Withholding VAT (PROFESSIONAL sellers)
Summary: encre4u shares an experience regarding VAT for professional sellers on eBay. They explain that part of the VAT is withheld at source by eBay, but that they still have to remit the full amount of VAT to the French tax authorities, resulting in a double payment. *miss-tigri* replies with a link to a forum, while felin12 advises consulting lawyers and accountants through CCI drop-in consultations. encre4u expresses hope of finding a solution to share with the community.
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
encre4u
OP2 years agoHello Felin12
Thanks for this additional information
If one day we get a worthy answer, we will share it with great pleasure because this issue concerns all professional sellers who pay VAT over to the French tax authorities every month
And surely we can’t be the only ones on eBay 🙂
Kind regards,
Michel
felin12
·2 years agoHello
@encre4u
As a дополнément to the advice given by @lingma85 in the other thread (for the tax office)
you can also see whether your regional CCI has "lawyer & accountant advice office hours"
best regards
@lingma85
encre4u
OP2 years agoHello miss-tigri,
Since I didn't put the post in the right place ( Mentors' help instead of Call for testimonies ), I don't know how to delete the first post
But maybe you do?
And if you have an answer to the issue with this VAT, don't hesitate to let us know, in the interest of the entire eBay Community within which friendliness should be the rule
Kind regards,
Michel
encre4u
OP2 years agoHello miss-tigri,
Having not posted the post in the right place ( Mentors' help instead of Call for testimonials ), I don't know how to delete the first post
But maybe you do?
And if you have an answer to this VAT issue, please do let us know, in the interest of the whole eBay Community within which friendliness should be the rule
Kind regards,
Michel
encre4u
OP2 years agoSmall correction:
* And in these 1.20 euros, there is 0.12 euro of VAT (10% of 1.20 euros)
* The problem is that in the 1.20 euros incl. tax that eBay withheld at source, there is also part of this VAT that we pay to the French tax authorities: the 0.12 euro indicated above
*miss-tigri*
·2 years agoAnd will the next post be with €14? And €1.40 in fees?
https://communaute.ebay.fr/t5/Aide-entre-membres/TVA-et-Facture-Fiscale-Mensuelle-fournie-par-eBay-aux-Vendeurs/td-p/2949302