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eBay Seller Update 21.1 – EU VAT changes

By Chris Dawson March 3, 2021 - 1:30 pm

Today’s eBay Seller Update has a reminder that we will see major EU VAT changes on the 1st of July 2021, in a similar vein to those the UK introduced on the 1st of January. The main change will mean that marketplaces will be responsible for collecting VAT for overseas sellers, so if you’re in the UK (or anywhere in the world bar EU countries) then this will apply to you.

From the 1st of July 2021, EU VAT changes will impact how VAT is collected on:

  • Imports into the EU,
  • Supplies within the EU by non-EU sellers,
  • and Cross-border supplies by EU sellers.

How EU VAT changes impact eBay selling

eBay will collect and remit VAT based on the seller location, consignment value and the item -location for sales into the EU:

Seller location

Consignment value

Item location

eBay will collect & remit VAT based on delivery country in the EU

Inside EU Up to 150€ Outside EU
Inside EU Above 150€ Outside EU 🗙
Outside EU Up to 150€ Outside EU
Outside EU Above 150€ Outside EU 🗙
Outside EU Any value Inside EU*
Inside EU* Any value Inside EU* 🗙

*delivery address is same EU country or in another EU country

What you need to do

  • eBay asks that all sellers provide a gross price and separate VAT rate on their listings, so that eBay can determine the correct amount of VAT to collect from consumers based on their location.
  • Separate from eBay obligations, EU sellers with an annual turnover of more than €10,000 for their complete intra-EU cross-border supplies will have to charge the VAT of the EU country of delivery.

    How did it work for the UK?

    When the similar UK VAT changes came into effect, we asked eBay how it impacted sellers. You might wish to read the Q&A answers they gave here.

    An idea of how this works

    We asked eBay some questions when similar UK VAT changes came inhttps://tamebay.com/2021/01/online-marketplaces-vat-and-how-it-applies-to-ebay.html

  • Graham Wharton
    2 months ago

    So will eBay be selling UK items to the EU at the gross UK price with EU vat ontop, or are they going to finally fix the double tax situation and sell at net UK price plus EU vat.

  • 2 months ago

    We are a VAT registered business based in the UK and all out stock is held in our UK warehouse. We sell items on eBay; mostly in the UK but also to the EU and beyond. We sell an item at £120. In the UK this is split £100 net and £20 VAT. On the listing it has the gross price of £120 and the VAT rate of 20%. My understanding is that all sales outside of the UK are (as of 01/01/2021) non vatable. So if this same item was to sell in the EU I would create an invoice for £120 (the sales price) and the net amount would be £120 and the VAT would be £0. Can someone explain what the rules would be for the same sale into the EU as of 01/07/2021?

  • 1 month ago

    Yep this double taxation thing needs to be sorted but we all know it never will be because eBay are charging fees on the £120 example above, if that was sold on the site to an EU buyer for £100, they’d lose the fees on the £20 part.
    They’re making hay while the sun shines at the moment but it’s very short sited. Other online platforms have got (and always have had this) very sorted

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