eBay collecting VAT on our behalf

[4x4accessories]

Has anyone else encountered this issue? We received a message from eBay claiming our account is linked to a seller based outside the UK, which is incorrect. We are a UK VAT-registered company, the account is managed by a UK-based director, and we have consistently submitted our VAT returns.

HMRC confirmed we’re a UK business and told us to sort it with eBay. We’ve called eBay 6–7 times, but they keep hanging up on us, wasting over four hours. Anyone know how to get hold of a proper English-speaking eBay rep, not some random call centre in the middle of nowhere, to fix this?

We replied to eBay’s initial message, and they responded, saying it doesn’t affect us, confirming they can see we’re a UK-registered company compliant with VAT regulations.

Despite eBay’s claim that it wouldn’t affect us, they’ve started collecting VAT on our behalf. HMRC advised us to contact eBay, but when we call, they just hang up, clueless about how to help. 

[papso22]

marco@ebay 

kat@ebay

dave@ebay 

Can any of you help with this, it's quite a serious VAT issue as the OP cannot complete their VAT returns correctly.

[4x4accessories]

Since May 13, 2025, our transaction records show an "import tax" applied to all orders, despite our entire inventory being located in Leeming Bar, North Yorkshire, UK. This tax also affects our in-house manufactured products, causing significant challenges for our accounts department. As a UK-based company with UK VAT registration, previously confirmed by eBay, we are incorrectly being treated as a non-UK seller.

[therenewalworkshopltd]

Have Ebay got you confused with a Ltd company of the same/similar name?

There is a 4X4 ACCESSORIES & TYRES LIMITED, which has foreign owners and would cause Ebay to go down this route.

[therenewalworkshopltd]

And a little bit of digging, the VAT number you are displaying on your listings, is showing that company name.

So, you are not showing Ltd company information on your listings, so there is something wrong with the way you are registered.

Ebay is perfectly correct in collecting the VAT on your sales.

You however can still claim any VAT spent on your purchases.

[4x4accessories]

Our eBay account is registered under a UK-based Director, and all item locations are set to the UK - yet we’re still being charged import tax on our sales. eBay previously told us the message about being treated as a non-UK seller was a general notification and wouldn’t affect us, but that clearly isn’t the case. We’ve contacted HMRC and they confirmed everything is correct on our end. They advised us to follow up with eBay directly, but every time we call the eBay support number, we end up being hung up on - three times now!

[therenewalworkshopltd]

But you have international directors.  That is what the issue is.

So Ebay are treating you as an overseas company that also has UK directors.

Amaxxn do exactly the same thing when this is the case.

But frankly, at the end of the day, does it really matter whether they collect the VAT or you collect the VAT.

You just need to amend your returns appropriately and I would suggest that you inform HMRC of this as well.

And like I said, your information is not displaying correctly on your listings.  It should show that you are indeed a Ltd company.

[4_bathrooms]

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@4x4accessories wrote:

Our eBay account is registered under a UK-based Director

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Having checked your VAT number against HMRC the VAT number shows as being registered at HMRC's Aberdeen office. HMRC's Aberdeen office is where non-established taxable persons (NETPs) usually show as having their VAT number registered.

This normally means a person of significant control is not established in the UK therefore ownership of the company is outside the UK.

[dave@ebay]

Thanks for the tag @papso22 

Hi @4x4accessories 

I spoke to the VAT team about this, they tried calling you a number of times on the number you have registered on the account but they couldn't get through to you. 

Unfortunately, there isn't anything we can do from this side. You will need to appeal through HMRC directly.

Once that's done you will need to provide us with some form of written confirmation that HMRC are changing their decision. 

I've asked the guys to try call you again, they might be able to give you some more information on the process. 

Thanks,

Dave

[4_bathrooms]

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@4_bathrooms wrote:

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This normally means a person of significant control is not established in the UK therefore ownership of the company is outside the UK.

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This guidance from HMRC clarifies the VAT treatment of goods sold through an online marketplace where the seller is established outside the UK and the goods are located within the UK.