Value Added Tax (VAT)

Do you have EU tax obligations you didn't realize? Find out.

What is VAT?

For thousands of eBay sellers, the Value Added Tax is already part and parcel of doing business in the EU. But what is it?

  • VAT is similar to a sales tax. Generally speaking, it's a tax on a business's gross receipts from the sale of goods and services.
    • For example, any eBay seller making sales to UK buyers and fulfilling those orders from UK-based inventory is likely obligated to register for and pay VAT in the UK.
  • Speak with a tax advisor to better understand how VAT applies to your eBay business in the EU and other countries outside the US.

How Do I Know if I Need to Register for VAT in the EU?

eBay wants sellers to be successful and legally protected, wherever you do business. Registering for VAT in the EU may help you do both those things.

Whether you need to register for VAT in an EU member state depends on the way you conduct your business.

The key factors that determine if you have an obligation to register for VAT are:

  1. Your business's country of establishment
  2. The location of your inventory
  3. Your level of sales

It's each seller's responsibility to ensure they are VAT-compliant. eBay has partnered with international consulting firm KPMG to offer VAT consultation and education at zero cost to our sellers.

Have your VAT questions answered in less than twenty-four hours. Email KPMG or call them at (718) 887-9738.

What Do I Need to Do?

Complete the following steps to ensure you are VAT-compliant and to avoid potential selling restrictions:

  1. Register with the local tax authority in each country where you've determined you have a VAT obligation.
    1. For example in the UK, register with HM Revenue & Customs (HMRC), the UK's tax authority.
  2. Provide eBay with your VAT ID number, and we'll automatically add it to all your eligible new listings.

VAT Resources

Email KPMG or call them at (718) 887-9738 for a no-cost VAT consultation

HMRC VAT guidance for overseas, online retailers

HMRC VAT registration