Tax Information

Understand tax obligations that may affect you in the US and EU.

2019 Fall Seller Update    See What’s New

Overview

When you sell on eBay, you’re responsible for complying with all applicable tax laws. If you’re selling to buyers outside the US, you should inform them about the potential import charges they’ll need to pay when they receive their item.

If you sell to buyers in certain states in the US, AU, NZ or in the European Union (EU), your transactions will be subject to applicable sales taxes, Goods and Services Tax, and/or Value Added Tax.

Sellers’ tax responsibilities

You are responsible for paying all fees and taxes associated with using eBay as an eBay seller. For more information on eBay's tax policy and your obligations, see our Tax policy and User Agreement.

Your tax-related responsibilities may include:

  • Paying sales tax on eBay sales
  • Paying income tax on eBay sales
  • Informing overseas buyers about import charges
  • Ability to validate what tax was collected on sales transactions.
Internet Sales Tax in the US

If you sell to buyers in the US, some states may require you to collect applicable Internet Sales Tax on your transactions. As of October 1, 2019, a total of 34 states now require the collection of sales tax. In such cases, eBay collects and remits Internet Sales Tax on your behalf.

Learn more about Internet Sales Tax, on our Help pages, from your tax advisor, or from our partners Avalara and TaxJar.

Starting in November 2019, the way taxable transactions are processed and how taxes are collected for remittance will change, as follows:

  • In states where eBay is required to collect Internet Sales Tax from buyers, order totals sent for processing will reflect the gross order amount inclusive of tax.
  • Once settled, the tax amount will be automatically deducted for remittance to the applicable taxing authority.
  • A record of the sales tax portion of the order will be available on the Seller Hub Order details page and through our Download order report.

Please note the applicable tax will continue to be paid by the buyer and you do not need to take any action. These changes do not apply to sellers in managed payments.

FAQs

Internet Sales Tax FAQs

Expand all Collapse all
Changes in IST Collection

If you sell to buyers in the EU, you may be required to charge and remit Value Added Tax. Value Added Tax 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, charge and remit Value Added Tax in the UK. Speak with a tax advisor to better understand how Value Added Tax applies to your eBay business in the EU and other countries outside the US.

Do I need to register for Value Added Tax in the EU?

eBay wants sellers to be successful and legally protected, wherever you do business.

Registering for Value Added Tax in the EU may help you do both those things.

Whether you need to register for Value Added Tax 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 Value Added Tax 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 Value Added Tax-compliant. eBay has partnered with international consulting firm KPMG to offer Value Added Tax consultation and education at zero cost to our sellers.

Have your Value Added Tax questions answered in less than 24 hours. Email KPMG or call them at (718) 887-9738.

Next steps

Complete the following steps to ensure you are Value Added Tax-compliant and to avoid potential selling restrictions

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

Value-Added Tax resources

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

HMRC Value-Added Tax guidance for overseas, online retailers

HMRC Value-Added Tax registration

KPMG “Value-Added Tax Basics” Webinar

FAQs

Was this page helpful?

0 / 100

Please leave the following fields untouched.