According to ebay my ebay business account has just crossed the VAT threashold and i must now register a VAT ID number within 30 days, Once registered do ebay automatically add VAT to my sales ?, also, what should i do if my sales drop below the yearly £85,000 threashold?. Thanks in advance for any advice.
No practical experience of VAT, but can answer part of your question.
Ebay does not add any VAT, buyer buys at and pays the price you sell at, it will be up to you to allow for VAT being in the sale price, so you will have to increase prices.
