UK Sub-Threshold LTD Company: 20% VAT Automatically Added to All New & Existing Listings Glitch

Hello Community Team,

I am writing to request urgent technical escalation regarding a persistent tax glitch on my business account.

My business is a registered UK Limited Company, and all of our inventory is located and shipped entirely from within the UK. Our annual rolling turnover is well below the £90,000 threshold, meaning we are not required to be registered for VAT in the UK, nor do we collect it.

Despite this, eBay's system is automatically adding 20% VAT onto our listing prices for UK buyers, making our items completely uncompetitive.

What I have already tried to fix this:

  • I have checked my Registration, Return, and Ship-From addresses—all are set to the UK.

  • I have tried creating brand-new listings completely from scratch, but the 20% VAT is still automatically attached to the final price.

  • I have attempted to bulk-edit and revise current listings to ensure the VAT rate field is empty/0%, but the system overrides it.

It appears my account has been erroneously flagged by an automated back-end compliance tool as an "overseas seller" or subject to Marketplace Facilitator laws. Standard phone customer service has been unable to resolve this or understand the back-end technical error.

Could an eBay Community Manager please look into my account details and escalate this to the technical/compliance team to have this incorrect VAT collection flag manually removed?

Thank you for your time and help.

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UK Sub-Threshold LTD Company: 20% VAT Automatically Added to All New & Existing Listings Glitch

papso22
Experienced Mentor

This board is not a route to ebay.

 

One thought, are all your directors UK nationals with UK addresses?

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UK Sub-Threshold LTD Company: 20% VAT Automatically Added to All New & Existing Listings Glitch

Thanks for the reply. Unfortunately, there is no other way to reach eBay technical support apart from the community board. Yes, there is only one director who is a UK citizen.

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