Ebay Strikes Again - Being asked to declare my account personal or business - HotUKDeals
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Ebay Strikes Again - Being asked to declare my account personal or business

IWannaBeAdored Avatar
8y, 9m agoPosted 8 years, 9 months ago
Apologies if this has been posted, but I did a search and found nothing:

Got the following e-mail from Ebay today:

"We are contacting you to confirm your account type. Our records show that your account type is currently undefined, because you originally registered on eBay before 2006. Please confirm, before 30 April 2008, if you use your eBay account for personal purposes or for business trading.

E-Commerce is governed by laws which lay down the obligations of sellers and rights of buyers. These laws apply to all internet trading including activity on eBay, but the details vary depending on whether the seller is operating as a private individual or as a business.

If you do not confirm your account type by 30 April 2008, please note that you will be unable to sell on eBay until you complete the confirmation.


Choose a private account if you:

sell items that belong to you and that you do not need anymore
buy things for your personal use

Choose a business account if you do any of the following:

sell items that you have bought to resell
make items yourself and sell them, intending to make a profit
are a trading assistant
buy items for your business "

Anyone else had this? What are the taxman implications for us entrepreneurs?
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IWannaBeAdored Avatar
8y, 9m agoPosted 8 years, 9 months ago
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banned#1
yeah just had mine too, well if its a business then you should be declaring it, thought that would be pretty obvious really:?
#2
Yup i got this as well, confirmed i am a private seller, which i am!
#3
Probably so they can:
A) Say "we have x amount of business sellers"
B) Help the taxman in their search for people who are business sellers and not paying tax
#4
Hate ebay!
#5
I thought this just applied to powersellers? If it applies to everyone, that's even better.
#6
Any tax experts around with the two examples:

First example:

So what happens if you buy 3 of the same item and sell the other two to cover the cost of the three items paid for (essentially getting the item free)?

Another example:

You buy 10 Wii's to make a profit on. You buy 10 for £180 each of your own cash and sell for all 10 for £250. What amount is declared as £2500 will show on your Ebay account? You have to also pay Paypal and Ebay listing and final value fees for every one that is sold.
banned#7
IWannaBeAdored
Any tax experts around with the two examples:

First example:

So what happens if you buy 3 of the same item and sell the other two to cover the cost of the three items paid for (essentially getting the item free)?

Another example:

You buy 10 Wii's to make a profit on. You buy 10 for £180 each of your own cash and sell for all 10 for £250. What amount is declared as £2500 will show on your Ebay account? You have to also pay Paypal and Ebay listing and final value fees for every one that is sold.


it doesnt quite work like that, firstly you either open a business or a privaye account, if you go for the first then it need to be declared to the taxman as a business, if you go for the second then you are saying you are basically selling off bits and bobs, not 10 wii's or 5 brand new whatevers
#8
IWannaBeAdored
Any tax experts around with the two examples:


I am not an expert, so you should always check with one first, but from what I understand:.

So what happens if you buy 3 of the same item and sell the other two to cover the cost of the three items paid for (essentially getting the item free)?


You are buying them in order to sell, in which case they should be declared.

You buy 10 Wii's to make a profit on. You buy 10 for £180 each of your own cash and sell for all 10 for £250. What amount is declared as £2500 will show on your Ebay account? You have to also pay Paypal and Ebay listing and final value fees for every one that is sold.


You pay tax on any profits you make, so you need to submit details of your accounts which listt things like the original cost of the item, how much it sold for, paypal/ebay fees, shipping, profit, etc.
#9
Titchimp
Probably so they can:
A) Say "we have x amount of business sellers"
B) Help the taxman in their search for people who are business sellers and not paying tax


This is all part of their new rule changes and drive to make eBay a more professional marketplace.

It means that they can wash their hands of needing to get involved with disputes, becasue any professional seller must comply with the Distance Selling Regulations.

It also gets the governments off their backs with regards to tax evaders/dodgy sellers.
#10
The reason for the difference is simple. If you are are a business you must adhere to the Distance Selling Regulations. If you are a private trader you don't.

A buyer needs to know whether the seller is a valid business or not. Otherwise you could have the situation of someone selling something, and refusing to accept it back (as they must do under the DSRs) if the buyer wishes to return it. This is a critical part of the development of the on line trading environment to give buyers the confidence to continue to buy on line. If someone on eBay says they are are a business, but refuses to accept returns the buyer would not be too happy.

By forcing this distinction (which is very important) eBay (or rather PayPal) can refund the buyer if the seller refuses to comply. If the seller states they are a private seller this will have to be clearly stated, but it will frighten off a lot of buyers because of the reduced protection.

As always, you pays your money...

Sellers have always seemed to get a raw deal out of PayPal -- and this is because ultimately if you frighten off buyers there is no market. And with any business no customers means no business. So it's nothing to do with eBay, nor with HMRC. But to comply with the DSRs (which are, in fact, an excellent example of how the EU is of benefit to the UK -- the DSRs have been implemented to comply with a European Directive).

So now you know!

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