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VAT ISSUE FOR USA SELLER UK BASED COMPANY OVER 90K GBP
Summary: floridatopratedseller, a UK-based company selling in the US, is seeking advice regarding VAT registration. They mention that according to HMRC, they are exempt from VAT since they sell outside the UK, yet eBay is requiring VAT registration. They inquired if switching their eBay account to a different company can help avoid this VAT registration requirement. lady_madonna advises that VAT registration is based on turnover threshold, and creating a new account to avoid taxes is illegal. comics-scifi-collectibles suggests reaching out to the eBay UK community for guidance, as VAT is not typically dealt with in the US.
Greetings, I am a UK-based company but I sell in the US.
Therefore, according to HMRC (the UK tax authority), I am exempt from VAT, and I haven't registered for VAT. However, eBay is requesting VAT registration. I spoke with HMRC, and they said it's not necessary for them, but I can register if I want, although the process might take more than 3-4 months.
Therefore, registering for VAT seems illogical because this year is almost over, and since the tax will be zero in the new year, we don't want to register.
Does this tax situation apply to the last 12 months or from the beginning of each year? That's my first question.
But my second main question is this:
If I switch my eBay account to a different company, the VAT will be zeroed because my bank account, company information, and company owner will change. I want to link and change my eBay account to a newly opened company. This is possible, but can we do this to avoid eBay's VAT requirement?
We await your response. Please investigate this matter thoroughly and provide information, as I am a major salesperson and employ several people whom I pay salaries to. If I cannot pay them, their families will face hardship.
Thank you.
comics-scifi-collectibles
Mentor3 months ago@floridatopratedseller Since this IS VAT related, which we do not deal with here in the US, I recommend asking your question on the eBay UK community, especially since you are registered as a UK business seller>
You can connect with fellow buyers and sellers on the eBay UK Community pages> https://community.ebay.co.uk/
lady_madonna
Mentor3 months agoIf your annual turnover exceeds a specific threshold you are required to register for VAT.
https://www.ebay.com/help/selling/selling/vat-obligations-eu?id=4650
You cannot create a new account to avoid paying taxes. Tax evasion is a crime.
floridatopratedseller
OP3 months agoIm not sale on UK