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 Amazon & eBay sellers' VAT fraud rife despite crackdown


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HOLA441
36 minutes ago, billy budd said:

For now you are...but if you get investigated they can go back 3 years to reclaim unpaid Import VAT/Import Duty.

Don't make the mistake of thinking you're too small for them to worry about - they like picking on the little guy.

surely the issue is the person declaring on the customs forms ? i.e the seller

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HOLA442
15 hours ago, longgone said:

surely the issue is the person declaring on the customs forms ? i.e the seller

No - the importer is responsible for ensuring that the description and value of the goods is accurate:

https://www.gov.uk/goods-sent-from-abroad

I've been importing from the USA for over 20 years and a few years ago HMRC discovered a couple of errors in the way that my main supplier had been classifying the items - the result was a six figure demand for payment (most of which was VAT that was then reclaimable, but I had to pay it first).

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HOLA443
41 minutes ago, billy budd said:

No - the importer is responsible for ensuring that the description and value of the goods is accurate:

https://www.gov.uk/goods-sent-from-abroad

I've been importing from the USA for over 20 years and a few years ago HMRC discovered a couple of errors in the way that my main supplier had been classifying the items - the result was a six figure demand for payment (most of which was VAT that was then reclaimable, but I had to pay it first).

wow 6 figures, in that case high value stuff may be the exception. maybe they turn a blind eye to small chinese packets.  in my experience though anything through the regular post is never charged but anything from DHL does. They charge admin fees even if them item is $1. i find parcelforce is the most expensive for admin fees after ordering some motherboards from Miami. 

 

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  • 1 month later...
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HOLA446

 DON’T BE TOO HARD ON US MULTINATIONALS (Like Amazon): TREASURY TO HMRC https://waitingfortax.com/2018/01/23/dont-be-too-hard-on-us-multinational-treasury-to-hmrc/

 Whitehall IT chief ignored rules to take Amazon job

https://www.thetimes.co.uk/article/whitehall-it-chief-driskell-joined-amazon-after-work-on-deal-s8qwlmz30 

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HOLA447

It’s smoke & mirrors. eBay still allowing sellers to use invalid VAT, numbers, made up company names, pretend they are UK sellers. This seller was reported to HMRC years ago & they are still trading. What hope do we have - bunch of idiots the lot of them

https://www.

https://twitter.com/dextersdoghouse/status/958292476846059522 

Edited by Saving For a Space Ship
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 eBay Issues Tax Warning to UK Sellers

https://www.ecommercebytes.com/2018/01/31/ebay-issues-tax-warning-uk-sellers/

Quote

eBay issued a warning to UK sellers advising them to comply with Value Added Tax (VAT) obligations. The company said it works with the country’s tax agency HMRC on preventing tax evasion, and said it would take action against sellers who are non-compliant.

Announcement follows:

Important tax reminder: Your Value Added Tax (VAT) obligations

If you are running a business selling on ebay.co.uk it’s important to check you are complying with your Value Added Tax (VAT) obligations. Depending on where you or your goods are located and the size of your business, VAT rules may apply to you.

VAT is complex and there are quirks, for example when selling used goods. We recommend that you seek advice from an accountant, but here are some starter tips:

Sponsored Link
 

If your business is located in the UK and sells goods to UK customers and your total UK located sales are above £85,000 per annum, you must:

– register with the UK tax authority (HMRC), and

– display your VAT ID on your eBay listings; and

– collect VAT, and

– report your collected VAT by completing a tax return with HMRC.

If you are located overseas and forward deploy inventory to the UK, no threshold applies and you must immediately register for VAT.

If you ship to, or forward locate inventory in other EU states you may also have to register for and pay VAT in those countries as well.

Please visit the eBay seller centre for additional resources and information.

You can also visit this link for information from HMRC on how to register.

eBay continues to work with HMRC to prevent tax evasion and will take action against those who don’t comply with the law, including selling blocks.

Thank you for selling with us.

SOURCE: eBay UK Announcement

 

Edited by Saving For a Space Ship
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HOLA4410

  HMRC accused of ignoring online VAT fraud worth £1.2bn a year  

Campaigners say no rogue traders have been prosecuted for selling wares on Amazon and eBay without VAT

https://www.theguardian.com/politics/2018/may/06/hmrc-accused-of-ignoring-online-vat-worth-12bn-a-year

Quote

..The accusation comes after a senior HMRC official said last week that his department had never seized goods from traders suspected of being part of a £1.2bn-a-year VAT fraud via Amazon’s marketplace and other online sites.

The scam involves foreign companies warehousing products in the UK and selling them without charging VAT via internet marketplaces.

