Im writing this guide to let fellow Ebayers know that if you win an item in an auction format sale and the seller states that VAT is to be added to the wining bid you dont have to pay no VAT and the seller is making an illegal demand!
At the begining of 2009 Her Majestys Revenue and Customs clarified to EBAY that Vat does not need to be paid on top of an auction format winning bid even if the seller is a business and Vat registered.
VAT can only be added to a Classified or Buy it now format listing. This is clearly stated under Ebay rules and if you are asked for VAT on top of an auction format bid you can refuse to do so and when the seller puts an unpaid item report in just let Ebay know and you will not have to complete the transaction and will not receive an unpaid item strike. The seller will be the one getting the warning off Ebay!
This is just another way to scam more money out of buyers and is confirmed by HMRC.
VAT at the moment works out at £150 for every £1000 so it can add up if its a purchase for a couple of grand.
Not many people know about this ruling so please mark this guide as helpfull so more Ebayers get to know about this little scam. Its quite disgraceful that Ebay dont advertise this fact openly.
I only found out by accident myself and if this guide stops others getting conned then its done its job.
Thanks for taking the time to read this guide.