Unfair VAT Compliance Flags on eBay

Hello everyone,

I want to share my experience with eBay VAT compliance checks.

Our account has always been compliant: we pay VAT, use OSS, and report everything correctly. Despite this, we received warnings from eBay saying our VAT ID was "incorrect" and that our selling privileges in the EU might be restricted.

The problem happened because eBay requires the account address to match exactly with the tax authority records. However, the VIES system only shows VAT validity, not the full registered address, so their system created an error even though nothing changed on our side.

We solved it by:
- Checking the registered data with our tax authority
- Updating our eBay profile address to exactly match the tax records
- Contacting eBay support to confirm the update

After a few days, eBay confirmed that our account is fine and any restrictions were removed.

Key tips:
- Make sure your business address matches exactly with the tax authority
- Check your eBay profile regularly
- Contact support immediately if you get warnings

It is frustrating that honest sellers still face these issues due to automated checks.

Has anyone else experienced the same issue? How did you solve it?

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Unfair VAT Compliance Flags on eBay

It's interesting how eBay accounts for things. You can find it all on Companies House: they have a "cost of sales" even though eBay doesn't sell the items, we do, as they always make clear on public-facing statements.

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Unfair VAT Compliance Flags on eBay

fargvs
Experienced Mentor

You are likely to find that selling Chainsaws and parts into the UK from Lithuania very difficult as sales are strictly regulated/restricted by this policy --- considered as bladed tools/instruments >

https://www.ebay.co.uk/help/policies/prohibited-restricted-items/knives-bladed-items-policy?id=5047&...

 

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Unfair VAT Compliance Flags on eBay

Those 'costs of sales' on the ebay accounts are not the costs of items seller's sell, they are the costs ebay incurrs in selling the services it provides to sellers and buyers.

 

They have absolutely no idea what it has cost sellers for the items they (the seller) sells.

 

 

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Unfair VAT Compliance Flags on eBay

Hello, and thank you for your comment.

 

As far as I understand the eBay Knives and Bladed Items Policy, the chainsaw parts I sell such as cylinders, pistons, crankshafts, handles, carburetors, ignition modules, guide bars, and chains are considered replacement parts for tools rather than bladed weapons or prohibited items.

 

Guide bars and chains for chainsaws are treated as parts for tools like chainsaws, which are allowed under the policy, provided that all applicable shipping and legal requirements are followed. I always make sure my listings comply with eBay rules and never describe these parts as weapons.

 

If you are aware of any recent changes to the regulations, I would be happy to review and update my listings if needed.

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Unfair VAT Compliance Flags on eBay

There have been no recent changes to lehal regulations but ebay has brought in very stringent policies relating to the sale of items they see as bladed.

 

Thus even if you list in the right category the mere mention of chainsaw in the description will almost certainly cause issues.

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Unfair VAT Compliance Flags on eBay

Thank you for clarifying this.
I understand that even though chainsaw parts are not restricted items by law, eBay's automated system may still flag listings simply because of the word chainsaw in the description.

I will review my listings and adjust the titles or descriptions if needed to reduce the chance of issues. Thank you for sharing this information.

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