VAT Problems for Sellers

I am raising this again because it is still not being addressed. I opened a support ticket in October 2017 and after some correspondence I received this:

"Your case has not been ignored, on the contrary, it has been escalated to our Legal Team.

They have informed me that your points are valid and that they are looking into it so that they can implement the best possible solution."

I can't find any evidence that anything has actually changed.

As a VAT registered seller I face the following problems.

1. I do not know the identity, location, or VAT status of a potential buyer. I need this information before I can submit a bid, but I don't even have it after completing the project. You show a country for the buyer when the project is posted but this is inaccurate and cannot be verified by the seller. I am aware that are numerous posts in the forum from people who are listed at the wrong location.

If you want to insist that you are introducing the buyer to the seller and charging a service fee for this, you have to actually introduce the buyer to the seller. As a VAT registered seller I cannot legally provide remote services to an anonymous buyer from an unknown location. Perhaps you can explain why PPH are not the employer in this situation and why they do not occupy the place in the supply chain between the buyer and the seller.

2. The bidding process does not allow for VAT to be itemised. This is a major issue when the location indicates that I should be charging VAT but the buyer has set the project budget. For example, I recently completed a project where the buyer had set a budget of £100. It was clearly a commercial project and may have been from a VAT registered buyer, although that is speculation based on the work and the price. I still don't know who they were. My invoice becomes £83.33 + VAT. Another freelancer who was not VAT registered would have charged £100 with no VAT. By the time PPH take their charges, I'm down to £66.67 for a £100 project. The non VAT registered freelancer would get £80. My cheaper price is not even known to the buyer until the project is complete and the invoice is raised, so I can't benefit from offering a lower price and being more likely to win the project.

I can't afford to be paying the buyer's VAT if they are a VAT registered company. If I know I am dealing with a private individual I might reduce the price to compensate for the VAT, but I need to know if the buyer is VAT registered at the bid stage.