New VAT Charges

[dlwsales13]

I'm a bit confused by the message we received today.  As a US seller, do I need to add VAT cost to my items?  If so, how do I determine how much?

[corvettestainless]

You don't need to add anything; ebay will charge the customer. Ignore the rest of the message about 'gross' etc. not required. 

[slippinjimmy]

If you are listing on .com you don't need to do anything, eBay will collect VAT from any UK buyers you may have. The message today is directed to sellers who list directly on .uk or any other EU site.

I presume this will work the same way as US Sales Tax, meaning that sellers will be charged eBay fees on the VAT amount.....get ready for a shock because the UK VAT rate is 20%.

This change will also mean that a lot fewer low value items that were previously tax free to UK buyers (anything less than 15 GBP) will be selling. On the other hand all those buyers issues when they refused shipments or complained to sellers about import taxes will go away.

Add to that USPS International rates will be going up again in January so anyone who is selling sub US$20 items to the UK, your buyers will effectively have to pay about 25% more than they do today.

You can see all the details of this change (big picture) at the following link:

https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-custom...

eBay will be an "online marketplace" which is essentially the same  a Marketplace Facilitator here in the US.

Won't be long until you'll have a story to tell to explain that way back in the "good old days" people bought things from far away just to avoid paying taxes.

[mozartbach1971]

If you are listing on .com you don't need to do anything, eBay will collect VAT from any UK buyers you may have. The message today is directed to sellers who list directly on .uk or any other EU site.

I presume this will work the same way as US Sales Tax, meaning that sellers will be charged eBay fees on the VAT amount.....get ready for a shock because the UK VAT rate is 20%.

This change will also mean that a lot fewer low value items that were previously tax free to UK buyers (anything less than 15 GBP) will be selling. On the other hand all those buyers issues when they refused shipments or complained to sellers about import taxes will go away.

Add to that USPS International rates will be going up again in January so anyone who is selling sub US$20 items to the UK, your buyers will effectively have to pay about 25% more than they do today.

You can see all the details of this change (big picture) at the following link:

https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-custom...

eBay will be an "online marketplace" which is essentially the same  a Marketplace Facilitator here in the US.

Won't be long until you'll have a story to tell to explain that way back in the "good old days" people bought things from far away just to avoid paying taxes.

I do sell items to buyers in the UK and I choose the option to have my listings placed on the UK site for I believe an extra ten cents.  Does this mean I have to do something?  

[slippinjimmy]

---

@mozartbach1971 wrote:

I do sell items to buyers in the UK and I choose the option to have my listings placed on the UK site for I believe an extra ten cents.  Does this mean I have to do something?  

---

No, your listing are done on .com so eBay will take care of everything related to UK VAT (and charge you a fee for the pleasure).

The UK International Visibility option is not the same as a listing placed directly on the UK site.

They are already doing this for Norway and Australia (for a year or more). Same thing will apply to the EU countries later in 2021.

Might see it happen with Canada as well at some point and perhaps some other countries.

[Anonymous]

yesterday was + 20% VAT will apply  today its + 25% VAT will apply 

why today 5% more this is strange !!!!!

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.