There are important changes to EU VAT regulations from July 2021. These will affect all eBay sellers who trade to or from the EU.
The information below includes details of how eBay will comply with these changes as well as actions you need to take. You will find full details about all changes on eBay’s dedicated Help Page.
EU VAT regulations for VAT registered sellers
If you are a VAT-registered seller, then you need take the following actions:
- Provide VAT rates
When listing on any European or UK site, always provide the gross price and the VAT rate you used to calculate the gross price. Where eBay has to collect VAT on your sales to European buyers, eBay will add it to your listing price net of your indicated VAT rate. This ensures that we can always display the correct VAT-inclusive price to European buyers and that eBay doesn’t collect VAT on an already VAT-inclusive price, which would make your listing uncompetitive. If you did not apply VAT, you can leave this field empty. Where eBay has to collect VAT, we will add this on top of your listing price. Update VAT rates on your listings here.
- Share IOSS number for EU imports
Where eBay has collected VAT on your shipment from the UK to the EU (up to a consignment value of 150€), always electronically provide to your carrier the Import One-Stop Shop (IOSS) number provided by eBay. Otherwise, your buyers may have to pay VAT again on delivery. Find out more here.
As shipments between the UK and EU are considered as export sales in cases where eBay is not responsible for VAT, the prices will also be adjusted to show a net price to buyers. Buyers still need to pay import VAT on delivery.
EU VAT regulations for non-VAT registered sellers
If you are not registered for UK VAT then you need to take the following actions:
- Get familiar with EU import VAT
If you are not registered for UK VAT, you do not need to add a VAT rate to your listings. Where eBay has to collect VAT, we will add VAT on top of your listing price for shipments from the UK to the EU with a consignment value up to 150€.
- Share IOSS number for EU imports
Where eBay has collected VAT on your shipment from the UK to the EU (up to a consignment value of 150€), always electronically provide to your carrier the Import One-Stop Shop (IOSS) number provided by eBay. Otherwise, your buyers may have to pay VAT again on delivery. Find out more here.
Please note that eBay will also have new reporting requirements. Make sure that your business details, VAT ID (where applicable) and item location stored with eBay are always accurate.
eBay recommend that you familiarise yourself with the upcoming changes so that you can prepare your business well in advance. They advise that you contact your tax advisor to discuss next steps.
eBay EU VAT Webinar
In recognition that these are quite serious changes to the way that you will trade with the EU, eBay are holding a webinar on the 4th of June at 2pm.
Experts from eBay and Avalara, eBay’s external partner for tax compliance in online trade, will cover:
- Details about upcoming VAT changes in Europe
- Important changes on our platform and how you can prepare your business
- Your questions about this topic
You can join the webinar here and may need the passcode: 184144.
