19-06-2020 10:19 AM
I am a private seller and have had VAT added to an item I have just sold to an American friend. .First time this has happened so wondering is this correct?.
VAT is a UK/EU sales tax and has nothing to do with US buyers.
Your US buyer has been charged a sales tax by her particular State. Ebay has to collect this tax from the buyer, and send it to the relevant State. Australia and New Zealand have a similar system in place (the GST). Most US States are on board now, as they were losing piles of much-needed cash, due to their citizens failing to declare their internet sales on their annual tax returns. You don't need to do anything, as you don't receive these taxes.
You can read all about it in the Seller Centre (link at foot of any page) or the Help pages (links at top and foot of any page). All the countries and US States currently employing tax-collection at source are listed there.