• Hi, I am the owner and main administrator of Styleforum. If you find the forum useful and fun, please help support it by buying through the posted links on the forum. Our main, very popular sales thread, where the latest and best sales are listed, are posted HERE

    Purchases made through some of our links earns a commission for the forum and allows us to do the work of maintaining and improving it. Finally, thanks for being a part of this community. We realize that there are many choices today on the internet, and we have all of you to thank for making Styleforum the foremost destination for discussions of menswear.
  • This site contains affiliate links for which Styleforum may be compensated.
  • STYLE. COMMUNITY. GREAT CLOTHING.

    Bored of counting likes on social networks? At Styleforum, you’ll find rousing discussions that go beyond strings of emojis.

    Click Here to join Styleforum's thousands of style enthusiasts today!

    Styleforum is supported in part by commission earning affiliate links sitewide. Please support us by using them. You may learn more here.

Deducting VAT on UK Ebay purchase

Hartmann

Distinguished Member
Joined
Feb 10, 2005
Messages
1,286
Reaction score
7
So I wanted to buy a pair of shoes from this guy on Ebay: http://myworld.ebay.ca/2511jacksonshoes/ I noticed that in the auction it states that UK VAT @ 20% is included in the list price. I asked the seller if he offered a VAT deduction to buyers outside the UK (I'm in Canada). This is what he replied:
Sorry no you would have to claim the vat back yourself.Yours Andrew
Now I'm confused, since I thought that the seller is supposed to discount the tax, seeing as he is selling them directly overseas. I do understand that if you were to purchase a pair of shoes while in the UK and then bring them back you could claim the tax back from Her Majesty's Customs on departure. So how am I supposed to claim the tax back once it's been delivered to Canada? Is this a legit move? Am I missing something? Or is this guy running a side Ebay business and can't be arsed to deduct VAT (probably because he gets away with not paying tax anyway)?
 

Blackhood

Distinguished Member
Joined
Feb 5, 2010
Messages
2,895
Reaction score
376
Basically if you are a registered business then you will pay the VAT on items you sell.

This guy is obviously just selling the items which he has already bought. Thus he has paid VAT on them, and is passing that on to you. There's no way around that really.

I suspect the reason he tells you that VAT is included is so that he can't then charge another 20% on top the auction price; a trick that could be used to increase the final sale price of an item.
 

clip

Member
Joined
Jan 18, 2011
Messages
22
Reaction score
0
"Claiming back the VAT" is incorrect. What is supposed to happen is that the seller zero-rates the items for VAT when selling it to you, and you get it at the ex-VAT price, but when it comes into the country, you pay GST (or whatever it is) at the Canadian rate.

Problem is, unless the seller is a proper business that does a lot of international selling, they are very unlikely to do all that and it will make a mess of their ebay accounting - and if they are not VAT registered (as they might not be) will probably take the short-term view that they are losing the VAT that they have already paid out to get the item in the first place.
 

Featured Sponsor

How important is full vs half canvas to you for heavier sport jackets?

  • Definitely full canvas only

    Votes: 92 37.6%
  • Half canvas is fine

    Votes: 90 36.7%
  • Really don't care

    Votes: 26 10.6%
  • Depends on fabric

    Votes: 41 16.7%
  • Depends on price

    Votes: 38 15.5%

Forum statistics

Threads
506,897
Messages
10,592,619
Members
224,343
Latest member
nadiya20232023
Top