eBay Sellers Alert
If you go over the VAT turnover limit be aware that eBay may freeze your deals. HMRC seem to have ‘encouraged’ eBay to act as traffic policeman, bringing movement to a sudden halt unless you can provide a VAT registration number. eBay seem to track transaction levels over the most recent rolling twelve-month period, as the VAT rules require, then to issue a warning if the level goes over the £85,000 threshold. Fail to provide a valid VAT number and the account is frozen.
If the next rolling total falls below £85,000 the block may disappear, as happened in one of our cases, which was a relief. This automatic block can have the same impact as being pulled over for speeding – it’s a shock, and you may be fined, so keep a close eye on your speedometer! And that’s advice for all traders, not just e-traders. Get in touch if you need help.