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eBay Issues Tax Warning to UK Sellers


eBay logoeBay issued a warning to UK sellers advising them to comply with Value Added Tax (VAT) obligations. The company said it works with the country’s tax agency HMRC on preventing tax evasion, and said it would take action against sellers who are non-compliant.

Announcement follows:

Important tax reminder: Your Value Added Tax (VAT) obligations

If you are running a business selling on ebay.co.uk it’s important to check you are complying with your Value Added Tax (VAT) obligations. Depending on where you or your goods are located and the size of your business, VAT rules may apply to you.

VAT is complex and there are quirks, for example when selling used goods. We recommend that you seek advice from an accountant, but here are some starter tips:

If your business is located in the UK and sells goods to UK customers and your total UK located sales are above £85,000 per annum, you must:

– register with the UK tax authority (HMRC), and

– display your VAT ID on your eBay listings; and

– collect VAT, and

– report your collected VAT by completing a tax return with HMRC.

If you are located overseas and forward deploy inventory to the UK, no threshold applies and you must immediately register for VAT.

If you ship to, or forward locate inventory in other EU states you may also have to register for and pay VAT in those countries as well.

Please visit the eBay seller centre for additional resources and information.

You can also visit this link for information from HMRC on how to register.

eBay continues to work with HMRC to prevent tax evasion and will take action against those who don’t comply with the law, including selling blocks.

Thank you for selling with us.

SOURCE: eBay UK Announcement

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.