Changes to EU VAT rules from January 2015

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Changes to EU VAT rules from January 2015

Postby rwap_software » Sun Feb 15, 2015 1:17 am

Although SellMyRetro is not currently registered for VAT, we will have to make some changes for fees we charge on the site from 1st January 2015.

The amount of our fees will remain the same for now and business sellers will not be charged any VAT on our fees.

However, the rules mean that for any EU based private individuals who live outside of the UK, who make sales on the site, we have to class the fees as inclusive of VAT at the rate charged by the country of residence of the individual, and then pay that VAT element to the country where the individual lives.

Obviously this is a bit of a nightmare, as we could be talking of having to pay a few pence in VAT to a foreign country, but we can do this (luckily) through the UK government, making just one payment to them per quarter.

From a users' point of view, you will not notice anything different. Luckily you do not need to worry about this issue, as it does not affect goods physically sent to people. Nor does it affect software which is not automatically downloaded when payment is made (eg, if you have to physically send an email with the software as an attachment).

However, we need to be able to differentiate between business sellers and private individuals, so we will be introducing a new tick box on your Edit Profile / Registration form, which asks you to indicate if you are a business seller or not.

In the meantime, we have contacted the handful of sellers concerned and notified them whether we consider them to be business or personal traders and asked for confirmation.

Basically, our view is that a business seller on this site is:

a) Someone who makes and sells their own products.
b) Someone who regularly lists multiple fixed price items for sale.

To recap:
a) If you are only buying products through, then this does not affect you.
b) If you are a business seller, there is no VAT charged on our fees
c) If you are a private individual based in the UK or outside of the EU, then there is no VAT charged on our fees.
d) Any other private individual selling items on the site, based in the EU (and some other countries which are part of the VAT regime) will still pay the same fee, but VAT will be deducted from the amount we charge and paid to your country of residence.
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