Forum

ebay taxes on each country
 

Hello guys, i hope you are doing well :d
I just created some accounts on UK and find out that eBay taxes/fees are little high, is there any countries among EU/UK/US with less taxes... or it's something usual

Re: ebay taxes on each country
 

In the US the customer pays the taxes according to what state they live in to eBay on your behalf who pays the state tax office it. In the UK the VAT rate is 20% but the prices on retail always have that built into the price unlike the USA where they add after the sale. If you are turning over under £85,000 in the UK you do not have to register for VAT or pay it to HMRC.
The eBay selling fees for each category in the UK and USA are the same, where else in the EEC it is different I do not know.

Re: ebay taxes on each country
 

ebay does not tax seller or buyer,Ebay collects sales tax from the buyer and remit to the state /city government,thats how it works in USA

Re: ebay taxes on each country
 

do foreign sellers selling on EBay USA pay income tax to US government,if so ,how?

Re: ebay taxes on each country
 

The answer is no as they have to pay income tax on earnings in their own countries, as do Americans selling into other countries declare their profits from these sales for tax with the IRS.

Re: ebay taxes on each country
 

it seems you are all not up to date , nowdays it is the item location that matters for VAT / sales tax

the country of registration is secondary and matters mostly in combination with item location

Re: ebay taxes on each country
 

I suggest you focus on the amount of sales you can get and not on the taxes.

Re: ebay taxes on each country
 

I think you are right, foreigner comes to a country and make money,he has to pay,but how does the govt collect?

Re: ebay taxes on each country
 

VAT and sales tax are collected by ebay in many cases , for example if you are a chinese company shipping from california the sales tax will be charged the same way it would be on a local company shipping the same way

Re: ebay taxes on each country
 

Extract from eBay UK below a

Goods shipped to the UK from abroad
Effective 1 January 2021, eBay is required to collect VAT on certain orders delivered to UK addresses: Orders up to £135 sent from outside the UK. Orders of any value where the item is located in the UK, but the seller is not a UK seller.

That deals with if VAT is to be paid on when goods imported from outside the UK through eBay shipping it, if a package goes through the Royal Mail with a value over £135 then they will collect the VAT due from the buyer.

Similarly if shipping through eBay from the UK TO THE USA through Global shipping, depending on the goods, different customs tariffs apply according to the value and product type.

The other tax question was who does the seller pay tax on the sale to, he will pay tax on the profit to their IRS in their own country