EBAY to start collecting VAT for EU
jmlanzaf
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I'm sure many of you got the email. They've been doing it for the UK, but now the test of the EU will have ebay collect the VAT.
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Not surprising. How long before US sees such a federal sales tax.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Is there a VAT on coins?
There is in the UK, so I assume there is in the EU. They are collectibles.
UK had a VAT when I lived there in the mid 70's. VAT was and I imagine still is like a federal sales tax.
No Way Out: Stimulus and Money Printing Are the Only Path Left
I kind of wish they would institute one and replace income tax with it. It would also simplify things if they had a federal internet sales tax rather than individual states.
Until they get their central bank digital currencies up and running where they can throttle spending with negative rates on account balances, it wouldn't be to their advantage. Federal sales tax/VAT money generation is heavily dependent on velocity of money (consumer spending).
No Way Out: Stimulus and Money Printing Are the Only Path Left
I posted about this a few months ago . They started with the UK around then!
Taxes, taxes, taxes, nowhere but UP in the US.
You get what you vote for.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
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Yes, this was discussed earlier. eBay just sent out the email with the July start date. From the email:
"Important changes to VAT (value added tax) regulations will go into effect starting in July 2021. These changes will affect all sellers trading to or within the European Union.
Starting July 1, eBay will be required to collect and remit VAT on orders up to a value of €150 imported into the EU and sold to consumers. There will no longer be a VAT exemption for small shipments up to €22. For shipments over €150, the buyer will be charged VAT following arrival of the goods in the country of delivery.
Keep reading for a summary of what you need to know. You can find full details about all changes on our help page."
I wish governments were as creative for saving money as they are for creating taxes.
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They're going to make a big mess out of this. VAT rules for coins are rather complex and vary from country to country. In some cases, only part of the sale is subject to VAT.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
So how do you answer the folks across the pond complaining about the taxes? They are just like us and feel they are getting screwed.
Personally I advocate for fair trade. I tell them if you were selling this to me I would not have to pay taxes on it! That is not fair trade!
Does this address that:
About margin schemes
Business sellers are eligible to use the VAT margin schemes when they are selling the following products:
Second-hand goods
Works of art
Antiques
Collectors' items
However, under EU and UK rules, where eBay has VAT collection obligations, eBay cannot legally apply margin schemes for those products. Where eBay is obliged to collect VAT on these types of items, eBay will collect VAT on the full value at the appropriate rate to the items.
So are U.S. buyers going to have to pay for VAT if they purchase overseas?
I don't think that's legal. Like sales tax, I think the location of the buyer determines who has taxing jurisdiction.
I'm curious if ebay is collecting local sales tax here on international purchases.
Should depend on state law, should it not?
On Selling policy pages:
https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121
Once eBay starts to collect tax in the above states, no action is required on your part, and there will be no charges or fees for eBay automatically calculating, collecting and remitting sales tax. The collection process will apply to all sales, whether the seller is located in or outside of the United States.
The EU doesn't mess around on US company compliance. Ask Microsoft and Amazon.