Upcoming: Add VAT to listings before Jan. 1 when eBay starts collecting VAT on UK imports

[ricarmic]

Got the below message today.

As far as I see, there's nothing for me to do, I don't sell directly on .UK, and I expect it will end up like happens for Australia and Singapore (and the USA) it just gets added on the the bill and passes through PAYPAL until MP arrives.

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Starting January 1, 2021, eBay will be legally required to begin collecting and remitting VAT for UK imports. eBay will have to charge buyers the applicable VAT amount directly and remit this sum to the relevant authorities.

Sellers trading with UK buyers and listing on the UK or any EU site will need to provide both gross prices as well as the applicable VAT rate used to calculate the gross price on all listings. If sellers do not specify gross prices and VAT rates, eBay will have to assume that the price provided is the net price, and will add VAT on top of the price displayed to buyers.

We strongly urge sellers listing on eBay.co.uk or other European eBay sites to specify the applicable VAT rates on existing listings as soon as possible. All new listings should include a VAT rate. If you don’t have an EU or UK VAT ID, then simply enter 0% beside the price when you create or edit listings.

What you need to know:

- Starting January 1, 2021, eBay will start to collect and remit VAT for UK imports on all consignments with a value of up to £135. There will no longer be a VAT exemption for small consignments up to £15.

- In cases where the seller is a non-UK business and the goods are already in the UK, eBay will collect and remit VAT for goods sold to consumers within the UK, regardless of their value.

- Sellers should begin listing the applicable VAT rates on all their existing and new listings as soon as possible.

- Starting March 1, 2021, eBay will make it mandatory to add a VAT rate on all UK and EU sites when listing items.

To see the latest information on the upcoming changes, please visit UK Seller Centre 2021 VAT Changes:

https://sellercentre.ebay.co.uk/global-sales/2021-vat-changes

This email is not intended as tax or legal advice. We recommend that you seek independent tax or legal advice to ensure compliance with applicable laws and regulations.

Thank you for selling on eBay,
Your eBay Team

[marnotom!]

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@lotzofuniquegoodies wrote:

Maybe not such a big deal with the US customers. Average state tax is in the 7% mark. 20 % could sway a UK buyer one way or the other and possibly make them look a little harder to find locally. Throw in expensive international shipping to the total and it adds substantially to an orders final bottom line.

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That 20% VAT would apply to local purchases as well, if the seller is obligated to collect and remit VAT.  The rub is that VAT can be--and often is--buried in the item's price, so the buyer doesn't always "feel" like they're paying it.

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@lotzofuniquegoodies wrote:

In the past 70 - 80 % of my orders were to the USA and the majority of the profits. In the last year bulk have been Canada with now random low value orders to the USA. A couple of months I had more orders outside N. America in relationship to the USA.

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Which could be due to COVID-19 complications or just about anything else just as easily as it could be due to Internet taxes.

You seem to hang out on the .com discussion boards more than I do, so you may know better than I, but I haven't been able to find much in the way of posts or threads from US sellers complaining that Internet taxes have killed their sales.  I've found a few old posts from sellers speculating that IST would kill their sales, but that's different.

[lotzofuniquegoodies]

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@ricarmic wrote:

Got the below message today.

As far as I see, there's nothing for me to do, I don't sell directly on .UK, and I expect it will end up like happens for Australia and Singapore (and the USA) it just gets added on the the bill and passes through PAYPAL until MP arrives.

===================================================

Starting January 1, 2021, eBay will be legally required to begin collecting and remitting VAT for UK imports. eBay will have to charge buyers the applicable VAT amount directly and remit this sum to the relevant authorities.

Sellers trading with UK buyers and listing on the UK or any EU site will need to provide both gross prices as well as the applicable VAT rate used to calculate the gross price on all listings. If sellers do not specify gross prices and VAT rates, eBay will have to assume that the price provided is the net price, and will add VAT on top of the price displayed to buyers.

We strongly urge sellers listing on eBay.co.uk or other European eBay sites to specify the applicable VAT rates on existing listings as soon as possible. All new listings should include a VAT rate. If you don’t have an EU or UK VAT ID, then simply enter 0% beside the price when you create or edit listings.

What you need to know:

- Starting January 1, 2021, eBay will start to collect and remit VAT for UK imports on all consignments with a value of up to £135. There will no longer be a VAT exemption for small consignments up to £15.

- In cases where the seller is a non-UK business and the goods are already in the UK, eBay will collect and remit VAT for goods sold to consumers within the UK, regardless of their value.

- Sellers should begin listing the applicable VAT rates on all their existing and new listings as soon as possible.

- Starting March 1, 2021, eBay will make it mandatory to add a VAT rate on all UK and EU sites when listing items.

To see the latest information on the upcoming changes, please visit UK Seller Centre 2021 VAT Changes:

https://sellercentre.ebay.co.uk/global-sales/2021-vat-changes

This email is not intended as tax or legal advice. We recommend that you seek independent tax or legal advice to ensure compliance with applicable laws and regulations.

