UK VAT taxes - There goes my eBay sales to the UK
Starting January 1, 2021, eBay will be legally required to begin collecting and remitting value-added tax (VAT) for consignments (shipments of goods) imported into the UK with a value of up to £135. eBay will charge buyers the applicable VAT amount directly and remit this sum to the UK Tax authorities.
U.S. sellers who create listings on the UK or any EU site and who trade with UK buyers will need to provide both gross price (i.e., the item price including VAT) as well as the applicable VAT rate used to calculate the gross price on all listings. If sellers do not specify gross price and VAT rate, or if sellers specify a VAT rate of 0%, eBay will assume that the price provided is the net price (i.e., the item price excluding VAT), and eBay will calculate the gross price that is displayed to buyers.
We strongly urge sellers listing on eBay.co.uk or any EU site to update their existing listings to include applicable VAT rates as soon as possible. All new listings should include a VAT rate. You will find the field for the VAT rate beside the price when you create or edit listings.
What you need to know:
Starting January 1, 2021, eBay will start to collect and remit VAT for UK imports on all consignments with a value of up to £135. There will no longer be a VAT exemption for small consignments up to £15.
In cases where the seller is a non-UK business and the goods are already in the UK, eBay will collect and remit VAT for goods sold to consumers within the UK, regardless of their value.
Sellers should begin listing the applicable VAT rates on all their existing and new listings as soon as possible.
Starting March 1, 2021, a VAT rate will also be required on all EU sites when listing items.
To see the latest information on the upcoming changes, please visit UK Seller Center 2021 VAT Changes:
This email is not intended as tax or legal advice. We recommend that you seek independent tax or legal advice to ensure compliance with applicable laws and regulations.
Thank you for selling on eBay,
Your eBay Team