VAT Compliance on ebay

 
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What Sellers Need To Know

If you are a business selling on ebay.co.uk it’s important for you to check if you are complying with their Value Added Tax (VAT) obligations.

Depending on where you or your goods are located and the size of their business, VAT rules may apply.

VAT is complex and there are quirks, for example when selling used goods. We recommend that sellers seek advice from an accountant or HRMC directly, but here are some starter tips:

  • If your business is located in the UK and sells goods to UK customers and your total UK located sales are above £85,000 per annum, you must:
    • Register with the UK tax authority (HMRC)
    • Display your VAT ID on their eBay listings
    • Collect VAT
    • Report their collected VAT by completing a tax return with HMRC
  • If you are located overseas and forward deploy inventory to the UK, no threshold applies and you must immediately register for VAT.
  • If you ship to, or forward locate inventory in other EU states you may also have to register for and pay VAT in those countries as well.
  • Please visit the eBay Seller Centre for additional resources and information.
  • ebay sellers can also visit the following link for information from HMRC on how to register.