YOTOOL LTD & LL TRADER LTD (AKA mechanic_warehouse)

We reported this seller to HMRC VAT Fraud team in 2014. They are still trading.  

HMRC has gifted this seller at least £5,000,000 in unpaid VAT so far. That’s 21% of the total £22.5m budget HMRC have allocated to tackle this fraud over the next 5 years.

Case Study

This seller operates 7 eBay business accounts and are the largest supplier of replacement iPhone, Smartphone & iPad screens on eBay.co.uk, with sales of £7,182,132 which equates to £1,197,022 of VAT in 2014.

They account for 24% of TOTAL sales of replacement screens on eBay.

Secret Shopper

We approached the seller and asked for a VAT receipt. The seller responded:

“We are sorry that the price we selling is not include VAT.”

7  eBay accounts operated by YOTOOL LTD & LL TRADER LTD

This seller operates 7 eBay accounts selling the same products in the same categories and  each account is full of duplicate listings for the same products.

Each account has changing their company name, address and VAT numbers on several occasions.

YOTOOL LTD is a newly registered Chinese owned UK company that is not VAT registered

https://beta.companieshouse.gov.uk/company/10697993

LL TRADER LTD – is a Chinese owned UK company that has only submitted one set of accounts. The second set of accounts are 8 months overdue. Their last accounts only had assets of £262.  Very strange for a company with a £7million turn over.

https://beta.companieshouse.gov.uk/company/09060313/

When you purchase an item from this account the money is fed into a Chinese owned PayPal account in the name of “LILUOWANG TRADING LIMITED”

When a VAT receipt is requested it is issued with the VAT Number GB 200082281 belonging to Jiaci Liu

Here is a breakdown of each account:

1) mechanic_warehouse

This seller is using a company name and VAT number that do not match. They have also been allowed to change their details without any verification by eBay:

https://www.ebay.co.uk/sch/mechanic_warehouse/m.html?&LH_PrefLoc=1

New Listing: http://www.ebay.co.uk/itm/332109359028

Company Name: YOTOOL LTD
Address: Liting Wei, 27 Old Gloucester Street, LONDON WC1N 3AX<
Company registration number: 9060313 – (is registered to LL Trading Ltd)
VAT number: GB 190972380  – (is registered to LL Trading Ltd)
Old Listing: http://www.ebay.co.uk/itm/331161689457

Company Name: Trader (not a valid company name)
Address: Liy Liang 75 Stanley Road Bootle, Liverpool Merseyside L20 7BZ United Kingdom
VAT number: UK 200082281 – (is registered to JIACI LIU  – Non-established taxable persons NETPs VAT Number)

2) the_phone_depot

This account has used a company name and VAT number that do not match. They have also been allowed to change their details without any verification by eBay:

https://www.ebay.co.uk/sch/the_phone_depot/m.html?&LH_PrefLoc=1

New Listing: http://www.ebay.co.uk/itm/232457635438

Company Name: LL TRADER LTD
Address: H Edlin 14 THE VILLAGE SQUARE NETHERNE ON THE HILL COULSDON Surrey CR5 1LZ United Kingdom
Company registration number: 9060313
VAT number: GB 190972380 ( registered to LL TRADER LTD)

Old Listing: http://www.ebay.co.uk/itm/251767975316

Company Name:wefixit (INVALID)
Address: Zelang Liang,339 Southside, ST John’s Walk, Birmingham, West Midlands, B5 4TN, United Kingdom
VAT number: GB 15373042 (INVALID)

Old Listing: http://www.ebay.co.uk/itm/231052287479

Company Name:Trader Ltd (INVALID)
Address:  H Edlin 81 Bronte Paths Chells Stevenage Hertfordshire SG2 0PJ United Kingdom
VAT number: UK 206366324 (Registered to PEIYOUNG AZHONG – Non-established taxable persons NETPs VAT Number)

3) electornic_warehouse

https://www.ebay.co.uk/sch/electornic_warehouse/m.html?&LH_PrefLoc=1

New Listing: http://www.ebay.co.uk/itm/182718299528

Company Name: JIACI LIU
Address: Suite 1604, No. 32 Fuli Rd, Nanan Rd 510160 Guangzhou China
VAT number: GB 200082281 (Registered to JIACI LIU  – Non-established taxable persons NETPs VAT Number)

Old Listing: http://www.ebay.co.uk/itm/201406240382

Company Name: EL
Address: Baochang Luo Suite 1604, No. 32 Fuli Rd, Nanan Rd 510160 Guangzhou China
VAT Number: NONE

4) phone_screen_warehouse

This account is using a UK address, invalid company name and a VAT number registered to a Non-established taxable persons NETPs VAT Number:

https://www.ebay.co.uk/sch/phone_screen_warehouse/m.html?&LH_PrefLoc=1

New Listing: http://www.ebay.co.uk/itm/182769329789

Company Name: phone screen warehouse (invalid company name)
Address: Libing Zhong 81 Bronte Paths Chells Stevenage Hertfordshire SG2 0PJ United Kingdom (same address as the_phone_depot)
VAT Number: GB 206366324 (Registered to PEIYOUNG AZHONG – Non-established taxable persons NETPs VAT Number)

