30 January, 2018 | 11:30AM GMT
If you are running a business selling on ebay.co.uk it’s important to check you are complying with your Value Added Tax (VAT) obligations. Depending on where you or your goods are located and the size of your business, VAT rules may apply to you.
VAT is complex and there are quirks, for example when selling used goods. We recommend that you seek advice from an accountant, but here are some starter tips:
- If your business is located in the UK and sells goods to UK customers and your total UK located sales are above £85,000 per annum, you must:
o register with the UK tax authority (HMRC), and
o display your VAT ID on your eBay listings; and
o collect VAT, and
o report your collected VAT by completing a tax return with HMRC.
- If you are located overseas and forward deploy inventory to the UK, no threshold applies and you must immediately register for VAT.
- If you ship to, or forward locate inventory in other EU states you may also have to register for and pay VAT in those countries as well.
eBay continues to work with HMRC to prevent tax evasion and will take action against those who don’t comply with the law, including selling blocks.
Thank you for selling with us.
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***Important tax reminder: Your Value Added Tax (VAT) obligations***