 
 

Legitimate traders claim the scam gives the fraudsters an unfair advantage.

Richard Allen, the founder of Retailers Against VAT Abuse Schemes (RAVAS), said: “HMRC was handed a dossier containing the names and details of hundreds of fraudsters three years ago. 

“Yet in that entire period, despite serious and criminal fraud taking place by traders using Amazon warehouses, HMRC has not made a single prosecution or seized goods when it has identified rogue operators.

“When measured against the actions of other jurisdictions such as Germany – who have taken enforcement action – or even simple common sense, HMRC’s behaviour can be seen as nothing other than going lenient on Amazon rogue traders.”

The chancellor took measures last year to tighten up 2016 legislation designed to force companies such as Amazon and eBay to police their own site for VAT fraudsters. Websites are now jointly liable for ensuring companies selling goods to UK consumers via their websites are paying the correct VAT.

But last week, during a public accounts committee hearing, the chair, Meg Hillier MP, said to HMRC’s deputy chief executive, Jim Harra: “According to Amazon … they said ‘to our knowledge HMRC has never issued a notice to Amazon to seize the third-party goods belonging to a seller in respect of whom they have issued a joint and several liability notice.’”..

 

Edited by Saving For a Space Ship
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HOLA4413

 German Tax Office caught a Chinese seller on http://Amazon.de who made sales of €45,000,000 without paying VAT.

Seller lives in Germany so was arrested & faces prison sentence.

@EU_Taxud should make all NO EU sellers appoint VAT representatives to stamp out VAT Fraud

https://twitter.com/vatfraud/status/1063392020440461312

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HOLA4414
On 16/11/2018 at 11:35, Saving For a Space Ship said:

 German Tax Office caught a Chinese seller on http://Amazon.de who made sales of €45,000,000 without paying VAT.

Seller lives in Germany so was arrested & faces prison sentence.

@EU_Taxud should make all NO EU sellers appoint VAT representatives to stamp out VAT Fraud

https://twitter.com/vatfraud/status/1063392020440461312

did you have anymore info on this Chinese, asking for a friend.

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Amazon and ebay are rife with Chinese sellers - try looking for a bath tap and not running into one.

Some have VAT numbers, who knows if they’re real. Very frustrating when you want a UK seller with UK stock and end up buying from a lying Chinese con job who’ll send you a dodgy item from Guangzhou (21 days shipping) and if you want to return it shipping costs £100.

Don’t get me started on their dangerous non-earthed electrical plugs. *foams at mouth*

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HOLA4417
24 minutes ago, PeanutButter said:

Amazon and ebay are rife with Chinese sellers - try looking for a bath tap and not running into one.

Some have VAT numbers, who knows if they’re real. Very frustrating when you want a UK seller with UK stock and end up buying from a lying Chinese con job who’ll send you a dodgy item from Guangzhou (21 days shipping) and if you want to return it shipping costs £100.

Don’t get me started on their dangerous non-earthed electrical plugs. *foams at mouth*

Check a VAT number (VIES) at...

https://europa.eu/youreurope/business/taxation/vat/check-vat-number-vies/index_en.htm

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HOLA4418
13 hours ago, prozac said:

did you have anymore info on this Chinese, asking for a friend.

In case the link did not come out (chrome browser needed for translation ) 

see here  https://mjzj.com/article/39631

Also...

'I predict one day Amazon will fail. Amazon will go bankrupt': Jeff Bezos makes surprise admission about Amazon's life span

http://www.uk.businessinsider.com/jeff-bezos-says-amazon-will-fail-one-day-2018-11

From...https://twitter.com/vatfraud?lang=en

Edited by Saving For a Space Ship
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HOLA4421
22 hours ago, fru-gal said:

Do you actually receive goods sent from China? I order stuff from there and half of it doesn't turn up or is the wrong thing and I just get a refund from Paypal as they don't send it tracked. 

Yes, the first couple of times I got duped, the tat arrived after a month or so. There are regular complaints on ebay and amazon seller forums about tax free chinese sellers listing goods as in the uk and then shipping them from china, then telling people to return them to china if they don’t work or want a refund.

On 18/11/2018 at 09:14, Saving For a Space Ship said:

Did check a couple times. Can’t be bothered now. I just want items sold in UK to UK buyers to all be kite marked or otherwise safe/checked and have the appropriate tax paid. 

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HOLA4425
44 minutes ago, Ash4781 said:

https://www.bbc.co.uk/news/business-46838687

Really light on the news on this crackdrown. Maybe it’s on the hmrc news feed and an update that they have collected £200mn 

Good. About bleddy time. Wonder how many UK sellers have gone to the ropes after being undercut time and again. 

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