I'm a trainee bookkeeper and I also run a business with my husband, so this is all a learning curve for me!
We are a VAT-registered company and we have started selling goods online via Ebay and we use Xero accounting software.
What I can't get my head around is VAT on Ebay sales. I believe Ebay deduct 20% from the sale along with their fee prior to sending over the funds. So the money we receive for an Ebay sale is less the VAT.
What I'm not sure of, is how do I translate this onto Xero. Creating the invoice is the simple part, but do I include the 20% VAT, because technically this has already been paid and is not part of the sum which is transferred to our bank account. Therefore I don't want to declare this in the VAT return as I will effectively be paying VAT twice? Am I completely off the mark here and have it completely wrong?
Thanks!
Artois said
Fri Jun 9 07:04 2023
Best place to ask would be your Company accountants as they will know more about your business and will be the ones who do the end of year accounts if you are only doing the bookkeeping, however I was under the impression that when you were VAT registered and selling on Ebay then you included VAT in your listing price and paid this over on your VAT return.
HelenF02 said
Fri Jun 9 10:43 2023
Songhurstadmin wrote:
Hi,
I'm a trainee bookkeeper and I also run a business with my husband, so this is all a learning curve for me!
We are a VAT-registered company and we have started selling goods online via Ebay and we use Xero accounting software.
What I can't get my head around is VAT on Ebay sales. I believe Ebay deduct 20% from the sale along with their fee prior to sending over the funds. So the money we receive for an Ebay sale is less the VAT.
What I'm not sure of, is how do I translate this onto Xero. Creating the invoice is the simple part, but do I include the 20% VAT, because technically this has already been paid and is not part of the sum which is transferred to our bank account. Therefore I don't want to declare this in the VAT return as I will effectively be paying VAT twice? Am I completely off the mark here and have it completely wrong?
Thanks!
Off the mark. Dont assume. Trainee bookkeepers should know about ethics and working beyond your ability. You and your company are not the same, so ethics should not be ignored.
Ask your Accountant. Better they help before you make a mess, easier to dig you out of a small hole. Thats what they are there for. Will be more expensive if you get it wrong, not just in their fees.
Leger said
Sat Jun 10 15:00 2023
Artois wrote:
.....however I was under the impression that when you were VAT registered and selling on Ebay then you included VAT in your listing price and paid this over on your VAT return.
Hi Doug, hope you're keeping well.
I thought the same, but a bit of googling comes up with this https://www.ebay.co.uk/help/listings/default/vat-obligations-uk-eu?id=4650 Look at the first question under frequently asked questions.
Artois said
Sun Jun 11 09:01 2023
Leger wrote:
Hi Doug, hope you're keeping well.
I thought the same, but a bit of googling comes up with this https://www.ebay.co.uk/help/listings/default/vat-obligations-uk-eu?id=4650 Look at the first question under frequently asked questions.
Hi John, all good here thanks, how's things with you?
The link you posted was for sales to the EU, the OP didn't mention that they were foreign sales so I assumed they were UK sales, even more reason to get the Company accountant involved as VAT rules in the UK are complicated enough and foreign VAT even more so.
Hi,
I'm a trainee bookkeeper and I also run a business with my husband, so this is all a learning curve for me!
We are a VAT-registered company and we have started selling goods online via Ebay and we use Xero accounting software.
What I can't get my head around is VAT on Ebay sales. I believe Ebay deduct 20% from the sale along with their fee prior to sending over the funds. So the money we receive for an Ebay sale is less the VAT.
What I'm not sure of, is how do I translate this onto Xero. Creating the invoice is the simple part, but do I include the 20% VAT, because technically this has already been paid and is not part of the sum which is transferred to our bank account. Therefore I don't want to declare this in the VAT return as I will effectively be paying VAT twice? Am I completely off the mark here and have it completely wrong?
Thanks!
Off the mark. Dont assume. Trainee bookkeepers should know about ethics and working beyond your ability. You and your company are not the same, so ethics should not be ignored.
Ask your Accountant. Better they help before you make a mess, easier to dig you out of a small hole. Thats what they are there for. Will be more expensive if you get it wrong, not just in their fees.
Hi Doug, hope you're keeping well.
I thought the same, but a bit of googling comes up with this https://www.ebay.co.uk/help/listings/default/vat-obligations-uk-eu?id=4650 Look at the first question under frequently asked questions.
Hi John, all good here thanks, how's things with you?
The link you posted was for sales to the EU, the OP didn't mention that they were foreign sales so I assumed they were UK sales, even more reason to get the Company accountant involved as VAT rules in the UK are complicated enough and foreign VAT even more so.
Cheers