Is VAT being charged on your eBay invoice?

eBay New Logo FeatMike is a VAT registered business selling on eBay. When he lists fees are shown VAT free but he says that VAT is still being applied to his eBay invoices.

He’s sent eBay a copy of his VAT registration certificate and now all of listing fees show as VAT free when uploading to eBay in the likes of TurboLister, all final value fees are shown VAT free too. However when his eBay invoices arrives they still have 15% VAT added.

Mike says that he’s spoken to eBay support by telephone and was told that “their back-end system doesn’t appear to be picking-up the fees without VAT”. However they do say that he’ll eventually be refunded. This has been going on since November and he reckons he’s now owed a four figure sum from VAT that shouldn’t have been collected.

This might be a one off isolated case, but are you being charged VAT that shouldn’t be collected? If you’ve given eBay your VAT number and applied for VAT exempt fees then please do let us know if VAT is still appearing on your eBay invoice.

To pay your eBay invoice net of VAT you first need to register your eBay account as a Business Seller and then register for VAT exemption on eBay fees.

While we’re on the subject of VAT, Luxembourg’s VAT rate, the lowest in the EU, is expected to increase in 2015 from 15% to 16%.