topic Re: VAT in the UK in Member To Member Support

VAT in the UK

sea-breeze-designs — Tue, 02 Jun 2026 18:33:54 GMT

I am a private seller and wondered why my customers are being charged VAT who also live in the UK?

Re: VAT in the UK

papso22 — Tue, 02 Jun 2026 19:25:09 GMT

Are they being charged VAT on the buyer protection fee and postage?

They are taxable supplies by ebay.

Re: VAT in the UK

sea-breeze-designs — Tue, 02 Jun 2026 20:15:09 GMT

I use simple delivery and there is a buyer protection fee.

I don't really understand it so just trying to figure out why

Re: VAT in the UK

tobiasd4 — Tue, 02 Jun 2026 20:22:04 GMT

Ebay is a business, so has to charge VAT on their fees.

It would confuse people less if they didn't break the BPF down and just showed total cost.

Re: VAT in the UK

sea-breeze-designs — Wed, 03 Jun 2026 09:19:32 GMT

I guess it's the same as shops in America where VAT is added at the checkout. Something we don't do in the UK. But now I know I guess I should let my customers know as I am always getting problems due to they think their postage charge has risen. It's a pain in the butt. Now that I know I can let all my UK customers know. Thank you for clarifying 👍

Re: VAT in the UK

*vyolla* — Wed, 03 Jun 2026 10:19:49 GMT

Hi ,

Your buyers shouldn't be subject to the extra Buyer Protection Fee, and you shouldn't have to use eBay's Simple Delivery - these only to apply to items listed on private accounts (those sellers who are listing their own personal bits and pieces such as items from their wardrobe/loft etc).

A Business seller is someone who buys or makes items to sell on. They need to be registered as a business to meet the requirements of UK law (eBay will be providing HMRC with your details anyway so it's vital to keep correct accounts for your tax return). You can obviously offset more expenses as a business seller, but can't offset any at all as a private one.

To correctly register as a business seller simply go to your Personal Information in your account and to the right of Account Type, which will be showing as 'Individual' you'll see an Edit option.

https://accountsettings.ebay.co.uk/profile

This doesn't affect your feedback profile or any current listings, it merely upgrades your account so that you're compliant with current consumer and eBay policy.

Your items will then appear cheaper to your buyers and you can set your own postage prices and methods.

If you're also selling your own items, just open another eBay account (you can have more than one).

@sea-breeze-designs

Re: VAT in the UK

papso22 — Wed, 03 Jun 2026 10:53:40 GMT

@sea-breeze-designs wrote:

I guess it's the same as shops in America where VAT is added at the checkout. Something we don't do in the UK. But now I know I guess I should let my customers know as I am always getting problems due to they think their postage charge has risen. It's a pain in the butt. Now that I know I can let all my UK customers know. Thank you for clarifying 👍

No it's not the same.

Your customers are shown the VAT inclusive price on ebay's charges.

Re: VAT in the UK

sea-breeze-designs — Wed, 03 Jun 2026 11:27:22 GMT

I prefer the simple delivery service it makes things easier. I am a private seller and universal credit record my earnings for each month. I am not a viable business as of yet but hope to grow to be one. The VAT is added by eBay that my customer has to pay.

Re: VAT in the UK

papso22 — Wed, 03 Jun 2026 11:34:23 GMT

'Side hustles' require a business account. Being viable is irrelevant.

Re: VAT in the UK

*vyolla* — Wed, 03 Jun 2026 12:56:44 GMT

@sea-breeze-designs wrote:

I prefer the simple delivery service it makes things easier. I am a private seller and universal credit record my earnings for each month. I am not a viable business as of yet but hope to grow to be one. The VAT is added by eBay that my customer has to pay.

You're definitely trading as a business, but what I'm trying to get across here is that because you're trading on the incorrect account you cannot claim business expenses and HMRC will get in touch soon because you've sold enough new jewellery items to trigger a 'nudge' letter, thus you'd be so much better off trading correctly and claiming expenses. Totally your call, of course.