VAT Question
 

Hey everyone :wavey:

I'm delving into the world of Etsy, and have come across a seller who adds VAT on at the end of buying, so for example, i bought 2 items at £1.78 each, shipping was £1.82, as far as i was concerned the item was £1.78 x 2 = £3.56 plus shipping at £1.82 which totals £5.38, yet this tax charge of £1.08 was sneakily added on at the end, is this legal?

I asked her why tax was added at the end and she said it was a VAT charge, but i thought VAT was added at the beginning to avoid confusion.

You don't go into a shop and ask for a bottle of wine that says it's £10 and then the shop keepers asks for an extra £2 for VAT.

I thought the price you see plus shipping is the price you pay :conf:

I think overseas they add it at the end Ruby.

Hi Kizzy :wavey:

She said that because Etsy is an American company this is how it's done, yet the items came from Stockport, and she said she can't charge the Americans VAT it's only chargeable to the UK and EU.

I've looked at other sellers all over the world and non of them charge tax/VAT at the checkout, she said she has to do it as she's Etsy's biggest seller.

Ooh eck not sure then Ruby sorry, is there nothing to suggest prior to purchase that VAT is charged at so much % and added at the end? You would think they would have to make that very clear.

Never hears of Etsy, I thought you meant EBay :eek:

You only charge VAT if you are over the VAT threshold around 75/80k iirc, If a business owner is paying out a lot of VAT to their suppliers then they can get VAT registered even if below the threshold and reclaim that back.

You been living under the blarney stone Cherie?... ;)

How VAT Works on Etsy

VAT stands for value added tax. It is a tax based on the consumption of goods and services that is commonly found in the EU and select other regions of the world.

Note: What follows is general information. You should always contact your local tax authority or tax advisor for more information.

Learn more about how VAT works for digital items.
Am I required to have a VAT ID?

A VAT Identification Number (VAT ID) is used to identify individual businesses for the collection of taxes.

Everyone that sells goods on a regular basis qualifies for being taxed for VAT. Etsy does not require sellers to have a VAT number to sell in our marketplace. However, businesses in certain countries are encouraged or required by their governments to register for a VAT identification number if they make a certain amount of money in a given time frame.

Because VAT laws vary from place to place, we’re unable to advise sellers on whether or not they need to obtain a VAT ID. If you have any questions about whether you need a VAT ID, please consult your local government.
How will Etsy use my VAT ID?

Etsy needs your VAT ID in order to determine whether or not you, as an Etsy seller, qualify as a business to business customer of Etsy.

In the EU, Etsy has a reporting obligation to share your VAT ID with local authorities on a VIES Return. VIES Returns must include the sale of services as well as goods. This filing applies only to sales from sellers within and delivered within the EU. For example, VAT registered sellers in Ireland supplying goods to VAT registered sellers in other EU member states without charging Irish VAT must complete a VIES return for the Irish Revenue. There is no minimum amount for reporting requirements for these sales.
Am I required to charge VAT on my items?

Please consult your local tax authority or a licensed professional for information on VAT requirements in your location.

For EU countries, the applicable VAT rate depends on the nature of what is sold, and the country in which the supply of goods and services is taxable with VAT. With regard to the supply of goods and services in the EU, the applicable VAT rates can be checked on the site of the European Commission. For example, from January 1, 2015, VAT on services is generally assessed on the country where they are consumed.
What should my invoices look like?

Based on the EU VAT Directive, a business is obliged to issue an invoice where it supplies goods or services to other businesses. The format of the invoice and the invoice requirements are more or less identical in each EU State. For further details on this invoice, please find more information on the site of the European Commission.

Furthermore, we recommend that you check whether your invoices comply with the local invoice requirements.


https://www.etsy.com/uk/help/article..._search_result

Must be

Thanks for the replies guys but what i want to know is that should the VAT be added on before (so basically added on to the item) or after at the checkout?

So you look at a coat and it says £30, the shipping fee is £4, you then think that the total is £34, but when you get to checkout its £40 because they add on the VAT at that point....am i making sense?

Have a look at the stuff on there Cherie, they've got great hand made items, things that are brilliant quality and not mass produced ;)

It's really big in America and Australia.

Not LT being an Etsy sales girl? :omgno:

bite my apple

https://vivavigilante.files.wordpres...-sexy-girl.jpg