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EU VAT Legislation
 

Got this email about a change starting January 2015

What’s changing?
From 1 January 2015, new EU legislation is changing the way VAT is charged on electronically supplied services, such as eBay fees.

If you’re not a business seller, eBay will charge VAT at the rate of the country where you’re based (for example 20% for the UK) rather than the rate of the country where eBay is based (15% for Luxembourg up until 31 December).

How does this affect me?
All business sellers based in the UK will be invoiced excluding VAT (net pricing) from 1 January. For sellers who have already registered a VAT ID with eBay, they will not notice any change.

eBay business seller fees will be displayed as net prices on the fee pages after 1 January.

What should I do next?
If you haven’t registered a VAT ID with eBay, register your VAT ID now. It’s the best evidence that you’re a business.

Register your VAT ID now

Not all businesses need to be registered for VAT. However, if you are not currently VAT registered you should monitor your business turnover. If you have any questions regarding whether you should be registered for VAT we recommend that you discuss this with your accountant or tax advisor.

Find out more about the EU VAT legislation change.

Examples:
Health & Beauty category final value fee on eBay.co.uk:
Before 1 January 2015: 10% (includes 15% Luxembourg VAT)
After 1 January 2015: 8.7% (no VAT)

Subtitle price on eBay.co.uk:
Before 1 January 2015: £1.00 (includes 15% Luxembourg VAT)
After 1 January 2015: £0.87 (no VAT)

Please note, this guide is general in nature and is not intended to provide individual tax advice. Please seek independent advice from your accountant or tax adviser.

Re: EU VAT Legislation
 

So for all those UK businesses below VAT thresholds, how will eBay verify?

Re: EU VAT Legislation
 

Any one got an update on this?

Re: EU VAT Legislation
 

I just got the request from Ebay as well.

"eBay has been notified that your listings are not compliant with UK local law (and eBay policies) due to your failure to display a valid VAT number on your listings. Please go into My eBay > Account > Site preferences > Business seller preferences and update your details to include a valid VAT number. Please ensure that a valid VAT number is displayed on all listings by 23 January 2015. Failure to comply with this requirement will result in eBay taking appropriate action on your listings and account, in accordance with the eBay User Agreement. Please note that this may involve removing the non-compliant listings and the suspension of your eBay account until the legally required information is provided."

Not sure what to do as I am not VAT registered either.

Re: EU VAT Legislation
 

Natbabes, when you say:

"If you’re not a business seller, eBay will charge VAT at the rate of the country where you’re based (for example 20% for the UK) rather than the rate of the country where eBay is based (15% for Luxembourg up until 31 December)."

You are just referring to how Ebay charges VAT on fee's correct? You are not saying Ebay is going to collect VAT based on the sale price correct?

Re: EU VAT Legislation
 

Please put your correct country flag on your profile.

:ballchain: