From 1 January 2015, new EU legislation is changing the way VAT is charged on electronically supplied services, such as eBay fees.
If you’re not a business seller, eBay will charge VAT at the rate of the country where you’re based (for example 20% for the UK) rather than the rate of the country where eBay is based (15% for Luxembourg up until 31 December).
How does this affect me?
All business sellers based in the UK will be invoiced excluding VAT (net pricing) from 1 January. For sellers who have already registered a VAT ID with eBay, they will not notice any change.
eBay business seller fees will be displayed as net prices on the fee pages after 1 January.
What should I do next?
If you haven’t registered a VAT ID with eBay, register your VAT ID now. It’s the best evidence that you’re a business.
Not all businesses need to be registered for VAT. However, if you are not currently VAT registered you should monitor your business turnover. If you have any questions regarding whether you should be registered for VAT we recommend that you discuss this with your accountant or tax advisor.
Find out more about the EU VAT legislation change.
Health & Beauty category final value fee on eBay.co.uk:
Subtitle price on eBay.co.uk:
Please note, this guide is general in nature and is not intended to provide individual tax advice. Please seek independent advice from your accountant or tax adviser.
Frequently asked questions
You can access your eBay account to find out if you have already registered your VAT ID with us. To do this, go to My eBay > Account > Site preferences > Business seller preferences.
A VAT ID is the best evidence that you are a business, and would allow eBay to charge business sellers net fees over the long term.
Without your VAT ID on file we may need to contact you for alternative evidence that you are a business.
Business sellers based in the UK, Germany, and Ireland, will be invoiced excluding VAT.
Business sellers based in any other EU country, who have not registered a VAT ID, will be invoiced VAT at the rate of the country where they’re based.
For transactions based on EU eBay sites, business sellers based in Germany, Ireland, and the UK will be invoiced excluding VAT.
Business sellers based in any other EU country without a VAT ID registered with eBay will be invoiced at the rate of VAT in the country they’re based. Business sellers with VAT IDs registered with eBay will be invoiced excluding VAT.