Withholding VAT (PROFESSIONAL sellers) | News for professional and private sellers

encre4u · 2024-10-04T15:46:10.964000Z

Hello, Any opinion or similar experience? Thanks for sharing it with us Let’s take, for example, an item sold for 12 euros incl. VAT Out of these 12 euros incl. VAT, eBay withholds at source a % that corresponds to the commission on the final price + regulatory operating fees + fees if Sponsored Listing. To keep it simple, let’s take a rate of 10% The amount withheld by eBay will therefore be: 1.20 euros incl. VAT And out of these 1.20 euros, there is 0.20 euro of VAT (10% of 2 euros) Each month, we pay the French tax authorities the VAT for all revenue generated in the previous month In our example, for a sale at 12 euros incl. VAT, the VAT paid to the tax authorities is: 2.00 euros The problem is that in the 1.20 euros incl. VAT that eBay withheld at source, there is also part of this VAT that we pay to the French tax authorities: the 0.20 euro mentioned above So we pay this part of the VAT twice. In this example: 0.20 euros And when a seller makes more than 20,000 sales/year on this marketplace, that represents a significant amount missing from the till: more than 4,000 euros/year WARNING: We are not questioning the fact that eBay adds VAT to the monthly tax invoice received by professional sellers. In our case, we are under the reverse-charge regime and therefore our monthly eBay invoice is excluding VAT (same for intra-community purchases) The issue is that we pay the French tax authorities the full amount of VAT (2 euros in this example), whereas part of it has already been withheld at source by eBay. The seller did not receive the full amount of VAT that the buyer paid at the time of purchase Looking forward to reading you! Michel

Discussions

Withholding VAT (PROFESSIONAL sellers) | News for professional and private sellers | eBay France