eBay GSP Terms & Conditions update clarifies VAT treatment

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eBay have made some changes to the eBay GSP (Global Shipping Programme) for sellers. The updated eBay GSP Terms & Conditions update will apply to existing enrolled sellers in 30 days time and will apply to new sellers participating in the programme immediately.

The main change made to the eBay GSP Terms & Conditions update for sellers was to clarify the VAT treatment for transactions under Global Shipping Programme.

  • Prior to the 1st of July 2021, transactions under the eBay GSP were considered to be UK domestic sales.
  • From the 1st of July 2021, ALL transactions under the Global Shipping Programme are considered as exports.

VAT impact of eBay GSP Terms & Conditions update

Where Global Shipping Programme items are considered as exports from the UK, UK VAT does not in most cases apply. As a result, eBay will in some cases use the information provided in your listing to determine a price net of UK VAT (export price) and charge this to the buyer along with any taxes due or payable by buyer.

Margin & Flat Rate Vat Scheme users should zero rate listings

What this means for you, is that if you are on a Margin VAT scheme, you will probably want to leave the VAT rate blank. As eBay cannot apply a margin scheme (or the Flat Rate VAT Scheme), VAT needs to be collected on the full value of the item sold. If you indicate a VAT rate, this may lead to a reduction in the net amount you receive.

You can see the updated eBay Global Shipping Programme Terms & conditions for sellers here.

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