on Ebay then you included VAT in your listing price and paid this over on your VAT return.

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Member

Status: Offline
Posts: 14
Date:
Permalink Closed

Songhurstadmin wrote:

Hi, 

 

I'm a trainee bookkeeper and I also run a business with my husband, so this is all a learning curve for me! 

We are a VAT-registered company and we have started selling goods online via Ebay and we use Xero accounting software.

What I can't get my head around is VAT on Ebay sales. I believe Ebay deduct 20% from the sale along with their fee prior to sending over the funds. So the money we receive for an Ebay sale is less the VAT. 

What I'm not sure of, is how do I translate this onto Xero. Creating the invoice is the simple part, but do I include the 20% VAT, because technically this has already been paid and is not part of the sum which is transferred to our bank account. Therefore I don't want to declare this in the VAT return as I will effectively be paying VAT twice? Am I completely off the mark here and have it completely wrong? 

 

Thanks! 

 


Off the mark.  Dont assume.  Trainee bookkeepers should know about ethics and working beyond your ability. You and your company are not the same, so ethics should not be ignored.  

 

Ask your Accountant. Better they help before you make a mess, easier to dig you out of a small hole. Thats what they are there for.  Will be more expensive if you get it wrong, not just in their fees.



__________________


Master Book-keeper

Status: Offline
Posts: 3904
Date:
Permalink Closed

Artois wrote:

.....however I was under the impression that when you were VAT registered and selling on Ebay then you included VAT in your listing price and paid this over on your VAT return.


Hi Doug, hope you're keeping well.

I thought the same, but a bit of googling comes up with this   https://www.ebay.co.uk/help/listings/default/vat-obligations-uk-eu?id=4650   Look at the first question under frequently asked questions.

 



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 1313
Date:
Permalink Closed

Leger wrote:
Hi Doug, hope you're keeping well.

I thought the same, but a bit of googling comes up with this   https://www.ebay.co.uk/help/listings/default/vat-obligations-uk-eu?id=4650   Look at the first question under frequently asked questions.


 Hi John, all good here thanks, how's things with you?

The link you posted was for sales to the EU, the OP didn't mention that they were foreign sales so I assumed they were UK sales, even more reason to get the Company accountant involved as VAT rules in the UK are complicated enough and foreign VAT even more so.

Cheers 



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About