VAT charged on UK to UK orders

[magdalenaruiz]

VAT is added on all of my UK orders, it has never happened before. I am not VAT registered. It is also adding VAT on orders In EU unless they are over £135

Customer support has been useless, cannot call them and the chat that supposed to have 1min response time gets stuck on bot reply...

I have contacted them by email still waiting. 

In the meantime I am writing to all my UK customers to request a refund from Etsy for incorrectly charged tax. 

Anybody with the same problem? 

Cheers

[CraftyCornishMaids]

Orders under 150 euros, (approx £135) sent from UK to EU should have VAT added and collected by etsy, and they will not be collected again on import, as long as you ensure the IOSS number is submitted electronically via the label, and your invoice on the outside is in their currency, with amount of VAT paid, and etsy's IOSS number.

Not sure why your UK-UK orders have VAT added - who knows what causes etsy glitches
I would try creating a new shipping profile and use that 

[magdalenaruiz]

I will try that , thank you. 

regarding VAT collection on import, I had several incidents in Germany and France where despite several notes and IOSS sticker on the package stating that tax has been collected, the buyer was forced to pay in again

[CraftyCornishMaids]

@magdalenaruiz 

Did you have an actual invoice in a see through document wallet on the outside, in Euros

... It is an international requirement for an invoice in local currency, - some countries didn't and don't enforce it very often,

But since IOSS, France and Germany are definitely enforcing it more, and without the invoice, showing vat paid and the number, they often charge again ., you can get the info in euros from the packing slip

[CappuccinoLace]

https://community.etsy.com/t5/Technical-Issues/VAT-BUG/m-p/145309314/highlight/true#M844941

Was your shop originally set up in the UK, or have you moved from another country to the UK?

It appears to be etsy actually enforcing the actual law

https://community.etsy.com/t5/Technical-Issues/Different-prices-showing/m-p/145341413/highlight/true...

[FancyTogs]

Etsy have been required to collect VAT on UK to UK sales by non-UK sellers since 2021. It looks like they have finally started to do it.

I have seen a couple of forum reports of VAT on UK-UK sales by "UK" sellers who have a non-UK country setting remaining within their shop or user profile, usually after they have moved between countries.

Check that your country settings in your addresses, tax details, bank account, etc are all UK.

Lawrence (Clare's other half)

[magdalenaruiz]

thank you so much for that! This is very helpful. My shop was registered in the UK initially but I moved to Spain for a few years and changed my bank account. When I returned to the UK, due to Brexit I was unable to change my bank account to a UK one, I would have to open another shop and start all over again, which did not make any sense. 

I will go through all my settings and check again. 

thank you!

[CraftyCornishMaids]

@magdalenaruiz 

If you are a Spanish bank account, didn't you have to give your Spanish VAT ID to etsy?

[magdalenaruiz]

No, I do not have Spanish Vat, I live and work in the UK, the account change is not possible after Brexit so had to keep it. 

[magdalenaruiz]

Thought I will update it, might help somebody, I do not believe I am the only one with this problem. 

At this moment etsy charges VAT on UK orders AND!!! on EU orders purchased from my shop.  Still waiting for them to respond...

[clocksandprints]

I have the same problem, e-mailed them, all you get is a standardised e-mail back and no solution

Richard

clockdandprints

[magdalenaruiz]

I have not had a response to my email but got on the chat and was told to contact my customers and advise them to request a refund. Apparently they are looking into this