1. Why do I have to start paying VAT?
   
2. Which eBay fees do I have to pay VAT on?
   
3. I live in a non-EU country. Do I have to pay VAT?
   
4. Will VAT be charged on top of eBay fees?
   
5. As a buyer, does this mean I have to pay VAT on my eBay purchases?
   
6. How do I become VAT-exempt on eBay? How do I register as a business on eBay?
   
7. How long will it take to get VAT-exempt status on eBay?
   
8. Who is VAT-exempt on eBay?
   
9. Where do I get a VAT identification number?
   
10. I am thinking of setting up a business so that I don't have to pay VAT on eBay. How should I go about it?
    
11. Why do I have to start paying VAT? Why are the fees more expensive?
    

1. Why do I have to start paying VAT?
The European Union issued a directive last year making digital services collect VAT on service fees from sellers who reside, have a permanent address, or are established in the European Union. This means that we will collect VAT on all seller fees - including listing and final value fees and fees for subscription services - starting on 1 July 2003.

Business sellers who submit a valid VAT identification number and satisfy the other requirements of the business registration process can register for a VAT exemption on eBay fees and will not be charged VAT on eBay fees.

For more details on how to to register for a VAT exemption on eBay fees, please go here.

To find out more about VAT on eBay please go to this page.

2. Which eBay fees do I have to pay VAT on?
eBay sellers who reside, have a permanent address, or are established in the European Union will be required to pay VAT on all seller fees when listing on an EU eBay site, including insertion fees, feature fees, final value fees, and service subscription fees.

Business sellers who submit a valid VAT identification number, and satisfy the other requirements of the business registration process, can register for a VAT exemption on eBay fees and will not be charged VAT on eBay fees. For more details on how to register for VAT-exempt status, please click here.

Finance charges will not be subject to VAT.

3. I live in a non-EU country. Do I have to pay VAT?
The new EU VAT Directive only applies to sellers who reside, have a permanent address, or are established within the EU. If you are an EU resident and use any eBay EU site to sell items, you may be charged VAT on eBay fees. eBay does not charge VAT in respect of use of eBay non-EU sites.

To find out more about how VAT will be applied on eBay please go to this page.

4. Will VAT be charged on top of eBay fees?
From 1 July 2003, all fees displayed on the website will be gross fees, i.e. VAT will be included. Only in your account pages will you also see the applicable net fees.

Business sellers who submit a valid VAT identification number, and satisfy the other requirements of the business registration process, can register for a VAT exemption on eBay fees and will not be charged VAT on eBay fees. For more details on how to register for VAT-exempt status as a business on eBay, please go here.

To find out more about VAT on eBay please go to this page.

5. As a buyer, does this mean I have to pay VAT on my eBay purchases?
All goods and services traded between sellers and buyers on the eBay are not affected by these changes. Sellers remain responsible for paying the appropriate taxes on their eBay sales and purchases, just as they do for any offline transactions. We encourage all sellers to consult with their tax advisors to make sure they follow all applicable laws.

To find out more about VAT on eBay please go to this page.

6. How do I become VAT-exempt on eBay? How do I register as a business on eBay?
Business sellers who submit a valid VAT identification number, and satisfy the other requirements of the business registration process, will not be charged VAT on eBay fees. For more details on how to register for VAT-exempt status as a business on eBay, please go here.

7. How long will it take to get VAT-exempt status on eBay?
Once you have submitted your VAT identification number it may take several weeks for us to process it. Your patience in the meantime is appreciated. Please note that in the first few weeks following the introduction of VAT on eBay, it is possible that it may take a little longer to process VAT identification numbers due to a peak in applications.

8. Who is VAT-exempt on eBay?
To qualify for a VAT-exemption on eBay fees, sellers must use their eBay accounts for business purposes only, submit their VAT ID numbers to eBay, certify that their businesses are VAT exempt under the law, and attest to the accuracy of the information submitted. For more details on how to register for VAT-exempt status, please click here.

9. Where do I get a VAT identification number?
If you do not yet have your VAT ID number, or have questions about your VAT ID, please contact your local tax authority or your tax adviser. You may also find helpful information on the website of HM Customs & Excise.

Please note that we require your VAT identification number as opposed to any other local tax reference number. VAT identification numbers for [the UK, Ireland and Sweden] have one of the following formats:

Country	Countrycode	Position
Great Britain	GB GB GB	+ 9 digits or + 9 + 3 digits or + 2 characters + 3 digits
Ireland	IE	+ 8 characters
Sweden	SE	+ 12 digits

To find out more about VAT on eBay please go to this page.

10. I am thinking of setting up a business so that I don't have to pay VAT on eBay. How should I go about it?
Each EU country has its own guidelines about who may obtain a VAT ID number. Please contact your local tax authority or tax advisor for more information. If you live in [the UK] and are thinking of starting a business to support your eBay trading you may find the following websites useful:

Inland Revenue

Department of Trade & Industry

Small Business Service

Learn more about VAT exempt business sellers.

11. Why do I have to start paying VAT? Why are the fees more expensive?
The European Union issued a directive last year making digital services collect VAT on service fees from sellers who reside, have a permanent address, or are established in the European Union. This means that we will collect VAT on all seller fees - including listing and final value fees and fees for subscription services - starting on 1 July 2003.

Business sellers who submit a valid VAT identification number, and satisfy the other requirements of the business registration process, can register for a VAT exemption on eBay fees and will not be charged VAT on eBay fees For more details on how to register for a VAT-exemption on eBay fees, please go here.

At the same time as the implementation of VAT, we will restructure eBay's insertion, feature and final value fees. We will raise some fees, reduce others, while keeping some the same. In addition, we have changed many of our reserve fees.

In addition, there has been a comprehensive restructuring of seller fees on eBay.co.uk. Please go here for further details

To find out more about VAT on eBay please go to this page.