5) electronic_best_shop

https://www.ebay.co.uk/sch/electronic_best_shop/m.html?&LH_PrefLoc=1

http://www.ebay.co.uk/itm/222612089573

Company: JIACI LIU
Address: Suite 1604, No. 32 Fuli Rd, Nanan Rd 510160 Guangzhou, China
VAT number: GB 200082281

6) local_electronic_house

https://www.ebay.co.uk/sch/local_electronic_house/m.html?&LH_PrefLoc=1

http://www.ebay.co.uk/itm/152662102004

Company: JIACI LIU
Address: NO. 48 -1 Zhongfa Li, Liwan District, 510160 Guangzhou, China
VAT number: GB 200082281

7) louisbabylove

https://www.ebay.co.uk/sch/louisbabylove/m.html?&LH_PrefLoc=1

http://www.ebay.co.uk/itm/262979402783

Company: LL TRADER LTD
Address: fengyi lao 14 THE VILLAGE SQUARE NETHERNE ON THE HILL COULSDON Surrey CR5 1LZ United Kingdom
VAT number: UK 190972380

Duplicate Listings:

eBay has a policy about listing identical products multiply times; eBay Duplicate Listings Policy. It clearly states this is not allowed:

“More than one identical item listed separately by the same seller, Under another eBay user ID”

This seller is listing the same products on all 4 accounts and is also listing the same products multi times on each account.

Keyword= “iPhone 7 LCD”

https://www.ebay.co.uk/sch/mechanic_warehouse/m.html?&LH_PrefLoc=1&_nkw=iPhone+7+LCD – 18 results

https://www.ebay.co.uk/sch/the_phone_depot/m.html?&LH_PrefLoc=1&_nkw=iPhone+7+LCD – 19 results

https://www.ebay.co.uk/sch/electornic_warehouse/m.html?&LH_PrefLoc=1&_nkw=iPhone+7+LCD – 7 results

https://www.ebay.co.uk/sch/phone_screen_warehouse/m.html?&LH_PrefLoc=1&_nkw=iPhone+7+LCD – 10 results

https://www.ebay.co.uk/sch/electronic_best_shop/m.html?&LH_PrefLoc=1&_nkw=iPhone+7+LCD – 5 results

https://www.ebay.co.uk/sch/local_electronic_house/m.html?&LH_PrefLoc=1&_nkw=iPhone+7+LCD – 2 results

https://www.ebay.co.uk/sch/louisbabylove/m.html?&LH_PrefLoc=1&_nkw=iPhone+7+LCD – 5 results

Keyword= “USB Memory Stick iPhone”

https://www.ebay.co.uk/sch/mechanic_warehouse/m.html?&LH_PrefLoc=1&_nkw=USB+Memory+Stick+iphone&_sop=3 – 176 results

https://www.ebay.co.uk/sch/the_phone_depot/m.html?&LH_PrefLoc=1&_nkw=USB+Memory+Stick+iphone&_sop=3 – 157 results

https://www.ebay.co.uk/sch/electornic_warehouse/m.html?&LH_PrefLoc=1&_nkw=USB+Memory+Stick+iphone&_sop=3 – 83 Results

https://www.ebay.co.uk/sch/phone_screen_warehouse/m.html?&LH_PrefLoc=1&_nkw=USB+Memory+Stick+iphone&_sop=3 – 1 results

https://www.ebay.co.uk/sch/electronic_best_shop/m.html?&LH_PrefLoc=1&_nkw=USB+Memory+Stick+iphone&_sop=3 – 133 Results

https://www.ebay.co.uk/sch/local_electronic_house/m.html?&LH_PrefLoc=1&_nkw=USB+Memory+Stick+iphone&_sop=3 – 19 Results

https://www.ebay.co.uk/sch/louisbabylove/m.html?&LH_PrefLoc=1&_nkw=USB+Memory+Stick+iphone&_sop=3 – 99 Results

Amazon Accounts:

This seller also trades on Amazon with 2 duplicate accounts

LILUOWANG TRADING LIMITED: http://www.amazon.co.uk/gp/aag/main?seller=A16VO7BW1MFJAM

LL TRADER LTD: http://www.amazon.co.uk/gp/aag/main?seller=A239LUPZHDNO95

Questions for HMRC to answer:

  1. Why is this seller declaring that their prices do not include VAT?
  2. Is this seller using Paypal to launder £7,182,132 a year out of the UK and into China to evade paying £1,197,022 in VAT?
  3. Does the VAT returns of 153730423 account for £1,197,022 of VAT a year generated by LL Trading Ltd eBay accounts?
  4. Is the address given on their VAT return really their trading address?