eBay EU VAT changes from 1st Jan 2015

eBay are changing the VAT rates that you will be charged from the 1st January 2015.

It won’t just be eBay that make changes, EU legislation is changing the way VAT is charged on electronically supplied services (which includes eBay fees) and in the future VAT will be applied based on the country the customer is located, rather than where the supplier is headquartered.

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

How the changes will affect you


Consumer sellers will see no change to the total amount that they pay. eBay will still keep the same fee schedule but, instead of including VAT at 15%, fees will include VAT at 20% from 1st January 2015.

VAT registered sellers who have supplied their VAT number to eBay

eBay say that you won’t notice any financial change, you will already be paying fees net of VAT. The only change you’ll see is cosmetic in the way fees are displayed

VAT registered sellers who have NOT supplied their VAT number to eBay

Currently you’ve been paying eBay fees including VAT. From the 1st of January you’ll start paying eBay fees net of VAT, but if you register your VAT number today you can start saving 15% over the busiest selling period up to the end of the year.

Whilst you’ll receive fees net of VAT we would strongly advise you to register your VAT number with eBay. It’s the best way to demonstrate that you’re a serious business, but more to the point if you have a VAT inspection you want everything to be 100% accurate! Don’t invite a more detailed look at your accounts simply because you didn’t take five minutes to register your VAT number with eBay.

Business sellers who are not VAT registered

Not all businesses need to register for VAT. However eBay have dispensation to charge all business sellers net of VAT from the 1st January 2015. You’ll get a 15% discount on your eBay fees from that date!

How eBay fees will be displayed

eBay business seller fees will be displayed as net prices on the fee pages after 1 January 2015. This means that if currently as a business seller you are paying 10% final value fees as an example, next year the fees will be displayed as 8.7% (8.7% fees plus 15% VAT = 10% fees).

Effectively eBay are knocking off the current 15% VAT rate for all business sellers so you’ll need to get used to the new fee percentages for your categories.

Why are eBay making this change

Over the past year there have been a ton of stories in the press about companies such as Amazon, Starbucks, Google and many other companies not paying enough tax. Here at Tamebay we’ve always said companies should only pay the tax in a country that that country’s law demands.

Now that the law (not just in the UK but across the EU) is changing, eBay are complying as we would expect them too. eBay have maintained the position that they pay all taxes due in every territory that they operate in and the VAT changes announced today for business sellers is eBay simply continuing to comply with tax legislation.