Thank you for selling on eBay,
Your eBay Team

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@brettjet38 @ricarmic 

As an FYI for anyone that might be interested, going forward if you have any orders for the UK and would like to add to your any customs documents that duty HAS been already collected if you check the order detail it Sellers Hub it is noted as part of the buyers address that VAT was collected.  (It only displays to the Sellers Hub details. It does not add if you print with the packing slip tool - Item Price + Shipping = Total.)

The format will be as follows:

GB ### #### ## Code Paid

This number should be unique for each buyer

This information should also display for any countries that get added in the future for VAT collection

For my most recent order to UK this information did not transpose to Shippo. If you wanted to add the amount collected you could do that at your discretion. This was passed on to me a UK seller from their discussion board.

-Lotz

PS. On the packing slip created in Shippo it just  transcribes it using the verbiage: Tax: with  the CAD amount. No notation that it is specifically VAT and/or that it was collected by eBay.

[ricarmic]

Hi @lotzofuniquegoodies 

It is doing this for NZ now as well, I suspect more countries to come soon!

[recped]

GB ### #### ## Code Paid

This number should be unique for each buyer

It will always be the same number for all UK buyers, the number is eBay's VAT registration number, same as a Canadian GST Business Number.

FYI - Don't know about the UK VAT # but eBay's Australian GST number does not get passed to Stamps.com either but it does come through to SixBit so eBay IS making it available in the API.

[lotzofuniquegoodies]

Thanks for the heads up @ricarmic 

Also of note that ABN number we are using will always be different for each Australian customer.  GB number for UK Buyers. My interpretation was it was a number attached/affiliated directly to eBay. Ooops!!! It would/should be unique for each customer. Now, too bad that information does not port to your customs document and/or packing slip. Something else to add to the collection of eBay rules and requirements database!!

-Lotz

In reviewing a UK discussion on this topic, like the US situation, there are items that are either exempt or have lower tax rates(clothing, currency etc). Same would apply for the UK and other countries as they are added. Appears when eBay programmers were let loose to set this up they just went with a flat 20% across the board because that was the easiest way to go. Some UK sellers are a little miffed at this!!

[recped]

Also of note that ABN number we are using will always be different for each Australian customer.

The number will not be different, it's the same for every buyer!

You can find the Australian, New Zealand and Norway registration numbers on this page:

https://www.ebay.com/help/policies/selling-policies/tax-policy?id=4348

Although that page talks about the UPCOMING collection of UK VAT it has not yet been updated with the UK VAT registration number to reflect the change on January 1st.

FYI - VAT collection will be extended to ALL EU member countries on July 1/21.

[recped]

In reviewing a UK discussion on this topic, like the US situation, there are items that are either exempt or have lower tax rates(clothing, currency etc). Same would apply for the UK and other countries as they are added. Appears when eBay programmers were let loose to set this up they just went with a flat 20% across the board because that was the easiest way to go. Some UK sellers are a little miffed at this!!

eBay programmers were not "let loose", they are apply VAT EXACTLY as the UK Government requires.

UK Sellers (and buyers) are miffed about ANYTHING to do with taxes, always have been, have had more UK buyers ask to under declare than any other country and read of more refusals to pick up packages because of VAT due than any other country.

[jules7970]

So now that Ebay is charging sellers FVF based on sale price, postage & VAT taxes, am I expected to charge more for shipping & handling now that it's going to cost me more to sell to countries that charge VAT?

[lotzofuniquegoodies]

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@valuestore wrote:

There is VAT on shipping, thanks that was key bit I wasn't sure about.

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tyler@ebay 

@dhslk 

Just had a larger order to the UK.

Sellers Hub details include the Extended selling price, Shipping, VAT Collect Amount and then a  final total.(All inclusive)

A GB ### #### ## Code - Paid Notation is included as part of the address. 

This notation is at the bottom of the Sellers Hub page:

**Total includes eBay collected VAT. We have deducted this amount and will remit it to the UK Tax Authorities.

The packing slip generated in eBay omits the above notations and does not include VAT as part of the final total.

The GB ### #### ## Code Paid Notation could be cut and pasted into the secondary customs document that you can update in Shippo along with the amount collected and attached to label. Otherwise there is no way that UK customs will know it has already been paid. This could cause delays for delivery or buyer would be required to PROVE they paid prior to either picking up or delivery.

Was hoping that eBay had ducks in a row when this was implemented Jan 1 2021. My hope was wrong. Should be the same procedure for ALL countries now collecting VAT in advance.

-Lotz

PS. Shippo Packing slip states Tax and the amount but no notation of Paid by eBay or GB ### #### ## Code Paid VAT and final  total math is not correct.

PS#2. As per eBay Delivery specifics. 5 to 13 business days for Small Pkt air. As per CP, No ETA with Small Pkt Air. 10 days for tracked.

Shipment last month noted as 5 to 10 business days to Sweden. Still in route.

Delivery times being quoted are still nowhere close to being accurate for Intl shipments and many potential buyers believe the info shown by eBay is written in stone and does not denote customs delays can occur.