eBay is charging an incorrect VAT tax rate on Historical Car Parts

[rw_auto_classics]

Hi we sell antique car parts internationally that fall under the HS code 9705000090. The incorrect tax rate is being applied by eBay. For example: The VAT rate in the UK for this is HS code is 5%. However when we sell on eBay it is automatically charging 20%. And on a secondary issue our shipping company Fedex is also trying to collect VAT.

Here are the details:

We ship internationally using Fedex, which is much cheaper and more reliable than the post office (USPS) or eBay Standard International. 

We have many varying box sizes as we sell every type of car part that you can find on a car.

When listing items we have to use USPS or eBay Standard International in order to provide a calculated rate. We would lose a lot of money using a flat rate option.

eBay tells us that because we use one of these shipping options in the listing they automatically charge the VAT and pay for it on our behalf.

Apparently if we add this IOSS code IM2760000742 to the commercial invoice they won't charge twice. I've yet to try this code.

Does anyone know if this is the correct code and is there a way to have eBay change the rate?

THANK YOU!

[fab_finds4u]

9705 0000 90 is code for  collections and collectors' pieces of zoological, botanical, mineralogical, anatomical,  historical, archeological, palaeontological, ethnographic,  or numismatic interest. Standard VAT 20%.

Historical is not the description of a car part. 

A vehicle is 5%. 

8708 not 9705 is for vehicle parts. Mass produced parts is Standard VAT 20%

You should be shipping parts by USPS because FedEx charges a broker fee in addition to the shipping for International deliveries.  

[rw_auto_classics]

Hi fab_finds4u. Thank you for the reply. I do understand that new or recent car parts should fall under a different category, but what we sell are collector historical car parts and also collector historical cars (which would fall in the 5% range without being historical or collector).

An example of a car, and parts, that we sell commonly is a 1961-1975 Jaguar XKE. In Washington State any car over 30 years of age and driven primarily as a collector vehicle can be registered as a Collector vehicle. So shouldn't the parts be considered as collector parts? And as far as history goes, this particular car has a large presence in automotive history. 

Another point to consider is that when posting our items, there is a special eBay category for "vintage" car parts. It alludes to being historical or old at least. What are your thoughts?

Thanks Again, appreciate the conversation on this topic.

[amphicyon-major]

hello

9705.00.0090 is 5.5% VAt in EUrope. Ebay is stealing all the collectors by charging 20%.

They will be charged by customs for stealing 14.5% to EU on all collectors items !!

[6al_4v]

@rw_auto_classics 

 8708 is the correct HS code for Vintage Auto Parts..... 

The VAT is 20% and higher... some now 21% to 27%.....

The discussion the parts are Historical  sounds fun but isn't gonna change the VAT sadly as the tax man has it all covered....

 

+1 on using USPS too! 

As a Seller, FedEx has been working good for you but has it been working good for your Buyers?  

FedEx does cost more but if your international Buyers are happy then that's the important thing....but getting charged twice on VAT fees would only steer me back to my fav... USPS...