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Does a seller have to be a cheater to succeed on ebay?

Hello,

I have been bringing up this topic again and again on the site.

Why are seller being allowed to charged excessive VAT?

VAT / CST rate on computers and IT products is just 4% and most sellers are charing 12.5%

Similar is the case in many other categories.

Many sellers charge vat in their listings but are not registered dealers and if they are registered dealers they do now show their ebay sales in their tax returns.

So, it seems you need to cheat customers to make a sale on ebay. In order to attract buyers, you need to keep your offer price lowest but charge excessive vat ans s&h.

Is there going to be a solution to this or am I just banging my head against a wall?

Devesh
Message 1 of 23
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22 REPLIES 22

Does a seller have to be a cheater to succeed on ebay?

Hi!

Sellers who try to keep excessive VAT keep the prices lower and get their listings above sellers who do not charge VAT.

You can see genuine sellers writing โ€œNo Hidden Tax Or Vatโ€ by taking subtitle options. It means that the sellers cheating get it for free. And the sellers who are genuine have to spend behind subtitle to show that they are genuine.

There are some items for which dealers do not get bill while they purchase and do not give bill when they sell. But still you can see that they are charging VAT.

Regards
Shuaib
Regards
Shuaib
Aafsaa.com
Message 2 of 23
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Does a seller have to be a cheater to succeed on ebay?

assemblerz
Community Member
I have raised this issue n number of times but there is no response from ebay. It really matters for our sales. Some sellers are really using this VAT loophole for their own benifit.
They charge 12.5 % for IT products???
The actual VAT is 4%

How can we survive in this scenerio?
Our buyers are not aware to judge which is a real invoice and which is a fake invoice. So those sellers fool the buyers and our government.

Ebay should block the sellers and not allow them to charge VAT till their KYC is done. Ebay always says that its responsibility of seller to face sales tax authorities. But doing this they cannot was shy away with the real fact they ebay is running this platform and need to clean it rather than allowing sales tax office to to it.
I give you example:
Genuine seller:
A product costing 5000 , sold are Rs. 5800+ 200 = 6000
He charges VAT at 4% = Rs. 240
Total selling price = Rs. 6240

Fake seller:
A product costing 5000 sold are Rs. 5500+ 200 = 5700
He charges VAT at 12.5% - Rs. 712.50
Total selling price = Rs. 6412.50

A buyer will not reliase that he is actually paying more. He will think that the price is low of the fake seller and will buy it. To add to it he will get a fake invoice. So buyer and our Govt are cheated. Plus the buyer will not get genuine invoice. This will also lead to selling grey market products.

If ebay wants to sell genuine products they should share equal responsibility in verifying its seller credentials.

I do not want to say more as enough is already said since years.
Message 3 of 23
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Does a seller have to be a cheater to succeed on ebay?

selling24x7
Community Member
Hi devesh,

We have has the issue discussed over and over again. All other ecommerce sites (Rediff, Indiatimes)were swift to ensure that the buyer experience is good. They have tackled the excessive shipping issue well and kept the process simple and easy to follow.

But in eBay's dictionary Buyer Experience is only about ensuring that the product is delivered (with a Sword over the sellers head) >READ: Paisa Pay / TnS<.

What happens here is a few handful sellers start a trend and others follow them to remain competitive.

I feel the time frame suggested by Mr Mehra still allows eBay another week to resolve the issue, lets hope for the best!

Regards
Message 4 of 23
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Does a seller have to be a cheater to succeed on ebay?

selling24x7
Community Member
Hi devesh,

We have has the issue discussed over and over again. All other ecommerce sites (Rediff, Indiatimes)were swift to ensure that the buyer experience is good. They have tackled the excessive shipping issue well and kept the process simple and easy to follow.

But in eBay's dictionary Buyer Experience is only about ensuring that the product is delivered (with a Sword over the sellers head) >READ: Paisa Pay / TnS<.

What happens here is a few handful sellers start a trend and others follow them to remain competitive.

I feel the time frame suggested by Mr Mehra still allows eBay another week to resolve the issue, lets hope for the best!

Regards
Message 5 of 23
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Does a seller have to be a cheater to succeed on ebay?

assemblerz
Community Member
Dear Indraneel,
You are visiting all posts and posting goodies except this post!

There are handful genuine sellers here, so only those have raised this alarm. I have seen reputed sellers over 1500 feedbacks change their strategy and have started charging 12.5% instead of 4% VAT to stay competitive. Is this silence a message to do go ahead with the cheating?
We are here to serve buyers with best price and genuine product with warranty etc. But cheaters here are at huge profit due to eBay silence. Also only computer product sellersโ€™ seems to be facing this problem as itโ€™s the most organised industry in terms of VAT implementations. All the complaints of VAT have come from genuine sellers who are selling computer components.

Please help Indraneel.
Message 6 of 23
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Does a seller have to be a cheater to succeed on ebay?

cochinmall
Community Member
It is bad to see that many sellers are using 12.5% as the tax amount for selling various amounts.My account was hacked by trojans a month back and they were kicked out recently.Was one hell of a job... :_|

Anyways,I dont know what items are entitled for 12.5% tax.But since the tax percentage entered in the slab accounts for all the products which sellers sell online,problems occur when electronic items are sold.The sales taxes option should be cleared off so that the items can be sold inclusive of taxes.Such a provision should be provided from ebay.

Regards
Rahul
cochinmall
Message 7 of 23
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Does a seller have to be a cheater to succeed on ebay?

snrama
Community Member
Hi,

Yes, there are many sellers charging 12.5% instead of 4% on Computer and IT Products.

Its better to include VAT charges with product price itself (as I do). This makes the customers the clear view on the total cost.

But some sellers who sell at low price and charge more than 4 percent makes genuine sellers to sell their products. ---------------
With Regards,
Navaneeth (snrama) ๐Ÿ˜‰
---------------
With Regards,
Navaneeth (snrama) ๐Ÿ˜‰
Message 8 of 23
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Does a seller have to be a cheater to succeed on ebay?

indraneel@ebay.com
Community Member
Hello Devesh (veedeedirect),

We appreciate your consistent efforts in getting the fix done around this issue.

We know you would believe us when we say we are working towards it and we should soon get some updates on this issue.

However to highlight your efforts I've reported this issue to the concerned team and we will surely update this thread.

On a side note its always great to interact with a community member like you with so much passion for eBay and welfare of the community ๐Ÿ™‚

Regards,
Indraneel
Message 9 of 23
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Does a seller have to be a cheater to succeed on ebay?

deuri_in1
Community Member
Basically all auction seller are cheater.They are waiting for doubling the price for gullible customer,otherwise they don't sell.My recent personal experience is that I won one item through auction and paid thro paisa pay, then seller said product is not available.Probably seller coul not fleece me profusely
Message 10 of 23
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