PRIVATE sellers carry out production and sales, eBay lets them sell.
Good morning everyone,
Recently I realized that various private sellers on ebay are manufacturing and selling some products that we also have. Up to this point no problem, except that private sellers have ebay’s reduced taxation, don’t pay VAT to the state, and can afford to dump the products they have at ridiculously low prices, all of which is illegal in Italy without a VAT number.
I’ve already reported several of these sellers to ebay but no action has ever been taken. If private sellers matched professional sellers on prices there wouldn’t be any problems, live and let live, but by taking advantage of the fact that they’re evading taxes, they significantly kill the market.
What would you recommend?
Thanks everyone
10 comments
mocer-75
·1 year agoAs you say, right now it's an unknown both the effects of DAC7 and the timing of the ADE, bearing in mind that for tax checks they take all the time they have available...
heavenwelkin
·1 year agoquoted from a website:
In recent years, the European Union has increasingly dealt with issues related to 3D printing and additive manufacturing, highlighting the need for harmonized and specific regulation among the countries of the European Union that clarifies the boundaries of protection for the creations that arise from it. Yet, to date, this gap has not yet been filled, creating uncertainty among manufacturers and consumers.
If a private individual prints the window motor gear at home and then puts it on eBay, that’s fine as long as it’s limited sales.
eBay does not prohibit a private individual from doing this; after all, 3D printers are now widespread in the home.
If the private individual starts to scale up and invoice, then eBay steps in, asking for invoices and inviting them to switch to a professional account.
If you find yourself in a situation where there are several private sellers selling parts reproduced with 3D printing at lower prices, you can report them, but basically you have to live with it.
Best regards.
secretuniversesrls
OP1 year agoI understand, but let’s say that producing and selling 300 products is no longer an occasional sale. Furthermore, the law allows private individuals to occasionally sell items, if they were not previously bought and/or produced for profit. Otherwise, a VAT number is required.
I don’t understand why eBay allows these private individuals to sell 200 pieces of a single listing without any oversight. Furthermore, even when reported, no kind of action has been taken.
heavenwelkin
·1 year ago200 pieces at 10 euros is 2000 euros, at 15 euros it's 3000 euros
After taking away the costs for materials and everything else, the profit shrinks....
eBay has algorithms that trigger alarms when a private seller exceeds certain tolerance thresholds.
eBay offers private individuals 150 free auctions per month
A private seller could also have 1000 items for sale but sell little or nothing.
eBay certainly evaluates the quantity and frequency of items sold per month and how much the monthly sales amount to.
Then it evaluates how many new items are sold compared to used ones
The product category
Etc etc, these are fairly complex algorithms that only industry insiders know in detail.
In any case, one could object to the fact that a private individual SHOULD NOT have a fixed storefront available online 24/7 because it is comparable to a shop/virtual showcase but..... the rules are set by eBay, including what private individuals can or cannot do on its platform.
secretuniversesrls
OP1 year agoFirst seller: 1,400 items sold - private, about 2,000 a month.
Second seller: 840 items sold - private, about 1,000 euros a month.
As for profit margins, I assure you the margin does get thinner, but only a little. Since they don't have to pay 22% VAT, 24% tax on revenue, they can afford to sell for MUCH less, and the end customer obviously doesn't care.
I'm not talking about whether they have a fixed storefront or not, they could resell old Topolino comics and that would be fine, but eBay should protect us sellers with companies, and these tax dodgers should at least open a flat-rate scheme, so they'd have to pay VAT and 5% in taxes.
heavenwelkin
·1 year agoYes, there are cases of sellers who reach significant figures but are not affected by any action from the platform.
I remember an antique book seller who had lots of pieces priced at even 2000 euros a book, and it seems we were talking about something like 12,000 euros a month in items sold as a private seller....
There are sellers who are flagged by ebay almost immediately and other sellers who are not affected by any action.
This depends on how they have set the thresholds based on a wide range of parameters unknown to us.
Recently ebay has exponentially increased the sales limits for private sellers or at least it has done so for some of them.
Surely this is due to the DAC7 issue, for which ebay, once the data on the threshold being exceeded has been communicated, should consider itself no longer responsible for how many items a private seller sells annually.
So it COULD happen that the increase in sales thresholds leads to many more items being put up for sale by private sellers, with the consequent increase in profits.
We'll see whether this DAC7 will produce any appreciable results....
We'll have to wait and see........
secretuniversesrls
OP1 year agoAnyone selling significant amounts - especially if it's over 2000 euros a year now that this DAC7 comes into play - and has a couple of brain cells should aim to get compliant and not wait for Equitalia's green letter. In any case, I don't care if these people spend their lives paying off promissory notes, and in part I'd feel sorry, but at least they should adapt to market prices like other sellers are doing, us included.
I fully understand eBay's move, at the end of the day, profits matter, and by washing their hands of it since they work with the AdE they can leave private sellers to dig their own graves.
Anyway, amid groans and curses, if this DAC7 enters the game soon, which I doubt with our bureaucracy, we'll see various sellers disappear 😕
sika700
·1 year agoGood morning,
unfortunately, aside from reporting them, nothing can be done... since they are private, no name appears that would allow a complaint to be filed with the appropriate authorities.
It is hoped that this so-called DAC7 regulation will produce results in tracking down the offenders and hammering them as they deserve... but it will take time... a lot of time.
Kind regards.
wallyd_34
·1 year agoHere's another user who in the gallery shows up as a private seller while in the details they're a professional... I'd say the bug is confirmed. But who does the software testing on eBay??
secretuniversesrls
OP1 year agoIt's a bug that eBay is well aware of... they've added us to the list of "those who appear to be private but are professional," no date on when it will be fixed