If you're an eBay seller based in the UK and you want a conclusive answer to the are you paying VAT on your eBay fees question, then you've come to the right place.
In this article, we let you know which eBay fees incur 20% VAT and which don’t, and we show you how to check what fees you’ve been charged.
DISCLAIMER
We are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice. We highly recommend that users seek advice from qualified accountants for their tax compliance.
Which eBay fees incur 20% VAT?
There are various different types of eBay fees, and the truth is that most of them (but not all of them) incur 20% VAT if you're a UK established seller.
If you're using eBay Managed Payments, then the following eBay VAT fees apply:
Listing fees - VAT rate: 20%
After you've used your monthly allocation of 1,000 free listings (or more if you have an eBay Shop), you'll be charged 35p for each new listing created.
Final value fees - VAT rate: 20%
Final value fees are calculated as 12.8% of the total amount of the sale (which includes the item price, postage, taxes and any other applicable fees) plus a fixed charge of 30p per order.
Fees for optional listing upgrades - VAT rate: 20%
Reserve Prices, adding a Buy it now Price, Subtitles, Gallery Plus, Listing in 2 categories, Scheduler, International Site Visibility, and Special durations are all examples of optional listing upgrades.
Fees for Basic eBay Shops - VAT rate: 20%
For a monthly cost of £19.99, in addition to the 1,000 free listings, you'll receive an extra 100 free listings a month, which include the Special duration listing upgrade. After that, the listing fee is 35p per listing.
Dispute fee - VAT rate: 20%
When you are found responsible for a chargeback or other disputed amount, as per eBay's policies, they charge a £16.80 dispute fee for each dispute.
International fee - VAT rate: 20%
If your registered address is in the UK, eBay charges an international fee when the delivery address for the item (entered by the buyer during checkout) is outside the UK.
Seller currency conversion charge - VAT rate: 20%
When you create listings or sell items on an international eBay site, eBay may convert your funds to a different currency in order to collect amounts owed by you to eBay or payout funds due to you. They charge a 2.5% fee for doing so.
Source: eBay
Which eBay fees are zero rated?
The only eBay fees that are zero rated are postage services such as those from Packlink and Royal Mail.
Packlink - VAT rate: 0%
eBay Delivery powered by Packlink is a platform that allows UK sellers to purchase Delivery labels at competitive rates. Packlink uses DHL, DPD, UPS, Hermes and InPost as their preferred carriers.
Source: Packlink
Royal Mail - VAT rate: 0%
Royal Mail also offers sellers the opportunity to purchase postage labels through eBay via their Online Potage portal.
Source: Royal Mail
How do I check what VAT eBay charges me?
On your monthly eBay fees VAT invoice, you will see a full breakdown of all the fee types you have been charged during that month, including the VAT on eBay fees. At the bottom will be a breakdown of the total taxable fees and total non-taxable fees:
We recommend checking out our eBay Fees guide too; it will help you better understand what fees eBay charges and how you can calculate them.
Automating your eBay seller bookkeeping
If you want to join thousands of sellers who are automating their eBay, Amazon, Etsy and Shopify seller bookkeeping, then you should check out Link My Books.
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Link My Books hooks up directly with your eBay account and accounting software like Xero or QuickBooks. It automates all your bookkeeping by creating a summary for each eBay payout with all sales, refunds, fees, and VAT correctly broken down & accounted for.
So, one less stressful task for you to do each month. Try Link My Books for free today.
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