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Changes to eBay's structure in the EU
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We would like to inform you of an important change to eBay's EU structure. We have set up a new entity in the European Union, located in Luxembourg, called eBay Europe, S.à r.l. This entity will become the new contractual partner for all our EU-based members. This change will come into effect on March 1st, 2007.

This change will mean that all EU-based sellers are treated equally and are subject to the same rate of tax on their eBay selling fees - the Luxembourg VAT rate of 15%.

What will this change mean for me?
"What this means for you depends on whether or not you have a valid VAT number issued to you by an EU government (most probably the HM Customs & Revenue in your case)" and whether or not you have registered for VAT-exempt status on an eBay site in the EU (most probably eBay.co.uk in your case).

Please note when reading the explanations below, that this change will affect all selling fees, other than the subscription fees for the eBay Motors Pro dealer service which are charged to dealers net of VAT and which will remain unchanged.

I do not have an EU VAT number
In most cases this means that HMRC has not issued you with a UK VAT number.

Issuance of UK VAT numbers is subject to rules set out by HMRC. You can check your eligibility for a VAT number on the HMRC website. Should you be eligible for a VAT number, you can apply for one directly with HMRC.

If you do not have a VAT number, eBay will continue billing you for "gross" selling fees (i.e. including VAT). Gross fees will not be changing as a result of the change to our EU structure. Therefore, the eBay.co.uk selling fees you pay will not change as a result. However, please note that we are making some fee adjustments at the same time.

Your invoice will no longer specify the amount of VAT you pay. Your invoice will state the total amount due (fees + VAT). This total will include VAT at the Luxembourg rate of 15%, where applicable. Please note that we will no longer be able to supply information as to how much VAT you have been charged.

As the circumstances of each business vary greatly, we recommend that sellers who have questions about how this change will impact their individual circumstances consult their tax advisor.

I have an EU VAT number and I have registered for VAT-exempt status on an EU eBay site
In most cases this means that HMRC has issued you with a valid VAT number and you have registered for VAT-exempt status on eBay.co.uk

You will continue being billed by eBay for your selling fees "net" of VAT. "Gross" fees (i.e., including VAT at the Luxembourg rate of 15%) charged by eBay will not change as a result of the change to our VAT structure. Net fees will however be impacted. Please also note that we are making some fee adjustments at the same time.

I have an EU VAT number but I have not registered it on an EU eBay site
In most cases this means that HMRC has issued you with a valid VAT number but you have not registered for VAT-exempt status on eBay.co.uk.

If eBay.co.uk has not been informed of your VAT status we will continue treating you as a non-VAT-registered seller, and continue invoicing you for gross eBay.co.uk selling fees (i.e., including VAT).

Gross fees (i.e., including VAT) charged by eBay will not change as a result of the change to our EU structure. However, please note that we are making some fee adjustments at the same time.

Your invoice will no longer specify the amount of VAT you pay. Your invoice will state the total amount due (fees + VAT). This total will include VAT at the Luxembourg rate of 15%, where applicable. Please note that we will no longer be able to supply information as to how much VAT you have been charged.

Some sellers, who have a valid VAT number but have not registered for VAT-exempt status on eBay.co.uk, have been claiming VAT back directly from HMRC. Please note that as a result of this change sellers will no longer be able to do this. To be invoiced for eBay.co.uk selling fees net of VAT all sellers will need to register for VAT-exempt status on eBay.co.uk (or another eBay EU site, if applicable).

In order to register for VAT-exempt status with eBay.co.uk, you must be registered as a business seller.

Register as a business seller
Register for VAT-exempt status


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